Discover how Canada's CPTPP agreement with Vietnam can cut your import duties to zero — and how to source from Vietnam the right way in 2026.
If you're a Canadian business owner thinking about importing from Vietnam, 2026 is one of the best years to start. Thanks to the CPTPP Canada trade commitments, Vietnam is one of the most cost-effective sourcing destinations available to Canadian importers right now — with duty rates that can drop to zero on thousands of product categories. This guide walks you through exactly how it works, what you need to qualify, and how to build a solid sourcing operation from Vietnam to Canada.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between 11 countries, including Canada, Vietnam, Japan, Australia, and Mexico. Canada ratified CPTPP in December 2018, and the agreement entered into force on December 30, 2018.
For Canadian importers, CPTPP is a game-changer. Vietnam is a CPTPP member, which means goods manufactured in Vietnam and imported into Canada may qualify for significantly reduced — or even zero — import duties. The key phrase is "may qualify." Whether your product qualifies depends on the Rules of Origin, which we'll cover below.
Before CPTPP, Canadian importers buying from Vietnam paid the standard Most-Favoured Nation (MFN) duty rates — the same rates applied to China, India, or any country without a specific trade deal. Under CPTPP, those rates are being phased down to zero on most goods over a staged schedule. Many categories already sit at 0% duty. Others are at 3–5% and dropping annually.
Over the past few years, there's been a clear shift in how Canadian importers think about their supply chain. The China+1 sourcing strategy — maintaining a primary China supplier while adding a secondary source in Southeast Asia — has moved from a niche approach to mainstream practice. Vietnam is the most popular destination for this diversification, and for good reason:
That said, Vietnam is not a drop-in replacement for China in all categories. China still leads in scale, tooling capability, and supplier diversity. A smart Canadian importer uses Vietnam strategically — often for specific product lines — rather than as a wholesale replacement.
The most important thing to understand about CPTPP is that not every product made in Vietnam automatically qualifies. The product must meet the Rules of Origin (RoO) — a set of criteria that determine whether goods genuinely "originate" from a CPTPP member country.
The three main ways a product can qualify as originating under CPTPP are:
1. Wholly obtained or produced: The product is entirely produced in Vietnam using Vietnamese inputs (e.g., agricultural products grown in Vietnam).
2. Produced entirely from originating materials: The product is made entirely from materials that already qualify as CPTPP originating.
3. Substantial transformation: The product is manufactured in Vietnam using some non-CPTPP inputs, but enough transformation occurs in Vietnam to change the tariff classification (a "tariff shift"). The specific requirement varies by HS code.
In practical terms, if a Vietnamese factory assembles a product using primarily Chinese components with minimal Vietnamese-added value, the product likely won't qualify for CPTPP preferences. Your supplier needs to provide a CPTPP Certificate of Origin — and they need to be able to substantiate it. Always ask your Vietnamese supplier to confirm in writing that the product meets the Rules of Origin for its HS code. CBSA can request evidence of origin compliance up to four years after importation.
Sourcing from Vietnam starts with finding a legitimate, capable factory. The most reliable approach is working with a local sourcing agent who has on-the-ground relationships in Vietnam. Trade shows like the Vietnam Expo and platforms like Alibaba (with Vietnam-filtered search) are starting points, but agent-led factory assessments are strongly recommended before committing to production.
Key questions to ask a potential Vietnamese supplier:
Before placing your order, confirm the applicable duty rate for your product's HS code under CPTPP. Look this up via Canada's trade agreements tariff schedule through the CBSA website, or ask your customs broker. Knowing your duty rate upfront is essential for building an accurate landed cost model before you commit to any order.
Once you've vetted the supplier, negotiate your pricing, payment terms, lead time, and incoterms. For most Canadian importers, FOB from a Vietnamese port — typically Ho Chi Minh City (HCMC) or Haiphong — is the standard starting point. This means you take responsibility for freight and insurance from the port of origin. You'll need a freight forwarder to manage the ocean shipment to Vancouver or another Canadian port. For a detailed breakdown of incoterms, see our FOB vs EXW vs DDP guide for Canadian importers.
