July 01, 2025 | 09:00 GMT+7

Aluminum industry must build internal strength: expert

Vũ Khuê -

The EU's CBAM imposes carbon tariffs on high-emission imports, including aluminum, steel, electricity, cement, and fertilizers.

(Illustrative image)
(Illustrative image)

As global geopolitical and economic uncertainties intensified, their ripple effects are being felt beyond the aluminum sector, impacting a wide spectrum of manufacturing industries in Vietnam.

Speaking at a recent forum on Vietnam's aluminum industry business, Ms. Pham Thi Ngoc Thuy, Director of the Office of the Private Economic Development Research Board, suggested that closer attention should be paid in the context of ongoing geopolitical and trade tensions, and strategic competition in the world.

Although these developments have not yet directly affected Vietnam’s aluminum exports—especially to markets like the United States where direct trade remains limited—their indirect effects on global supply chains are being felt.

Ms. Thuy said that European regulatory reforms are expected to significantly shape a future of the aluminum industry. Several impactful measures such as the Carbon Border Adjustment Mechanism (CBAM) which imposes carbon tariffs on high-emission imports, including aluminum, steel, electricity, cement, and fertilizers.

The EU Deforestation-Free Regulation (EUDR) will ban products linked to deforestation, requiring legally verified land use—a major consideration for Vietnamese exports such as agricultural goods and furniture.

By 2027, additional regulations on supply chain due diligence and sustainability reporting will follow, affecting even complex sectors such as logistics, aviation, and seaport operations. These evolving frameworks will compel supply chains involving European partners to reassess compliance strategies and adapt swiftly.

Ms. Thuy also noted that China is also one of the economies with a major influence on the current global landscape, and this certainly holds true for the aluminum industry. Starting from late 2024 into early 2025, China has implemented its national-level green label, applying it to seven key high-emission product groups—including aluminum, batteries, steel, textiles, and fertilizers. China will use this national green label to assess and certify businesses that meet the standards.

In the context of global geopolitical instability, the Party and the Government have implemented breakthrough policies, helping businesses stand firm against the "headwinds".

According to Ms. Thuy, the issuance of Resolution 68-NQ/TW by the Politburo  serves as a driving force for the development of private enterprises. This is because private enterprises have never before been so strongly recognized and valued for their proper role and contribution.

Alongside this is the Politburo's Resolution 57-NQ/TW on breakthoughs in science and technology development, innovation and digital transformation, which is not only aimed at scientists but is also closely linked to the operations of businesses.

Furthermore, Resolutions 68 and 198 of the National Assembly have emphasized that businesses will receive 2% interest rate support on green credit if they borrow for investments in ESG, emission reduction, and other similar initiatives.

 

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