Green transition is rapidly moving beyond an environmental trend to become part of the rules governing international trade. Major markets are imposing increasingly stringent requirements concerning carbon emissions, energy efficiency, raw material sourcing, data traceability, the circular economy, and corporate environmental, social and governance (ESG) responsibilities.
Green standards increasingly incorporated into law
The European Union’s Green Deal has brought a series of new regulations, ranging from sustainable product design to supply-chain responsibility. The Ecodesign for Sustainable Products Regulation (ESPR) has extended requirements to a wide range of product groups.
Notably, the Carbon Border Adjustment Mechanism (CBAM) entered its implementation phase on January 1, 2026, covering six groups of carbon-intensive goods. The EU will continue to review and refine the mechanism in the coming years. By 2030, its scope is expected to expand to all sectors covered by the EU Emissions Trading System (EU ETS).
Pressure to comply with new standards is also spreading to other major markets. The Republic of Korea has incorporated green and ESG standards into law. From 2028, major multinational corporations such as Samsung, LG and Hyundai are expected to make compliance mandatory.
These changes are quickly filtering through to domestic businesses. According to Hoang Quang Phong, Vice President of the Viet Nam Chamber of Commerce and Industry (VCCI), the impact is being felt first in emissions-intensive industries. Businesses must not only meet product quality standards but also demonstrate how their products are made, how much energy is consumed and how much greenhouse gas is emitted.
For businesses operating in industrial parks, this pressure is even more pronounced. They will gradually need to conduct emissions inventories, manage carbon data and improve energy efficiency.
“What businesses need now are practical guidelines and solutions: what needs to be measured; which data need to be standardised; how to select technologies and energy sources; how to mobilise finance; and how to develop an appropriate transition roadmap that both meets market requirements and ensures investment efficiency,” Phong said.
Vietnamese businesses face a dual set of requirements, rather than being affected solely by standards in export markets. According to Nguyen Ba Hai, Deputy Director of the Trade and Investment Promotion Support Centre under the Viet Nam Trade Promotion Agency at the Ministry of Industry and Trade, many major corporations investing in Viet Nam have introduced green-transition requirements throughout their supply ecosystems.
Going “green” is therefore no longer a concern limited to a handful of pioneering businesses, but is increasingly becoming a condition for deeper participation in supply chains. Businesses need to raise awareness, keep abreast of standards in individual markets, and clearly identify the specific requirements applicable to their sectors and products.
National ESG framework needed soon
Although awareness of the green transition is growing, many businesses still do not know where to begin. Limitations in technology, human resources and access to capital remain significant obstacles, particularly for small and medium-sized enterprises.
Many businesses also struggle to identify solutions suited to their scale and specific production characteristics. These bottlenecks mean that proactive efforts by businesses alone are not enough; a sufficiently clear system of policies, information and resources is also required.
Nguyen Ba Hai said the Ministry of Industry and Trade is focusing on helping businesses access information, strengthen their capacity to meet international requirements, and connect with organisations, partners and import markets.
In particular, information concerning the environment, carbon emissions, social responsibility and emerging requirements in international trade needs to be updated fully and promptly. Ministries, sectors, localities and international organisations should coordinate to develop a unified information system, enabling businesses to keep abreast of new requirements and proactively devise appropriate responses.
Businesses, for their part, need to prepare early, beginning by keeping up to date with the requirements of individual markets and clearly identifying criteria relevant to their industries and products. They should then gradually measure emissions, develop data systems and build carbon management capacity. This will provide the foundation for managing emissions reductions and supplying evidence to international partners.
At the policy level, Nguyen Quang Huan, member of the Presidium of the Viet Nam Fatherland Front Central Committee, noted that Viet Nam already has policies and regulations relating to ESG, but these have yet to be integrated into a unified system.
He said the Government should soon introduce a national ESG framework that clearly defines relevant concepts, assessment criteria, verification mechanisms, authorised certification bodies and reporting standards. This gap has become increasingly evident as National Assembly Resolution No. 198 stipulates that businesses implementing ESG practices are eligible for interest-rate support of 2%.
Alongside an overarching framework, criteria tailored to individual sectors should be developed, initially prioritising manufacturing, export industries and essential services. Data systems also need to be standardised, with benchmarking and independent verification mechanisms to ensure transparency in measurement and assessment.
A support ecosystem for the transition should also be developed, linking green finance with technology transfer, workforce training and consultancy services. Energy, finance and banking, export-oriented manufacturing sectors such as textiles and garments, footwear and agricultural products, as well as essential services, could be prioritised for pilot programmes.
Businesses, industry associations and experts should also be closely involved in developing the criteria before they are formally institutionalised.
“ESG is an inevitable path that we must follow. It cannot be avoided if we want to sustain double-digit growth over the long term. Without ESG, we can only achieve short-term development before having to go back and address shortcomings affecting the environment, society and the economy,” Huan stressed.
