Exports face growing pressure to go green
Increasingly stringent environmental standards in major markets are compelling Vietnamese businesses to transform their production methods ensure data transparency and track the origins of their raw materials to maintain their competitiveness
The pressure on Vietnamese exports to become environmentally friendly is intensifying, particularly for goods entering the European market. A recent seminar in Ho Chi Minh City highlighted the need for supply chain traceability, emissions data transparency, and adherence to environmental standards, which are becoming crucial for the competitiveness of Vietnamese exports.
The EU's green regulations, including the Carbon Border Adjustment Mechanism and the EU Deforestation Regulation, impose stringent requirements on exporters, necessitating robust compliance capabilities and solid data systems. These rules apply to six categories of goods, such as iron and steel, aluminium, cement, fertilisers, electricity, and hydrogen, with the latter entering its definitive phase in 2026.
Similarly, the EU Deforestation Regulation requires due diligence and traceability for commodities like coffee, rubber, timber, cocoa, soybeans, palm oil, and cattle, ensuring products are not linked to deforestation. Vietnamese businesses must adopt greener production practices and be able to prove their environmental credentials to remain competitive in global trade.
Beyond regulatory compliance, international buyers are imposing stricter expectations, requiring transparency in factory databases, ethical business practices, labor rights protection, and adherence to environmental protection standards. Vietnam's trade with major export markets, such as the United States, the EU, and Japan, is growing, with exports reaching $463.7 billion in the first nine months of 2026.
However, maintaining this growth requires exporters to address specific environmental and supply chain requirements in these markets.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
