{"id":1256,"date":"2025-01-05T09:36:04","date_gmt":"2025-01-05T02:36:04","guid":{"rendered":"https:\/\/nexusnovum.123websitedev.com\/?p=1256"},"modified":"2025-08-26T12:22:06","modified_gmt":"2025-08-26T05:22:06","slug":"het-thoi-viet-nam-duoc-huong-thue-suat-uu-dai-gpt-khi-tiep-can-thi-truong-canada","status":"publish","type":"post","link":"https:\/\/nexusnovum.ca\/en\/het-thoi-viet-nam-duoc-huong-thue-suat-uu-dai-gpt-khi-tiep-can-thi-truong-canada\/","title":{"rendered":"The time when Vietnam enjoyed preferential GPT tax rates when accessing the Canadian market is over."},"content":{"rendered":"

The Canadian government recently announced the removal of 16 countries, including Vietnam, from the list of beneficiaries of the GPT program as of January 1, 2025 (\u201cPolicy<\/strong>\u201d)[1]<\/a>. This Policy has directly affected the competitiveness of Vietnamese goods in the Canadian market \u2013 one of the potential export destinations for Vietnamese businesses.<\/p>\n

To provide a detailed commentary on the impacts of the above-mentioned Policy, in this article, NexusNovum will analyze the following:\ni) Import tariffs applied to Vietnamese goods in Canada prior to January 1, 2025,\nii) The impacts on Vietnamese businesses, and\niii) NexusNovum\u2019s recommendations.<\/p>\n

1. Import Tariffs Applied to Vietnamese Goods in Canada Prior to January 1, 2025<\/strong><\/p>\n

Prior to January 1, 2025, goods from Vietnamese businesses imported into the Canadian market could be subject to one of the following three types of import tariffs:<\/p>\n

(i) Most-Favored-Nation (MFN) Tariff Rate (\u201cMFN<\/strong>\u201d): MFN stands for Most-Favoured-Nation \u2013 the basic import tariff rate that Canada applies to goods from other countries and territories based on the principle of non-discrimination among members of the World Trade Organization (WTO), such as Australia, Brazil, Brunei, Thailand, Laos, the Philippines, Vietnam, and others.<\/p>\n

(ii) General Preferential Tariff (GPT) Regime (\u201cGPT<\/strong>\u201d): GPT stands for General Preferential Tariff \u2013 a unilateral preferential policy voluntarily granted by Canada to certain developing and least-developed countries to promote trade and support economic development, such as Afghanistan, Angola, Bhutan, Vietnam, and others.<\/p>\n

(iii) Tariff Preferences under the Comprehensive and Progressive Trans-Pacific Partnership (\u201cCPTPP<\/strong>\u201d): a special preferential import tariff rate granted to countries and territories that are members of the CPTPP, including Canada, Mexico, Peru, Chile, New Zealand, Australia, Japan, Singapore, Brunei, Malaysia, Vietnam, and the United Kingdom.<\/p>\n

Accordingly, the import tariff rates are arranged in descending order as follows: MFN > GPT > CPTPP.<\/p>\n

For example<\/u><\/strong>: Wooden chairs are subject to import tariffs of 9.5% (MFN) \u2013 6% (GPT) \u2013 0% (CPTPP) under\u00a0The 2025 Canadian Customs Tariff Schedule<\/a>.<\/u><\/p>\n

2. Impacts on Vietnamese Businesses<\/strong><\/p>\n

a) Current Situation<\/strong><\/p>\n

To benefit from CPTPP tariff preferences, Vietnamese businesses must provide a Certificate of Origin (C\/O). Accordingly, the C\/O is an important document proving that the goods meet the rules of origin (\u201cQTXX<\/strong>\u201d) under the CPTPP Agreement. Specifically, the goods must be wholly obtained from CPTPP member countries or produced using materials that meet a certain value threshold and\/or follow specific production processes within the CPTPP region.<\/p>\n

However, most Vietnamese businesses use raw materials imported from non-CPTPP countries, particularly China, and therefore do not qualify to obtain a C\/O. As a result, instead of applying the higher MFN tariff rate, many businesses opt to declare and apply the GPT tariff as an intermediate solution.<\/p>\n

b) Consequences<\/strong><\/p>\n

When Vietnam is no longer on the list of countries eligible for GPT tariffs, goods exported to Canada can only be subject to two types of import tariffs: MFN and CPTPP.<\/p>\n

This means that if Vietnamese goods do not meet the rules of origin under the CPTPP Agreement, they must be subject to the higher MFN import tariff. This poses the risk of increased product costs, reducing competitiveness for products with low profit margins or those competing directly with products from CPTPP member countries.<\/p>\n

