CPTPP preferences and quality positioning are helping Vietnamese textiles move up the value chain.
Canada has become a rare bright spot for Vietnam’s textile and garment exporters at a time when tariffs and competition are squeezing margins elsewhere. Exports to Canada are estimated to have grown by around 10% in 2025, reaching more than $1.3bn, supported by preferential access under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Ottawa’s push to diversify supply chains away from overconcentration.
The momentum was visible at a major textile and apparel exhibition in Toronto in 2025, where Vietnamese manufacturers drew strong interest from North American buyers. Bao Minh Textile JSC showcased mid- to high-end yarns and fabrics produced through a fully integrated chain, while Viet Hong Textile Dyeing JSC highlighted its denim fabrics.
Canada remains a relatively small apparel market, but one with demanding standards. Bob Kirke of the Canadian Apparel Federation said Vietnamese products are competitive on quality, though often enter Canada indirectly through global brands. He argued that deeper penetration will depend on more direct partnerships between Canadian firms and Vietnamese suppliers.
Vietnamese companies are positioning themselves accordingly. Viet Hong sources cotton from CPTPP member countries—Vietnam, Brazil and Australia—ensuring tariff eligibility. With current capacity of 1.2m metres of fabric per month and plans to expand to 2m, it is preparing to scale further in Canada. Bao Minh, entering the market for the first time after exporting to the United States, is targeting premium segments, leveraging its closed-loop production from yarn to finished fabric to meet Canada’s regulatory requirements.
The results are tangible. Vietnam’s textile and garment exports to Canada doubled from $600m to $1.2bn in 2024 following CPTPP implementation and have since stabilised at higher levels. According to Tran Thu Quynh, Vietnam is increasingly seen not just as a sourcing base but as a reliable, high-standard manufacturing hub—one that Canadian investors are using to serve both North American and Asia-Pacific markets.
For Vietnam’s textile industry, Canada offers more than incremental sales. It provides a template for competing on quality, compliance and partnership—rather than price alone.
