As global trade increasingly intertwines with climate commitments, the European Union (EU) has emerged as the most decisive player in linking market access with environmental responsibility. According to the report “Trade Promotion Program 2021-2025 and Strategic Orientation for 2026-2030” prepared by the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, major exporting countries are adopting stringent regulations on environment and climate, embedding sustainability standards across their supply chains.

The EU stands at the vanguard of this movement. With the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR), Europe is setting transformative global benchmarks - ones that will inevitably redefine Vietnam’s export trajectory and challenge domestic enterprises to embrace green compliance.

Among these, CBAM offers the clearest example of how Europe is translating climate ambition into trade policy. From October 1, 2023, CBAM entered its transitional phase, requiring importers to report embedded emissions in six product groups: cement, iron and steel, aluminum, fertilizers, hydrogen, and electricity. By January 1, 2026, carbon tariffs will be levied based on verified emissions data, directly linking climate performance with trade competitiveness.

For Vietnamese businesses, the implications are profound. The United States - once a top market - is narrowing due to new reciprocal tariff policy, pushing exporters to view the EU as a stable and strategic alternative. Access to Europe, however, is now governed by strict environmental criteria that function as gatekeepers to trade. As Ngo Chung Khanh, Deputy Director General of Multilateral Trade Policy Department at MoIT, has cautioned that while CBAM currently applies to six sectors, its scope could quickly broaden - making it imperative for all exporters to prepare without delay.

This preparation requires more than superficial adjustments. It begins with rigorous measurement - such as greenhouse gas inventories - to provide a reliable baseline. From there, companies must design emission reduction roadmaps and adopt cleaner technologies in their business operation. Only then can Vietnamese products enter the EU without facing prohibitive carbon tax or reputational barriers.

Vinacontrol Group Corporation (Vinacontrol), Vietnam’s longest-standing inspection, testing and certification body, has placed itself at the heart of this transition. With 68 years of experience across conformity assessment and environmental consultation, and a nationwide network of 40 branches and over 1000 technical experts, the organization is uniquely positioned to translate policy into practice for businesses.

“We are actively studying the EU’s green standards and designing step-by-step roadmaps tailored to each industry’s realities,” shared Ms. Hoang Thi Kim Cuong of Vinacontrol at the seminar: Updates on European Green Standards, Carbon market & Green transition solution for manufacturing enterprise held in August, 2025.

“Take carbon as an example: we have supported hundreds of companies in industries such as steel, textiles, and cement in preparing GHG inventories, compiling CBAM reports, and even redesigning energy systems to reduce both emissions and costs. The critical demand today goes far beyond templates - businesses need a reliable partner to guide them through emission scenarios and cost calculations. Policy can be complex - we simplify it, operationalize it, and make it work for our customers.”

For instance, Vinacontrol recently guided a Vietnamese industrial mechanical fabrication exporter, Huy Minh Corporation, to successfully comply with CBAM requirements for its steel components shipped to the EU. Facing the challenge of reporting embedded emissions to its European importers, Huy Minh partnered with Vinacontrol to conduct a comprehensive greenhouse gas inventory across its production facilities. With the companionship of Vinacontrol, Huy Minh has confidently mastered technologies for calculating emissions throughout its products and production processes. This capability has allowed the business to fully satisfy the environmental requirements, leading to the successful acquisition of high-value contracts with EU clients. Moving forward, the company is well-positioned to expand into other markets that uphold equally rigorous carbon emission standards, demonstrating the tangible benefits of Vinacontrol’s expertise.

Through nationwide workshops, training sessions, and technical bulletins, the organization has been instrumental in raising awareness and building capacity within the Vietnamese business community.

Parallel with CBAM, the EU Deforestation Regulation (EUDR) represents another sweeping shift in bloc’s trade policy - requiring that all products entering the EU market be fully traceable and verified as free from deforestation or forest degradation. Covering key commodities such as timber, coffee, cocoa, rubber, soy, palm oil, beef, and derived products, the regulation will apply to large enterprises from December 30, 2025, and extend to SMEs from June 30, 2026. Without timely preparation, exporters risk having their shipments blocked at EU borders - regardless of product quality or origin - if they fail to meet strict traceability and due diligence requirements.

In the European Commission’s official guidance, certification schemes such as PEFC and FSC are recognized as valuable tools in supporting compliance with the EUDR. While both frameworks are widely accepted, PEFC is increasingly demonstrating its suitability for the practical realities of implementation in Vietnam - offering a more accessible structure, lower deployment costs, and seamless integration into existing supply chains. By embedding sustainability, legality, and due diligence requirements into its Sustainable Forest Management (PEFC-FM) and Chain of Custody (PEFC-CoC) standards, PEFC helps minimize the risk of deforestation-linked materials entering the market.

Vinacontrol is officially designated to provide PEFC certification in Vietnam - and among the very few Vietnamese-owned entities accredited for both PEFC-FM and PEFC-CoC. This uniquely local positioning gives Vinacontrol an edge in understanding the operational realities and traceability challenges faced by Vietnamese producers - particularly SMEs - making it a trusted partner that bridges local constraints with global compliance expectations.

The EU’s new wave of green regulations - spanning carbon pricing to deforestation bans - is redrawing the map of global trade. For Vietnamese exporters, this is more than a compliance challenge; it’s a decisive moment to lead with transparency, innovation, and accountability. Those who adapt early will not only retain access to the EU, but also gain an edge in a world where sustainability is fast becoming the price of entry.