VN businesses need to embrace green practices to export to EU
Vietnamese exporters must foster "sustainable and responsible corporate behaviour" throughout their global value chains to boost exports to the EU, experts have said.
Speaking at the Vietnam ESG Investor Conference in HCM City last week, Daniël Stork, the Netherlands consul general, said the EU is adopting new rules and regulations to support its climate ambitions such as the Carbon Border Adjustment Mechanism (CBAM).
"The legislation will apply within the EU, but its effect will extend beyond the EU’s borders, even to Vietnam," he said.
"We work together with the Vietnamese government as well as international partners present here," he added.
The mechanism is a real game changer in the way companies operate throughout their global supply chain, experts noted.
It would impose environmental, social and governance rules for imports, they said.
For Vietnamese exporters to the EU, it means there would be strong incentives to invest in ESG to enjoy low tariffs and easy access to the market, they added.
