Vietnam drives green industrial and agricultural demand amid carbon regulations

Vietnam is seeing increased demand for green industrial real estate and sustainable practices driven by international environmental standards and domestic policy shifts.

The European Union’s Carbon Border Adjustment Mechanism (CBAM), set for official implementation in early 2026, is impacting Vietnamese manufacturers within global supply chains. CBAM targets carbon leakage by attaching costs to the embedded emissions of imports such as steel, aluminum, cement, fertilizers, electricity, and hydrogen. This requires businesses to improve energy management, emission tracking, and access to low-carbon energy sources. Savills Vietnam notes that multinational corporations are increasingly integrating ESG and carbon requirements into their site selection and procurement strategies, favoring industrial parks that offer renewable energy and waste management solutions.

Simultaneously, in Hanoi, authorities are promoting green technology and circular economy models, particularly within the agricultural sector. The city is focusing on high-tech, ecological, and low-emission agriculture to ensure sustainable growth. This includes the development of biodegradable packaging and more efficient use of land, water, and energy to reduce waste and post-harvest losses.