Experts emphasize the significance of aligning with the European Union’s Carbon Border Adjustment Mechanism (CBAM) for Vietnamese enterprises to stay competitive and foster a sustainable value chain.
Starting October 1, the EU’s trading partners must report greenhouse gas emissions in key exports like steel, cement, aluminum, fertilizer, hydrogen, and electricity. By 2026, they’ll need to purchase CBAM certificates, priced based on EU’s Emissions Trading System.
Although initially deemed insignificant for Vietnam, CBAM’s implications are far-reaching. Failure to comply could mean hefty carbon taxes for manufacturers. The EU may also expand CBAM’s coverage to include more sectors.
Nguyen Hoa Cuong, Vice Director of the Central Institute for Economic Management, stresses the importance of ‘going green’ for commercial success, citing Bangladesh’s success in apparel exports. He urges Vietnam to prepare for CBAM to maintain competitiveness.
Researchers advocate for carbon emission reduction measures and call for a carbon pricing mechanism in Vietnam to support enterprises and enhance their EU market access.
Vietnamese enterprises are encouraged to enhance energy efficiency and reduce carbon footprints for smoother access to EU markets.
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