On May 27, 2025, a significant conference was held in Ho Chi Minh City, organized by the Trade Promotion Center (ITPC) in collaboration with the Green Growth Subcommittee of the European Business Association (EuroCham). The focus was on complying with the Carbon Border Adjustment Mechanism (CBAM) to enhance green exports to the European market. This initiative comes at a time when global efforts are intensifying to transition towards a green economy and sustainable development.
During the conference, experts and business leaders shared insights on how to improve green export capabilities to meet regulations and boost competitiveness in major markets, particularly in Europe. Ho Thi Quyen, Deputy Director of ITPC, emphasized that the EU's implementation of CBAM represents both a challenge and an opportunity for Vietnamese businesses. "This is not just a challenge but also an opportunity for Vietnamese enterprises to enhance their competitiveness and meet international standards," Quyen stated.
To maintain and expand market share within the EU, compliance with new regulations like CBAM is essential. Quyen highlighted that CBAM requires transparency regarding carbon emissions during production and mandates the adoption of clean technologies and environmentally friendly production processes. Starting from October 1, 2023, until the end of 2025, businesses exporting to the EU must report their direct and indirect carbon emissions without incurring a carbon tax. However, from January 1, 2026, CBAM will officially take effect, requiring businesses to purchase CBAM certificates corresponding to the emissions related to their exported products.
Nina Miron Claudia, a policy expert from the European Commission, reiterated the importance of CBAM as a key tool for the EU in its decarbonization efforts. She stated, "CBAM is a fundamental mechanism of the European Commission aimed at promoting the decarbonization process. This mechanism complies with international policies and legal commitments of the EU, ensuring compatibility with the World Trade Organization (WTO)." Claudia also mentioned that the European Commission has proposed measures to simplify CBAM, such as introducing a minimum threshold of 50 tons per importer per year for total imports of iron, steel, aluminum, cement, and fertilizer, thereby reducing the administrative burden on smaller importers while still ensuring environmental effectiveness.
Moreover, the conference addressed the technical roadmap and detailed strategies for Vietnamese companies to comply with EU's CBAM. Dr. Nguyen Phuong Nam, General Director of Klinova Climate Innovation Consulting Company, shared insights on the challenges faced by Vietnamese exporters due to increasing reporting requirements and the complexity of data collection. He noted that EU importers will prioritize goods with lower emission intensities, which could heighten competition.
To navigate these new regulations, Dr. Nam urged Vietnamese businesses to proactively understand CBAM, review their production processes, and build comprehensive greenhouse gas emission databases. He emphasized the importance of conducting emission inventories and measuring emission intensities for each product, enabling effective planning for emission reductions, such as utilizing renewable energy and optimizing technology.
Tạ Văn Thuận, Head of International Business at Cà Mau Petroleum Fertilizer Joint Stock Company (PVCFC), shared his company's commitment to reducing emissions. PVCFC, a member of the Vietnam National Oil and Gas Group, aims to cut CO₂ emissions by 80,000 tons per year before 2030 and 220,000 tons per year by 2050. The company is implementing various solutions, including enhancing CO₂ recovery from emissions, experimenting with low-emission hydrogen production, and utilizing renewable energy sources like solar power and biomass. PVCFC also plans to launch at least two new low-emission fertilizer products by 2050, focusing on environmentally friendly materials.
According to Ho Thi Quyen, compliance with CBAM is not solely the responsibility of regulatory bodies but requires proactive investment from businesses. She stressed that companies need to invest in clean technologies, improve production processes, establish emission management systems, and enhance their reporting and verification capabilities. "The transition to green production is crucial not only for individual businesses but also impacts the entire supply chain. When one supplier reduces emissions, other businesses in the chain also move closer to achieving net-zero greenhouse gas emissions by 2050," Quyen highlighted.
The conference served as a vital platform for discussing the potential of CBAM to diversify Vietnamese exports and strengthen their position in the European market, which is increasingly focused on environmental sustainability. While the transition poses challenges, particularly for carbon-intensive industries, it also presents opportunities for pioneering companies with strategic approaches. These firms stand to not only mitigate risks but also gain a competitive edge in the global green economy.
In the first quarter of 2025, Vietnam's total import and export turnover reached $202.52 billion, marking a 13.7% increase compared to the same period in 2024. Exports to the EU alone amounted to $13.7 billion, a rise of 12.7% compared to the previous year, underscoring the EU's importance as a key and potential market for Vietnam.
As the world shifts towards sustainable practices, the successful adaptation to CBAM will be crucial for Vietnamese businesses looking to thrive in the European market. The concerted efforts from both the government and private sectors will play a pivotal role in navigating this transition and ensuring compliance with international standards.
