EU Green Deal and Impacts on Vietnamese Exports
The European Union (EU) is one of the most important markets for Vietnam’s exports. To continue to effectively and sustainably exploit this market, understanding and fully complying with the bloc's green regulations is especially important for Vietnamese manufacturers and exporters as well as relevant authority units.
In order to support manufacturing and exporting businesses to learn, comply and adapt to green standards within the framework of the EU Green Deal, the Vietnam Chamber of Commerce and Industry (VCCI), with the support of the Friedrich Naumann Foundation for Freedom (FNF) in Vietnam organised the Conference 'EU Green Deal - Impacts on Vietnam's Export' in Hanoi on 16 November 2023.
The EU Green Deal (EGD) is a set of EU policy initiatives aimed at reducing greenhouse gas emissions and minimising the use of natural resources in economic development. Announced by the European Commission on 13 December 2019 and approved by the European Council on 15 January 2020, it is aimed to implement the goal of building the EU into an emissions-neutral region by 2050. From a production and business perspective, the adoption and gradual implementation of specific policy goals in the EGD means that business activities on or with the EU market, including import, sale, consumption and disposal of goods from outside the EU market will have to meet higher green requirements.
The EU is currently one of Vietnam's largest export markets, with an increasing growth rate under the positive and pervasive impact of the EU-Vietnam Free Trade Agreement (EVFTA). To continue to effectively and sustainably exploit this market, understanding and fully complying with green regulations in the EU market is especially important for Vietnamese manufacturers and exporters as well as relevant authority units.
The EU, a huge market, always leads among the importers of Vietnamese goods. As such, monitoring and adapting to policies within the framework of the EU Green Deal is an urgent requirement for Vietnam's manufacturing and export businesses to maintain and develop sustainably in the EU market as well as ones that are also making green transition actions in the same direction.
In the final days of 2023, Vietnam's growth momentum would be restored more strongly with an expected growth rate of over 5%. In addition to foreign direct investment, increasing public investment, and promoting private consumption, strengthening integration into the global value chain and achieving sustainable development goals is extremely necessary.
A quick survey conducted by the Vietnam Federation of Commerce and Industry in August 2023 showed that a significant proportion of businesses and other related entities have never known or only briefly heard of EGD or specific policies and regulations implementing EGD that the EU has implemented up to this point.
Meanwhile, many specific EU policies and regulations implementing EGD that directly affect Vietnam's exports to this market have been issued, are taking effect or will take effect in the coming months. next time. At the same time, according to the EU's plan, many other policies and regulations will also be implemented in the near future, with higher standards, covering more types of goods imported into the EU.
Therefore, the current urgent issue for Vietnamese manufacturing and exporting enterprises to the EU is to learn about the EGD, the specific roadmaps of this Agreement, and the specific strategies and regulations that have been issued, about the general impact of EGD on Vietnam's exports to this region as well as about the specific green requirements that the EU sets for different groups and types of goods imported into this Bloc. This will be the basis for businesses to prepare and take appropriate actions to meet EU green requirements and continue exporting to this important market.
To help businesses and related agencies, organisations and units have a complete and accurate understanding of EGD and the effects of this Agreement on the future of Vietnam's exports to the EU, especially in some key export sectors of Vietnam that are subject to many new EGD green standards, with the support of FNF Vietnam, the Centre for WTO and International Trade under the Vietnam Chamber of Commerce and Industry (VCCI) has conducted research and developed the Report 'EU Green Deal and Vietnam's Exports - The case of the agricultural, food and textile industries'. A summary of the report is available for download here.