Green transition becomes vital for Vietnamese industrial zone competitiveness

Vietnamese businesses are facing increasing pressure to adopt green standards and ESG (Environmental, Social, and Governance) criteria to maintain competitiveness in global supply chains. At a recent workshop organized by the Vietnam Chamber of Commerce and Industry (VCCI), experts highlighted that green transformation has shifted from a matter of environmental compliance to a critical competitive requirement.

A major challenge identified is the lack of standardized emission data. With the European Union’s Carbon Border Adjustment Mechanism (CBAM) set to implement carbon taxes on imports, accurate emission data is becoming a mandatory ‘passport’ for goods entering the EU market. If exporters cannot provide verified data, importers may apply default emission rates, leading to higher costs.

Experts noted several gaps in ESG implementation, including the lack of a unified institutional framework, insufficient industry-specific criteria, and inconsistent data monitoring systems. To remain viable, businesses must integrate green practices and data management into their core strategies rather than treating them as short-term compliance tasks.