The UK-Vietnam Free Trade Agreement (UKVFTA), along with other new-generation free trade agreements (FTAs), is promoting green trade in Vietnam through restructuring supply chains towards adaptation and sustainability.
[caption id="attachment_605670" align="alignnone" width="1280"]
Farmers harvest oranges in an organic garden in Cao Phong district, Hoa Binh province. Photo: Ly Ly/VNS[/caption]After severe disruptions caused by the COVID-19 pandemic, the US-China trade war, the Russia-Ukraine conflict and global climate change, green trade is taking shape and becoming an inevitable trend of global trade.
Deputy Minister of Industry and Trade Dang Hoang An said commitments on sustainability, environment and labor, and new-generation FTAs, including the UKVFTA, have created a push for Vietnam to move towards green trade to catch up with global sustainable development trends.
Vietnam is in the process of green transition to fulfill international commitments on sustainable development, energy saving and climate adaptation.
Green commitments create opportunities for businesses to participate in the supply chain with the UK by creating environmentally friendly products and goods that meet standards related to environmental protection and climate change adaptation, Mr. An said.
The Deputy Minister also noted that the move towards carbon neutrality will shift the comparative advantage of exports from labor- and energy-intensive sectors to innovation and technology-based sectors.
Vietnam's Trade Counselor in the UK Nguyen Canh Cuong said that the potential to promote green trade with the UK is huge.
According to Mr. Cuong, the prospect of exporting steel and iron products produced using decarbonization technology to the UK is very bright. The UK is also a pioneer in promoting the decarbonization process for the steel industry.
There is also an opportunity to increase exports of energy-saving appliances and equipment such as freezers, washing machines and lamps, environmentally friendly products and products made from recycled materials.
For agricultural products, green trade brings opportunities for organic products. Mr. Cuong said that organic food is an advantage for Vietnam and a trend for British consumers.
He also said that the two countries have great potential to enhance cooperation in green transformation, including renewable energy development, sustainable agricultural production, waste treatment, emission reduction in transport and green finance.
Building a sustainable chain
[caption id="attachment_605692" align="alignnone" width="665"]
Dried cinnamon bark products of Son Ha Spices Company Limited, Van Yen district, Yen Bai province. Photo: Vu Sinh/VNA[/caption]Research results by Associate Professor, Dr. Tu Thuy Anh of the Foreign Trade University published earlier this year indicate that global trade is moving towards sustainable development, forcing Vietnamese enterprises to adjust their business strategies to participate deeply in new value chains. This trend is further promoted by the implementation of new-generation FTAs, which incorporate regulations on environmental protection and sustainable development.
Another trend in global trade is the restructuring of supply chains towards adaptation and sustainability, emerging after the COVID-19 pandemic caused severe disruptions.
“Consumer and commercial behavior is changing. Sustainability and efficiency are evolving,” the study found.
These trends are bringing challenges but also opportunities for Vietnam to participate deeply in the global supply chain and develop sustainably.
The UK is a world leader in environmental protection, emissions reduction and sustainable development, including green and fair trade policies.
According to Ms. Nguyen Khanh Ngoc, Deputy Director of the European - American Market Department, Ministry of Industry and Trade, pursuing a green strategy will create a competitive advantage for businesses.
She believes that Vietnamese enterprises need to innovate technology and switch to green production to improve competitiveness.
Accordingly, Vietnamese goods must first meet the UK’s strict standards on food hygiene and safety, quality, and transparency of origin in order to take advantage of the UKVFTA. British consumers are particularly interested in corporate social responsibility and manufacturers’ efforts to protect the environment.
A report on the impact of UKVFTA on Vietnam's exports to the UK by researchers from the University of Economics, Vietnam National University, Hanoi, shows that transparent commitments on quality standards are an essential driving force to improve production towards meeting market requirements for Vietnam's export goods.
“The UK market’s product standards are very strict. Products wishing to access the UK market must meet the requirements of information transparency and ensure that they are produced using sustainable development processes. Vietnamese businesses wishing to enter the UK market must ensure at least the following three issues: standardization, health and environment,” the report said.
Once the product is qualified for the UK, which is a highly demanding market, the opportunity to increase exports to other markets will open up significantly.
With 16 FTAs, Vietnam is one of the most open economies in the world, creating great opportunities to build new supply chains with partner markets.
Sustainability will help increase the value and build sustainable brands for Vietnamese products and businesses. However, the most important thing is the change in thinking that green living is not a cost but an investment, according to Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department, Ministry of Industry and Trade./.
Ly Ly
Comment (0)