EU Green Deal will work for Vietnam's exports

The green policies identified so far under the EU Green Deal are expected to have a strong impact on export product groups such as agricultural products (especially coffee, cashews, pepper, cocoa, meat, etc.), textiles, footwear, iron and steel, cement, electronic products, etc. To increase exports to the EU market, response and adaptation solutions are needed.

For that reason, the Workshop: European Green Deal (EGD) and the impact of Vietnam's exports, conditions that businesses need to know was held on November 16 in Hanoi with the support of the FNF Institute (Germany), Vietnam Federation of Commerce and Industry (VCCI) to support manufacturing and exporting enterprises to learn, supplement and adapt green standard products in the EU Green Agreement.

Speaking at the opening of the workshop, Mr. Nguyen Quang Vinh - Vice President of VCCI said: Building an economy with the ability to emit minimal emissions, use natural resources economically and effectively, and prevent ecosystem degradation, also known as the "green transition" process, is and will be an inevitable global trend. The European Union (EU) is considered one of the most active regions in the world in these green transition efforts, especially with the adoption and development of the EU Green Agreement (European Green Deal) since early 2020.

Mr. Nguyen Quang Vinh - Vice President of VCCI delivered the opening speech at the Workshop

According to Mr. Vinh, the Green Deal is the EU's comprehensive and time-bound program to address the global climate emergency by 2050, while minimizing the use of natural resources in economic development. The EU's gradual implementation of the Green Deal's goals is directly affecting business activities in or with the EU market, including the production and export of goods from Vietnam to this market.

Although the current difficult economic situation may temporarily reduce demand in this market, the EU is still a potential market with the second largest purchasing power in the world. The EU has always been in the top in terms of export turnover of Vietnamese goods, especially with the opportunities from the Vietnam - EU Free Trade Agreement.

Speaking at the workshop, Prof. Dr. Andreas Stoffers - Country Director of FNF Vietnam presented: To respond to global climate change, Europe has introduced the EU Green Deal with many policies to help the region transition to a green economy by 2050. Up to now, some actions have been approved: Farm-to-Fork Strategy or Border Carbon Adjustment Mechanism... which will impact many export industries of Vietnam.

Prof. Dr. Andreas Stoffers - Country Director of FNF Vietnam Institute speaking at the Workshop

By the end of 2023, Vietnam's growth momentum will be stronger, possibly over 5% this year and the following years. FDI investment, public investment, and participation in the global supply chain are very important to enhance Vietnam's self-reliance.

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“To overcome the possible crisis and achieve short-term and long-term goals, the Vietnamese economy needs to strengthen and develop sustainably, in which moving towards green production and green export is an important factor.”
Prof. Dr. Andreas Stoffers - Country Director of FNF Vietnam

Reporting on the impacts of the EU Green Deal on Vietnam's exports, Dr. Nguyen Thi Thu Trang - Director of the WTO Center, VCCI said that although these policies affect many export sectors of Vietnam, up to 88 - 93% of export enterprises and related entities do not know about the EU Green Deal.

According to Dr. Nguyen Thi Thu Trang, the EU Green Deal is a set of 1 main application package for global climate change. Since 2020, there have been 58 actions to implement the EU Green Deal, notably the European Climate Bill, the European Industrial Strategy, the Farm-to-Fork Strategy, the EU Biodiversity Strategy, the Zero Contagion Action Plan, the Action Package "for target 55" in which the CBAM was issued in 2023...

Dr. Nguyen Thi Thu Trang - Director of WTO Center, VCCI

According to the representative of the WTO Center, the EU Green Deal will have three major impacts on Vietnam's exports. These include increasing green standards for goods; increasing green financial responsibility of manufacturers and increasing responsibility for resolution.

On the edge of difficulties, Dr. Nguyen Thi Thu Trang also pointed out certain benefits for businesses. These include green policies presented for implementation step by step, giving businesses time to learn and approach each step. Along with that, the implementation cost does not have to be paid in full immediately. In the long term, businesses will have the opportunity to access green market potential, export sustainably to developed markets, save costs, improve business efficiency in the long term and contribute to the green transformation in Vietnam.

At the Workshop, the guests also listened to and discussed the difficulties and solutions shared by businesses and corporations, represented by the Vietnam Textile and Garment Group and the Vietnam Coffee and Cocoa Association (VICOFA), as well as the main policies from state management agencies.

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