The implementation of the EU Green Deal is an immediate necessity for enterprises.

DNHN - In the Workshop "EU Green Deal Impacts Vietnam's exports: What businesses need to know" that was held on November 16, VCCI also made this remark.

With the assistance of the FNF Institute (Federal Republic of Germany), the Vietnam Confederation of Commerce and Industry (VCCI) organised the workshop to assist exporting and manufacturing companies in understanding, complying with, and adapting to green standards within the framework of the EU Green Deal.

88% to 93% of exporting companies and affiliated organisations are unaware of the EU Green Deal.

At present, the "green transition"—the construction of an economy characterised by minimal emissions, efficient and cost-effective utilisation of natural resources, and the prevention of ecosystem degradation—is and will continue to be an unavoidable worldwide trend. The European Union (EU) has emerged as a highly engaged region globally in green transformation initiatives, particularly since the inception of 2020 when the EU Green Deal (EGD) was adopted and put into effect.

The EU's Package of Framework Policy Initiatives, known as the Green Deal, endeavours to transform the European Union into a region devoid of greenhouse gas emissions by 2050 while reducing reliance on natural resources for economic development. The progressive enforcement of the Green Deal objectives by the European Union is and will continue to directly influence commercial operations within or about the EU market, encompassing the manufacturing and exportation of goods from Vietnam to the EU.

Mr. Nguyen Quang Vinh, vice president of the Vietnam Confederation of Commerce and Industry (VCCI), commented at the conference: "The European Union, being the market with the second largest purchasing power worldwide, has consistently ranked first in terms of export turnover of Vietnamese goods. Despite the potential temporary decrease in demand caused by the prevailing challenging economic conditions, the European Union remains a highly promising market for Vietnamese exports, particularly in light of the prospects presented by the Vietnam-EU Free Trade Agreement. The European Union market will comprise 12.6% of Vietnam's global export turnover in 2022, representing a 16.7% increase over 2021. This growth rate is considerably greater than the overall 10.5% increase observed across all markets. With this stance, the European Union's green transformation initiatives will undoubtedly have a substantial impact on a substantial portion of the nation. Vietnamese merchandise.

"Virginal manufacturing and exporting enterprises have an immediate need to comprehend, monitor, and adapt to policies about their products that fall under the auspices of the EU Green Agreement, given the aforementioned circumstances." "South is undertaking green initiatives to maintain and expand sustainable exports, particularly on the EU market, and many other markets are following suit," Mr Vinh remarked.

According to a rapid survey carried out in August 2023 by the Vietnam Federation of Commerce and Industry, 88-93% of businesses and other relevant entities have either never heard of the Agreement or have only been briefly informed about it. Green Agreement or the EU's implementation to date of specific policies and regulations implementing this Agreement.

Numerous green policies of the European Union that have an immediate impact on Vietnam's exports to this market have been promulgated, drafted, or are imminently awaiting approval. The "From farm to table" Strategy, which consists of a series of policies to restrict the use of agricultural chemicals, packaging, labelling, and green traceability of imported products, is one example. password, please. The 35 action groups comprising the processed and manufactured goods group (including electronics, information technology, plastics, and textiles) are coordinating the implementation of the EU's new Circular Economy Action Plan. Additionally, certain policies have a direct impact on particular products imported into the EU, including the Border Carbon Adjustment Mechanism (CBAM), which targets iron, steel, aluminium, cement, coffee, cocoa, and wood, and the Anti-Deforestation Regulations (EUDR), which apply to iron, steel, aluminium, and cement, among others.

From now until 2030, and particularly for the EU, the list of green policies that have a direct impact on goods exported to the EU will be expanded in tandem with the EU's progress towards achieving the objectives of the EU Green Deal through 2050.

