Green exports: The new rules of the game in global trade

In the context of international trade shifting strongly towards sustainable development, environmental standards, emissions, and supply chain responsibility are increasingly becoming crucial conditions for market access.

In an open economy like Vietnam's, green exports are no longer an option but are becoming the new "rules of the game" for businesses to participate deeply in the global value chain.

Experts believe the most significant milestone is the European Union's (EU) official launch of the Carbon Border Adjustment Mechanism (CBAM) on January 1, 2026. Under this mechanism, products imported into the EU must declare their carbon emissions during production and bear emission costs equivalent to those of goods produced within the EU. The EU's goal is to prevent "carbon leakage," where businesses relocate production to countries with lower environmental standards.

However, for many developing economies, including Vietnam, CBAM means that environmental standards are gradually becoming a new form of trade barrier. According to assessments by relevant authorities, approximately 11 export sectors in Vietnam could be directly and indirectly affected by this mechanism. Industries such as aluminum, cement, iron and steel, and chemicals are among those directly impacted, while others such as electronics, textiles, processed foods, paper, and plastics are affected through the supply chain.

Notably, this trend is not limited to the EU; the UK is expected to implement a similar mechanism from 2027, while many other developed economies are also researching policies related to carbon emissions and sustainable trade. Alongside this are a series of new regulations on sustainable development, such as the Corporate Sustainability Reporting Directive (CSRD) and the Supply Chain Sustainability Assessment Directive, which require businesses to be transparent throughout the entire value chain, from carbon emissions and labor conditions to the origin of raw materials.

Mr. Tran Ngoc Quan, Commercial Counselor and Head of the Vietnamese Trade Office in Belgium and the EU, stated that in 2026, the EU will strengthen border inspections, tighten food safety regulations, and continue to promote trade defense measures, especially for the steel industry. These actions indicate that international trade competition is entering a new phase, where sustainability standards are increasingly becoming a decisive factor in market access.

Therefore, Vietnam's foreign market development strategy is gradually adjusting towards linking export growth with sustainable development standards. According to Mr. Do Quoc Hung, Acting Director of the Foreign Market Development Department ( Ministry of Industry and Trade ), current market development should not only focus on maintaining export growth rates, but also play a leading role in opening up new growth opportunities and consolidating a sustainable foundation for exports.

Besides maintaining traditional markets such as the United States, the EU, China, and Japan, Vietnam is also focusing on exploring potential areas such as the Middle East, South Asia, Africa, and Latin America. These markets offer significant growth potential, but accessing them requires businesses to thoroughly understand business practices, logistics systems, and trade payment risks. Without careful preparation, market expansion opportunities can quickly turn into risks.

Ms. Nguyen Hoang Thuy, Vietnam's Trade Counselor in Sweden and concurrently responsible for the Nordic region, stated that: Green transformation has become a consistent direction in the EU's development strategy. Regulations on traceability, circular economy, and emission reduction are forcing businesses to green their entire production chain, from raw materials to final products.

Because green transformation is not only a market requirement but also a process of restructuring the supply chain. When input materials are greened, exported products will meet higher standards and reduce the risk of being excluded from the market. For example, the project by the Swedish company Syre is developing a circular polyester recycling model. If implemented in Vietnam, the project would not only help reduce emissions but also create a sustainable source of recycled materials for the textile industry, thereby helping businesses better meet the new requirements of the European market.
However, the gap between policy direction and the implementation capacity of businesses remains quite large. Many businesses still view green exports as simply a product-related issue, while in reality, it is a comprehensive preparation process encompassing the entire value chain. Green exports must begin at the source of raw materials, investing in technology for production, harvesting, processing, and transportation.

Another obstacle is the reluctance to invest in sustainability standards due to high initial costs and long payback periods. Many businesses, after achieving green certifications, believe they are sufficient to access the market. However, this is an incomplete understanding because even with certification, shipments to developed markets like Europe or Japan can still undergo very strict independent inspections, especially regarding chemical residue levels. If a shipment fails to meet the requirements, the reputation of the business, and even the entire industry, can be affected.

From a management perspective, Mr. Do Quoc Hung believes that the formation of green production clusters or green export zones will create production spaces that meet the environmental, emission, and labor standards of major markets. Notably, the proposal to develop a "Transnational Standard Set" with the EU and the UK would help Vietnamese businesses access standards right from the product design stage. If implemented, this would be a breakthrough; instead of simply following standards, businesses would proactively integrate standards into their production chains.

Looking at it more broadly, the story of green exports is not only a market requirement but also linked to the long-term development strategy of the economy. As environmental standards increasingly become mandatory conditions in international trade, proactively transitioning to sustainable production models will help businesses maintain market share, enhance product value, and improve competitiveness.

Source: Tin Tuc News