Vietnam businesses must implement green practices to expand export to EU

Experts said at the Vietnam ESG Investor Conference in Ho Chi Minh City that Vietnam businesses must implement their “sustainable and responsible corporate behavior” in order to expand exports to the European Union (EU) countries.

At the conference, Daniël Stork, the Netherlands consul general introduced the new rule the EU has adopted in tackling climate change issues like the Carbon Border Adjustment Mechanism (CBAM).

According to Sirpa Jarvenpaa, director of the Southeast Asia Energy Transition Partnership, the CBAM aims to tackle “carbon leakage”, referring to firms moving their production from the EU to places with less stringent emissions regulations to avoid carbon pricing and gain a competitive advantage.

The mechanism will initially apply within the EU in October 2023, “but its effect will extend beyond the EU’s borders, even to Vietnam,” Stork said.


About Kanlayakorn Pengrattana

Kanlayakorn 'Princess' Pengrattana is a freelance writer at ScandAsia.

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