3. NexusNovum\u2019s Recommendations<\/strong><\/p>\n

Given this situation, in order to maintain their competitive edge and benefit from CPTPP preferential tariffs, Vietnamese goods must meet the QTXX under the Agreement. This not only helps Vietnamese businesses reduce tariff costs but also contributes to optimizing product pricing in the Canadian market.<\/p>\n

To achieve this, NexusNovum recommends that Vietnamese businesses take the following actions:<\/p>\n

(i) Proactively Restructure the Supply Chain<\/strong>: prioritize sourcing materials from domestic Vietnamese suppliers and CPTPP member countries to meet the Agreement\u2019s QTXX requirements. It should be noted that the materials must have actual origin from CPTPP countries, not merely undergo a simple transshipment or origin-switching process.<\/p>\n

(ii) Seek Legal Consultation:\u00a0<\/strong>proactively work with consulting firms to gain a clear understanding of QTXX and the process of applying for a C\/O under the CPTPP Agreement.<\/p>\n

(iii) Closely Monitor Changes in Trade Policies\u00a0<\/strong>from the Canadian side to ensure appropriate preparation for market strategy.<\/p>\n

The above article discusses Vietnamese enterprises\u2019 goods that are no longer eligible for GPT preferential tariffs when imported into the Canadian market as of January 1, 2025. NexusNovum hopes that the article will be useful to our valued clients. Should you require detailed advice on QTXX or the procedure for obtaining a C\/O under the CPTPP Agreement, please contact us directly so that NexusNovum can provide timely support.<\/p>\n

Note:\u00a0<\/strong>This article is prepared based on the provisions of current Vietnamese law and practical experience. The information contained herein is intended for reference purposes only. We do not assume any responsibility or legal obligation toward any individual or organization using the information in this article for purposes other than reference. Before making any choices or decisions, please seek formal recommendations or contact NexusNovum to receive in-depth advice from us.<\/p>\n

Please cite the source \u201cNexusNovum\u201d when using or sharing this article anywhere.<\/p>\n

[1]<\/a>\u00a0Please see the detailed content at\u00a0Canada\u2019s unilateral tariff preference programs for imports from developing countries<\/em><\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Ch\u00ednh ph\u1ee7 Canada m\u1edbi \u0111\u00e2y \u0111\u00e3 c\u00f4ng b\u1ed1 lo\u1ea1i 16 qu\u1ed1c gia, trong \u0111\u00f3 c\u00f3 Vi\u1ec7t Nam, kh\u1ecfi danh s\u00e1ch c\u00e1c qu\u1ed1c gia th\u1ee5 h\u01b0\u1edfng ch\u01b0\u01a1ng tr\u00ecnh GPT t\u1eeb ng\u00e0y 01\/01\/2025 (\u201cCh\u00ednh s\u00e1ch\u201d)[1]. Ch\u00ednh s\u00e1ch n\u00e0y \u0111\u00e3 \u1ea3nh h\u01b0\u1edfng tr\u1ef1c ti\u1ebfp \u0111\u1ebfn kh\u1ea3 n\u0103ng c\u1ea1nh tranh c\u1ee7a h\u00e0ng h\u00f3a Vi\u1ec7t Nam tr\u00ean th\u1ecb tr\u01b0\u1eddng Canada […]<\/p>","protected":false},"author":1,"featured_media":3680,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-1256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tin-tuc"],"acf":[],"yoast_head":"\nH\u1ebft th\u1eddi Vi\u1ec7t Nam \u0111\u01b0\u1ee3c h\u01b0\u1edfng Thu\u1ebf su\u1ea5t \u01b0u \u0111\u00e3i GPT khi ti\u1ebfp c\u1eadn th\u1ecb tr\u01b0\u1eddng Canada - NexusNovum<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nexusnovum.ca\/en\/het-thoi-viet-nam-duoc-huong-thue-suat-uu-dai-gpt-khi-tiep-can-thi-truong-canada\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"H\u1ebft th\u1eddi Vi\u1ec7t Nam \u0111\u01b0\u1ee3c h\u01b0\u1edfng Thu\u1ebf su\u1ea5t \u01b0u \u0111\u00e3i GPT khi ti\u1ebfp c\u1eadn th\u1ecb tr\u01b0\u1eddng Canada\" \/>\n<meta property=\"og:description\" content=\"Ch\u00ednh ph\u1ee7 Canada m\u1edbi \u0111\u00e2y \u0111\u00e3 c\u00f4ng b\u1ed1 lo\u1ea1i 16 qu\u1ed1c gia, trong \u0111\u00f3 c\u00f3 Vi\u1ec7t Nam, kh\u1ecfi danh s\u00e1ch c\u00e1c qu\u1ed1c gia th\u1ee5 h\u01b0\u1edfng ch\u01b0\u01a1ng tr\u00ecnh GPT t\u1eeb ng\u00e0y 01\/01\/2025 (\u201cCh\u00ednh s\u00e1ch\u201d)[1]. 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