Are Canada and Vietnam taking their relationship to the next level? | CBC News

Why Canada's rolling out the red carpet for Vietnamese President Tô Lâm

In state visit, middle powers likely to deepen trade, energy, say experts

From a welcoming ceremony with military honours to a lavish state dinner — as far as diplomatic events go, a state visit is as formal as it gets: the ultimate symbol of friendly bilateral relations.

Today, Canada will be greeting Vietnamese Leader Tô Lâm with such a warm gesture. Lâm — who serves both as the president and the first general secretary of Vietnam's Communist Party — will be welcomed by Governor General Louise Arbour and Prime Minister Mark Carney, in a moment that could be a turning point for Canada-Vietnam relations.

The Southeast Asian country is a major trading partner, reaching $20.6 billion in two-way trade 2025. But it also has a checkered human rights record and keeps in good standing with adversaries like Russia and North Korea.

So why has Canada chosen its leader for its first state visit of 2026? CBC News spoke with several experts ahead of the occasion on what Canada stands to gain from closer ties to Vietnam.

In some ways, Canada and Vietnam have much in common: Both countries are middle powers, sharing a border with juggernauts (the U.S. and China, respectively).

Both nations have also been steadily increasing their bilateral trade in recent years — Vietnam is now Canada's largest trading partner in Southeast Asia.

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"Canada and Vietnam have had a comprehensive partnership since 2017," said Julie Nguyen, chair of the Canada-ASEAN Initiatives at the York Centre for Asian Research, referencing industries like trade, defence, science and diplomacy.

"It is time for the two countries to elevate their partnership to the next level in order to ensure economic resiliency, security."

Vietnam is racing to become a high-income country by 2045. In order to reach that goal, it will have to move into advanced manufacturing, science, technology and AI development, Nguyen says.

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"All of these products and services can be provided by Canada."

Canada is also working to finalize a free trade agreement with the Association of South East Nations (ASEAN). Vietnam could prove clutch in those efforts, since it is a prominent member of the intergovernmental regional organization, says Jeff Nankivell, president and CEO of the non-profit think-tank, the Asia Pacific Foundation.

And, Nankivell says, Canada is likely to find a willing partner in Vietnam, which has also faced punishing American tariffs, with the U.S. at one point slapping a 40 per cent levy on goods determined to have been transshipped through Vietnam.

"Everyone in the world is looking to diversify," he said.

"When we knock on the door of a country like Vietnam, it opens very quickly because they have a similar interest in diversifying."

Vietnam is also hungry for energy. It's one of the fastest-growing economies in the world and its population is relatively young and well educated.

That's of interest to Canada, because it could provide commodities like liquified natural gas (LNG), says Nankivell.

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"On conventional energy, LNG and crude oil, there could be statements of intention on the Vietnamese side to look to Canada for future supplies," he said.

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Canada could also respond to Vietnam's ambitious nuclear power program, says Nankivell.

"You might see announcements or memoranda of understanding related to closer co-operation to explore the deployment or acquisition of Canadian nuclear technology in Vietnam."

But Canada and Vietnam also have key differences in values. Human Rights Watch highlighted this in an open letter addressed to Carney and Arbour about Vietnam's crackdown on political dissidents.

Amnesty International has accused Lâm's government of using a vague penal code to crack down on dissent and suppress freedom of expression.

He has also travelled to North Korea as recently as October of last year, a country with a dismal human rights record and from which Canada has suspended full diplomatic relations since 2010. Lâm has also held high-level talks earlier this month at the Kremlin with Russian President Vladimir Putin.

Nankivell says it's an important reminder — and stronger trader relationships will only help Canada have more leverage in advancing liberal values.

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"It is still very much in Canada's national interest to continue working towards a world where human rights are better respected than they are today, but you need channels for that," he said.

"Having a state visit with the leader of a country like Vietnam is an opportunity to deepen those ties."

Jennifer Yoon covers the latest national and international news for CBC News on television, radio and digital. You can reach her at jennifer.yoon@cbc.ca.