Canada and Vietnam: turning potential into partnership

As published on Substack

This week, Canada takes an important step in developing its ties with Vietnam, a key market and partner in the Asia-Pacific region, as it hosts General Secretary and President Tô Lâm in Ottawa.

In a region full of exciting opportunities, few markets represent as much potential as Vietnam. Even among its fast-growing ASEAN partners, Vietnam stands out as a stable, innovative and rapidly expanding market.

Nearly a decade ago, Canada, Vietnam and others had the foresight to move forward with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP. When it entered into force, it was only Canada’s second free trade agreement with partners in the Asia-Pacific region. Canada was among the first countries to see the agreement take effect, with Vietnam following several months later.

In a world of growing uncertainty, this framework has provided much-needed stability and predictability, including in support of Canada-Vietnam economic ties. As we near the conclusion of Canada-ASEAN FTA negotiations, we have another opportunity to enhance the trade and investment environment between Canada and Vietnam.

But even with such remarkable economic growth and supportive trade policy, it is difficult to say that the Canada-Vietnam relationship has been fully realized. Vietnam has emerged as one of Canada’s top two-way trade partners, but the flow is largely one way. Canada has not yet successfully captured Vietnam’s significant and growing demand for energy, resources, food and a host of services. At the same time, two-way investment remains limited, especially compared with peer economies in Southeast Asia and beyond.

This is not to say there have been no successes. Canada’s leading financial service providers have been active in Vietnam for many years, and Canadian expertise has contributed to major projects, including Ho Chi Minh City’s Landmark 81, an icon of the city’s momentum and rise.

Still, there is a clear mismatch between our shared interests and the scale of the opportunity.

The historic visit this week by the president brings Canada and Vietnam to a key juncture. As Canada and Vietnam commit to deepening ties, the business community has an important role to play. Our economic trajectories are different, but our interests and needs are aligned.

Vietnam is growing and industrializing rapidly. To sustain this rise, Vietnam needs secure and reliable partners for energy and natural resources, as well as investments in infrastructure. Vietnam is also home to a young and ambitious population eager to develop its skills, which Canada and its tremendous knowledge economy are well positioned to support. Finally, as Vietnamese incomes grow, so too will demand for greater financial, transportation and digital services, not to mention quality agriculture, seafood and health and lifestyle products — all natural strengths for Canada and areas where we have demonstrated success in nearby markets.

As Canada works to diversify its global economic partnerships and Vietnam works to sustain its rise and achieve its ambitious targets, we are natural long-term partners for growth and resilience.

As we embark on this next chapter of our bilateral ties, we hope to see a more deliberate effort to achieve our potential. For instance, we know there is a significant and growing energy market. But how do we ensure that Canadian businesses are aware of these opportunities and supported as they pursue them? The answer is a closer, more engaged partnership between business and government, with a clear set of priorities and targets against which we can measure progress, especially in areas of focus outlined by Vietnam, including energy, in all its forms, and energy security, technology and finance.

The timing of the president’s visit could not be better. As we look just over the horizon to 2027, we see a critically important year for Canada-Vietnam relations. Canada should further advance its ties with ASEAN during Singapore’s host year and, most significantly, Vietnam will take the lead as APEC chair. Its chairmanship will enable numerous high-level visits and drive attention to this incredible market. The Canadian business community looks forward to working as partners to both governments, as well as the Vietnamese private sector, to leverage this critical year and make progress in advancing this exciting partnership.