Vietnam and Canada elevate ties to strategic partnership amid US trade pressures

3 min read
Source: The Globe and Mail
Vietnam and Canada elevate ties to strategic partnership amid US trade pressures
Photo: The Globe and Mail
TL;DR

Vietnamese President To Lam and Canadian Prime Minister Mark Carney upgraded bilateral ties to a strategic partnership during Lam’s historic state visit. The move aims to diversify trade away from the US, with Air Canada planning direct flights to Ho Chi Minh City by 2027. While experts highlight shared goals in economic resilience, critics note Vietnam’s human rights record and ties to Russia and North Korea.

Key points

  • To Lam, the first Vietnamese president to visit Canada, upgraded the relationship to a strategic partnership, building on a 2017 comprehensive pact.
  • Carney and Lam discussed deepening cooperation in energy, agriculture, defense, and technology, with Lam calling for tangible action programs to eliminate bottlenecks.
  • Air Canada announced plans to seek government approval for direct flights to Ho Chi Minh City in 2027, following an expanded Air Transport Agreement.
  • Vietnam is Canada’s largest trading partner in Southeast Asia, with two-way merchandise trade exceeding $20 billion in 2025.
  • The partnership aligns with Carney’s broader strategy to strengthen middle-power alliances against US and Chinese coercion, including potential EU-CPTPP cooperation.

Background

This visit follows a period of escalating US-Canada trade tensions, including 50% US tariffs on Canadian goods and a domestic 'Made-in-Canada' consumer shift. Canada has also been pursuing closer ties with the EU and other middle powers to counter US economic coercion. Vietnam, facing its own US tariffs and supply chain scrutiny, is actively diversifying its trade relationships.

How outlets are covering it

The Globe and Mail and CBC emphasize the strategic alignment between Canada and Vietnam as middle powers seeking to diversify away from US and Chinese dominance. Vina Nadjibulla and Jeff Nankivell highlight shared interests in economic resilience and trade diversification. However, CBC notes concerns from Human Rights Watch and Amnesty International regarding Vietnam’s crackdown on dissent and its diplomatic ties with Russia and North Korea. Travelweek focuses on the practical outcome of Air Canada’s planned direct flights, while Vietnam News highlights the Communist Party of Vietnam’s emphasis on traditional ties with the Communist Party of Canada.

Why it matters

The upgrade to a strategic partnership signals a significant shift in Canada’s trade and diplomatic strategy, moving away from traditional reliance on the US. It could open new markets for Canadian energy and technology, while Vietnam gains a partner in its push for economic diversification and high-income status by 2045. The move also reflects a broader global trend of middle powers forming alliances to counter major power coercion.

What to watch

Carney is expected to sign a free-trade agreement with ASEAN in November, potentially including a stop in Vietnam. Air Canada will seek government approvals for direct flights to Ho Chi Minh City. Both countries will develop an action plan with specific goals for political, economic, and defense cooperation. Vietnam will continue its bilateral negotiations with the US on tariffs and supply chain issues.

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