In the increasingly complex landscape of global trade, Vietnam is facing new challenges. Today, the Vietnamese government announced that it will develop a comprehensive plan to address the impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM). This decision will profoundly affect Vietnam’s industrial development and export strategy. Our correspondent has analyzed the government’s latest statement and interviewed relevant experts to provide you with insights on how Vietnam can maintain its export advantage under new green trade rules.
CBAM Impact: New Challenges for Vietnamese Export Enterprises
According to the latest data from the Ministry of Industry and Trade of Vietnam, Vietnam is the EU’s 11th largest exporter. However, with the implementation of the CBAM, Vietnam’s exports of steel, cement, fertilizers, and aluminum to the EU will be among the first to be affected.
Le Quang, Chairman of the Vietnam Exporters Association (transliterated), stated in an interview with our newspaper: “CBAM will undoubtedly increase cost pressures on our exporting companies. However, this is also an opportunity to drive our industry towards upgrades. We must accelerate the transition to low-carbon, high-value-added products.”
Vietnam Government’s Multi-pronged Strategy
The Vietnamese government has tasked the Ministry of Industry and Trade with leading the development of a comprehensive response plan to CBAM, in coordination with relevant departments. This plan will be implemented on multiple fronts:
- Strengthen negotiations with the EU and the UK to ensure that CBAM complies with WTO rules and bilateral free trade agreements.
- Study the potential expansion of CBAM to agricultural and forestry products and develop corresponding support and exemption mechanisms.
- Closely monitor similar mechanisms that might be adopted by the United States, Canada, and other countries.
- Enhance international cooperation to ensure Vietnam’s carbon pricing policies gain international recognition.
Nguyen Minh Hai, Deputy Minister of Industry and Trade (transliterated), emphasized: “Our goal is to find a balance between environmental protection and maintaining export competitiveness. This requires the joint efforts of the government, businesses, and international partners.”
Green Production as a Solution
In the face of CBAM challenges, Vietnamese companies are actively seeking transformation. Nguyen Van Linh, Secretary General of the Vietnam Steel Association (transliterated), told our newspaper: “We are encouraging member companies to adopt clean production technologies and develop a circular economy. At the same time, we are exploring the development of high-value-added steel products to enhance competitiveness in the EU market.”
The government will also provide support to enterprises, including the formulation of carbon pricing policies, the development of a domestic carbon market, and the exploration of carbon credits and green credit mechanisms. These measures are aimed at helping enterprises better adapt to international green trade rules.
The implementation of CBAM marks a new era in global trade with a greater emphasis on environmental protection. For Vietnam, this is both a challenge and an opportunity to promote industrial upgrades and enhance international competitiveness.
Nguyen Hong Lien, Minister of Industry and Trade (transliterated), stated at the latest departmental meeting: “Responding to CBAM is not just about our export interests, but also an important step for Vietnam in participating in the global green economic transition. We are confident that through the joint efforts of the government and businesses, Vietnam will find its place in this new era of green trade.”
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