EU Green Deal and Vietnam's export: Impacted sectors
21/12/2023 104In theory, European Green Deal covers all economic sectors in the EU, thus, in the long run, all Vietnam’s exported products shall be impacted by EU green policies in various levels, as per the roadmap and in different ways.
In the first implementation phase, EGD’s policies, measures focus on sectors that the EU considered as the main factors causing environment depression, climate change and/or natural resource abuse. Specifically:
- In production: Iron and Steel, Aluminum, Cement, Fertilizers, Electricity and Hydrogen are categorized to be the group with the biggest portion of industrial emissions in the EU (94%); besides, there are also high-potential-risk products relating to many industries (like chemicals, battery, etc.)
- In consumption: Food, Building, Textile and Transport are in turn the groups negatively affecting the EU environment (and respectively agriculture, forestry, fishery, food processing, wood and wood products, construction materials, transport vehicles, etc.)
Given above prioritized aspects and EGD’s green policies, strategies identified so far, Vietnam’s following exported products shall be subject to various EU green standards:
- Electrical, electronics, information technology products, machinery, equipment, and related components;
- Agricultural products (especially coffee, cashews, pepper, cocoa, meat, etc.), seafood, wood and wood products;
- Foods of all kinds (especially organic foods)
- Textile and footwear;
- Chemicals, fertilizers, batteries;
- Iron and Steel, aluminum, cement.
- Product packaging (especially packaging of food and chemicals, etc.)
Table – Some policies in European Green Deal impacting Vietnam’s exports
No |
EU policies, measures |
Impacted areas |
I |
Farm to Fork Strategy (F2F) |
|
1 |
Proposal for Regulation on the sustainable use of plant protection products |
Agricultural products such as fruit, vegetables, tea, coffee, spices, etc. |
2 |
Regulations on veterinary medicinal products |
Products of animal origin |
3 |
Revision of Food Contact Materials legislation |
All kinds of food |
4 |
Revision of the Regulation on Food Information to Consumers |
All kinds of food |
5 |
EU Code of Conduct on Responsible Food Business and Marketing Practices |
All kinds of food |
6 |
Revision of EU legislation on animal welfare |
Animals and products of animal origin |
7 |
Regulation on organic production and labelling of organic products |
Agricultural products, food |
II |
Circular Economy Action Plan (CEAP) |
|
1 |
EU Strategy for sustainable and circular textile |
Textile products |
2 |
Regulations on empowering consumers for the green transition |
All kinds of products |
3 |
Eco-design of sustainable products regulation |
All processed products except food, pharmacy, kinds of animal feeds |
4 |
Chemicals strategy for sustainability |
Cosmetics, toys, detergents, childcare articles, interior furniture, textile and food contact materials, etc. |
5 |
Green Claim Directive |
Textiles, food, electronic products, etc. |
6 |
EU waste framework directive revision |
Food, textile products, footwear |
III |
EU biodiversity strategy |
|
1 |
EU Deforestation-Free Products Regulation (EUDR) |
Cattle, cacao, coffee, rubber, palm oil, soy, wood and related products (leather, chocolate, interior furniture, etc.) |
IV |
Fit for 55 Package |
|
1 |
Carbon border adjustment mechanism (CBAM) |
Initial stage: Iron and Steel, Cement, Fertilizers, Aluminum, Electricity and Hydrogen |
Source: Summary of VCCI Research Group
In the future, coupled with European Green Deal implementation roadmap, Vietnam’s other exported goods shall also have to face the EU’s new green policies, measures when exporting to this market.
Source: Report "EU Green Deal and Vietnam's Exports - The case of the agricultural, food and textile industries" – Center for WTO and International Trade
- Ways of European Green Deal’s impacts on Vietnam’s exports
- EU Green Deal and Vietnam's export: Challenges of awareness change and enhancement
- EU Green Deal and Vietnam's export: Challenge in capability of response, compliance
- EU Green Deal and Vietnam's export: Challenge in the capacity of paying compliance fees