Seven major export manufacturing industries will be directly affected by CEAP

ANTD.VN - Vietnamese goods exported to Europe (EU) will be affected by the EU Circular Economy Action Plan (CEAP).

Businesses must transition to sustainable production to meet EU market demands

CEAP is part of the European Green Deal. Speaking at the seminar “EU Circular Economy Plan (CEAP) and its implications for Vietnamese businesses” organized by Industry and Trade Magazine on November 27, a representative of the Ministry of Industry and Trade said that CEAP will impact 7 main sectors, including: electronics, information technology, batteries, packaging, plastics, textiles, footwear, etc.

CEAP's core regulation concerns eco-design and sustainable products. This regulation has been in effect since July 2024.

Mr. Do Huu Hung - Department of European - American Markets (Ministry of Industry and Trade) said that this new regulation of the EU could affect some of Vietnam's key export sectors, including textiles and footwear, plastic products and packaging.

“These regulations are very complicated, even we ourselves see that. If we assess the impact now, we can first say that the EU regulations in CEAP will directly impact Vietnam's exports.

First, we can see that products that do not meet EU standards such as those related to digital product passports will likely not be able to penetrate the EU market, customs will not allow clearance" - Mr. Do Huu Hung said.

However, these regulations can also create certain opportunities such as new customer bases and in the long run, reduced costs.

Sharing the same view, Dr. Mai Thanh Dung - Deputy Director of the Institute of Strategy and Policy on Natural Resources and Environment, Ministry of Natural Resources and Environment, commented that CEAP regulations will have a great impact on countries that have long participated in the European market as well as those that are about to enter the European market. Vietnam is one of those countries.

“The plan is also a huge challenge for Vietnamese businesses in the coming time. Because we need to make a lot of efforts to achieve the conditions set out in the plan, especially in the seven sectors mentioned above: plastics, food processing, textiles, agriculture, batteries, transportation equipment, electronics industry…

In the coming time, businesses need to make great efforts to continue developing their export activities in production and business activities" - Dr. Mai Thanh Dung said.

From a business perspective, Mr. Nguyen Xuan Duong - Chairman of the Board of Directors of Hung Yen Garment Corporation acknowledged that the new EU regulations pose both challenges and opportunities for businesses.

After the EVFTA agreement took effect, Hung Yen Garment’s export turnover to the EU doubled, from about 20 million USD to about 40 million USD. However, the textile and garment industry has to face regulations on origin of import markets.

“If we do not meet the requirements of origin, we cannot enter the EU under EVFTA and enjoy tariff benefits. In the past, most of the imported raw materials came from China, Taiwan (China) and some other countries not in EVFTA. This is a huge challenge. However, to assess, the textile and garment industry has also grown significantly, contributing to the overall export turnover of the whole country,” said Mr. Nguyen Xuan Duong.

According to experts, although the circular economy brings great economic efficiency, it has not received the attention it deserves. If businesses can implement circular economic processes or solutions well, they will achieve better efficiency in their production and business than other businesses.

Because businesses save input materials, save energy, extend product life cycles, reduce waste...

According to the representative of the Ministry of Industry and Trade, to meet the requirements of the EU market in general and CEAP regulations in particular, enterprises must invest in production, change production and management processes, increase investment costs... But this is a trend that manufacturing enterprises must follow.

Mr. Do Huu Hung said that the EVFTA free trade agreement between Vietnam and the EU is a very positive lever for both trade and investment between Vietnam and the European Union.

After 4 years of the agreement taking effect, two-way trade turnover between Vietnam and the EU reached nearly 64 billion USD, which means there was huge growth.

Regarding export items to the EU, thanks to the competitive advantage of EVFTA in terms of tariffs, most of Vietnam's export items have achieved good growth. Among them, industrial product groups such as machinery and equipment, means of transport, chemical product groups and especially agricultural and aquatic product groups have also achieved high growth.

In terms of investment, thanks to EVFTA, the EU has become the sixth largest investor in Vietnam with large FDI capital. European businesses currently invest in about 2,500 projects with a total registered capital of around 28 billion USD.

In particular, EVFTA not only creates conditions to attract European investors but also non-European investors to Vietnam, taking advantage of the free trade agreement between Vietnam and the EU to bring goods produced by their factories in Vietnam to the European market.

Source: https://www.anninhthudo.vn/bay-nganh-san-xuat-hang-xuat-khau-chinh-se-bi-anh-huong-truc-tiep-tu-ceap-post596710.antd