For any new supplier, a pre-shipment inspection is strongly recommended. A third-party inspection firm sends an agent to the factory before goods are loaded to verify quantity, quality, and compliance with your specifications. This is especially important for first orders with a new Vietnamese supplier.
When your shipment arrives in Canada, your customs broker handles the declaration. To claim CPTPP preferential duty rates, you must present a valid Certificate of Origin from your supplier. Keep your origin documentation on file — CBSA can conduct post-import audits and request substantiation up to four years after importation.
If you're new to importing, understanding CARM (CBSA Assessment and Revenue Management) is also essential. CARM changed how importers register and post financial security with CBSA, and it's now fully in effect for all Canadian importers. Read our complete CARM 2026 guide for Canadian importers.
Vietnam has strong manufacturing capabilities in several sectors relevant to Canadian buyers:
Footwear (HS Chapter 64): MFN rates on many footwear categories sit at 18% or higher. Under CPTPP, Vietnamese-origin footwear is currently at 0% or staging toward 0%. On a $50,000 order, that's $9,000+ in duty savings.
Apparel (HS Chapter 61–62): MFN rates on garments are typically 17–20%. CPTPP stages these to 0% over the phase-in period. This makes Vietnamese-origin garments dramatically more cost-competitive versus Chinese imports paying MFN rates.
Furniture (HS Chapter 94): Many furniture categories carry MFN rates of 6.5–9.5%. Under CPTPP, Vietnamese furniture may enter at 0%, providing meaningful savings for Canadian home goods brands.
Not verifying Rules of Origin before ordering: Assuming your Vietnamese supplier qualifies without checking is a costly mistake. If CBSA determines the goods don't meet RoO requirements, you'll owe back duties plus interest.
Relying on the supplier's claim without documentation: The Certificate of Origin must be properly completed and the supplier must have internal records supporting the origin claim. Request a copy before goods ship.
Not accounting for lead times: Vietnam-to-Canada ocean freight typically takes 25–35 days. Factory lead times for custom products can run 45–75 days from order confirmation. Plan your inventory accordingly — late ordering and rushing to air freight will quickly erode the duty savings you worked hard to capture.
Underestimating quality control: A new supplier in a new country means unknown risks. Don't skip inspections just because CPTPP makes the numbers look good. Verify first, ship second.
Q: Do all Vietnamese products qualify for CPTPP duty rates?
A: No. Products must meet the specific Rules of Origin for their HS code under CPTPP. A product assembled in Vietnam primarily from Chinese components may not qualify. Always confirm with your supplier and customs broker before ordering.
Q: How do I get a CPTPP Certificate of Origin from my Vietnamese supplier?
A: Ask your supplier directly. They need to complete the CPTPP origin declaration or a Form CO issued by the Vietnam Chamber of Commerce and Industry (VCCI). The certificate must be in your possession at the time of import.
Q: Is sourcing from Vietnam cheaper than China overall?
A: It depends on the product and category. Ex-factory prices in Vietnam can be similar to or slightly lower than China for some products, but Vietnam's supplier ecosystem (tooling, raw material availability, diversity) is less developed than China's. The CPTPP duty advantage can tip the total landed cost calculation in Vietnam's favour for eligible products.
Q: What ports does ocean freight ship from in Vietnam?
A: The main export ports are Cat Lai Port in Ho Chi Minh City (south Vietnam) and Hai Phong Port (north Vietnam, near Hanoi). Your freight forwarder will arrange routing based on your factory's location.
Q: Do I need a Canadian import licence to import from Vietnam?
A: Most general merchandise doesn't require an import licence, but certain product categories (food, health products, controlled goods) may require permits or registrations. Check with your customs broker for your specific product category.
Navigating a new sourcing country — finding legitimate factories, verifying CPTPP eligibility, arranging inspections, and managing logistics — is a significant undertaking. Epic Sourcing Canada specializes in exactly this: connecting Canadian importers with vetted, capable manufacturers in Vietnam and across Asia, and managing the entire supply chain process on your behalf.
Whether you're exploring Vietnam sourcing for the first time or scaling an existing supplier relationship, our team has the on-the-ground expertise and Canadian market understanding to make it work. Contact Epic Sourcing Canada today to discuss your Vietnam sourcing project.
