Opportunity to increase exports, expand investment for Vietnamese businesses in Canadasento
Opportunity to increase exports, expand investment for Vietnamese businesses in Canada. In addition to the opportunity to increase export turnover to the Canadian market, Vietnamese businesses will have more advantages when investing in this country in the future.
Information given by speakers at the seminar “CPTPP – Business opportunity with Canada?” By the Asia-Pacific Economic Center (VAPEC Ho Chi Minh City) in collaboration with Sai Gon Economic Times Gon and Vietnam Consulting Group (VCG) held on June 28.
Canadian experts shared about the new policies in this country’s investment
Exports surged thanks to reduced taxes
In fact, Vietnam’s export to Canada in recent years is still quite modest. Industries such as seafood, textiles, footwear and wood have not had a breakthrough when penetrating this market. With the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) signed and effective this year, the two-way import and export turnover of Vietnam – Canada in the first 4 months of 2019 has grown 30 % over the same period, reaching 1.46 billion USD; in which Vietnam exported goods to Canada reached 1.18 billion USD, increased strongly by 43.7% (Vietnam is exporting surplus of 896.14 million USD, very strong increase of 73.4% over the same period).
Mr. Bryon Wilfert – Former Senator of Canada Parliament and Honorary President of Canada Trade Link pointed out that when participating in CPTPP, Canada almost lifted the biggest obstacle to tariff barriers for goods imported from Vietnam. Male, is an opportunity for businesses of the two countries to promote business cooperation. “We want to use CPTPP to promote better cooperation through lowering the best tax rates between the two countries,” Bryon Wilfert said.
Along with increasing exports, according to Bryon Wilfert, Canada also wants to promote cooperation with Vietnam in the development of clean technology, waste treatment, clean energy development, water treatment technology … because this is Canada’s strength. In addition, Vietnam has projects on infrastructure development that Canada wants to invest, Canadian businesses also want to build cheap houses for young couples in Vietnam.
Opportunity to increase investment in Canada
According to experts from Canada, with CPTPP, Vietnamese enterprises will now have many opportunities to boost investment in this country. In this regard, according to Vince Lalonde – Director of Immigration – investment services of Pace Law Firm, for a long time, many investors in Asia including Vietnam when investing in Canada mainly choose pictures. “passive” investment is to invest a sum of money for the Canadian government, after 5 years will pay back the correct amount to get the card.
Although this form of investment is not risky, investors do not have much profit. But when CPTPP takes effect, Vietnamese businesses can invest in the direction of establishing companies, opening branches or acquiring companies in Canada … This is the trend of investing in Canada now that businesses and individuals Vietnam may choose because the conditions are much easier than before, especially if it is not binding on the person who set up the company, opening a branch, or the business owner must stay in Canada for 24 months to have a residence card, or 36 months (within 5 years) for Canadian citizenship …
“With new regulations that are more favorable to investors, Vietnamese businesses can now go to Canada to hire indigenous people and become bosses in the Canadian market,” said Vince Lalonde.
However, experts from Canada also recommend that Vietnamese enterprises, when participating in investment, opening companies or acquiring companies in this country, should pay close attention to and understand the laws of the host countries to give them. change and understand carefully before deciding to invest accordingly. Analyzing the reasons, he said, Canada is a very large country, a locality of this country can equal the area of the whole country of Vietnam, and each locality of this country has the conditions, regulations and different investor incentives, requiring investors to hire experienced consulting companies.