Director of the Centre for WTO and Integration (VCCI) Ms Nguyen Thi Thu Trang told reporters: "Based on our review to date, which includes nearly sixty actions to implement the EU green agreement, we have determined that it impacts Vietnam's export businesses from three primary perspectives. The first is to raise environmental standards for manufactured and exported Vietnamese goods to the EU. The second objective is to increase the green financial responsibility of certain companies whose products imported into the EU are likely to cause environmental pollution during production. In essence, this initiative enhances the level of responsibility for the provenance of goods, as well as requirements concerning the environmental repercussions of product utilisation, disposal, and production processes.

For businesses, adhering to green standards is an unavoidable trajectory.

Experts and delegates exchanged and deliberated on business practises and concerns that require focus when implementing green transformation about the production and export of goods to the European Union, as well as the expansion into other developed export markets, during the Workshop.

As stated by Ms. Trang, the EU Green Agreement encompasses a multitude of elements and is not merely a set of rigid green standards or a comprehensive, detailed, and exhaustive road map for the EU's green transformation. Policy is undergoing rapid change as a result of numerous EU actions. Hence, for Vietnamese enterprises that are anticipated to be impacted by environmentally friendly policies and standards as part of the EU green agreement, staying informed about EU developments and endeavours that pertain to the agreement's production and export of goods to this market is primordial.

Secondly, in anticipation of the implementation and enforcement of certain green policies within the European Union, businesses must make the necessary preparations to adhere to this standard. Because we are still unable to meet the EU's enhanced green standards with our current standards, this will undoubtedly be a challenge for which we must both plan and take action. Adjust to react.

Ms. Trang concluded by stating that the implementation of EU green standards is more than simply a matter of complying with EU requirements; it is also a response to market trends and customers' awareness of green consumption. EU products are also sold worldwide.

"Ms Trang shared that it will be advantageous for companies to engage in green transformation proactively, not only to enforce mandatory standards but also to capitalise on market prospects and cater to the demands of environmentally conscious consumers. This will create a lasting business opportunity for production and export to developed countries and the European Union."

Prof. Vo Tri Thanh, former deputy director of the Central Institute for Economic Management Research and senior expert, told reporters: "For enterprises to achieve genuinely sustainable development, adherence to established benchmarks is imperative." Companies are inevitably moving in the direction of green standards. We should recognise, from the standpoint of a developing company, that this is an investment in sustainable development and not a financial burden to comply with. viable, to conduct successful business."

A representative from a wood import-export company additionally addressed the press at the conference: "In my opinion, green standards are an obligation for companies and a prerequisite for importers, particularly those originating from the European Union." By way of illustration, green standards may encompass voluntary criteria such as worker and environmental responsibility, as well as traceability and input material concerns, in the context of wood industry products. Our understanding of these matters is not entirely novel.

"Considerably challenging for export-oriented enterprises such as ours is satisfying the cost-related demands of foreign partners." Costs and change requirements are inextricably linked to green standards. Small and medium-sized businesses face significant challenges when it comes to complying with the necessary licences for new technologies. A business representative stated, "However, to move forward methodically as an export enterprise, one must have a clear vision and direction."

Despite being an internal EU policy package, the EU Green Deal affects Vietnamese exports. As the majority of these policies are still in draught form, it remains challenging for businesses to identify them. Furthermore, communication is difficult due to the interconnected nature and constant evolution of these green standards. Conducting business information research is challenging.

According to Ms Trang, a representative of the Centre for WTO and Integration, the following is what we anticipate: "We anticipate that state management agencies tasked with regulating the import and export activities of businesses, particularly Vietnamese business units operating in EU markets, will furnish businesses with timely information and updates regarding developments and specific green policies." Simultaneously, we anticipate that state management agencies will be able to counsel and assist businesses as they adopt and implement EU green standards. Particularly concerning newly introduced green standards that present significant obstacles for enterprises, it is my sincere hope that state management agencies will collaborate, dialogue, and seek advice from competent EU authorities to devise the most optimal approach for businesses to adhere to EU standards.

Bao Trinh