In the afternoon of December 15, 2025, in Hanoi, the workshop titled “Carbon Border Adjustment Mechanism (CBAM): Policy Updates and Potential Response Directions for Vietnam amid Rising Global Trade Tensions” was held with the participation of representatives from government authorities, international organizations, industry associations, and the business community. The event took place in a context where climate policy instruments are becoming increasingly intertwined with international trade, posing new challenges for highly open economies such as Vietnam.
At the workshop, speakers focused on updating the global landscape of CBAM implementation, with the European Union identified as a frontrunner and its full enforcement phase expected to begin in 2026. The discussions highlighted that CBAM is not only a climate policy tool but also one with significant impacts on trade, supply chains, and the competitiveness of exporting countries. For Vietnam, where many industrial sectors are deeply integrated into the EU market, CBAM underscores the urgent need for greater transparency in emissions data, technological upgrades, and changes in production and management practices.
A representative of the Ministry of Industry and Trade shared insights into the measures being undertaken by the Vietnamese Government to proactively respond to CBAM. These include closely monitoring policy developments, conducting domestic consultations, and strengthening dialogue with international partners within the frameworks of EVFTA, UKVFTA, and the WTO. This approach reflects Vietnam’s efforts to strike a balance between safeguarding legitimate business interests in the short term and gradually building the foundations needed to adapt to increasingly stringent requirements on emissions and carbon transparency over the longer term.
From an industry perspective, the Vietnam Steel Association analyzed the specific impacts of CBAM on the steel sector - one of the industries most directly and visibly affected. CBAM was viewed as both a challenge, due to higher compliance costs and competitive pressure, and a catalyst for accelerating green transformation, technological innovation, and improvements in product quality. In the long run, the ability to meet emissions reduction and carbon traceability requirements is expected to be a key factor in maintaining and expanding access to major export markets.
In addition to representatives from government agencies, industry associations, and businesses, the workshop also attracted the participation of research and consulting organizations working in the fields of climate policy and sustainable development, including KLINOVA. Attending the event enabled KLINOVA to directly update itself on the latest CBAM-related policy developments and to gain diverse perspectives from policymakers, industry representatives, and international experts. These insights will support KLINOVA’s ongoing efforts in research, advisory services, and enterprise support, particularly in emissions measurement, ESG strategy development, and helping businesses gradually adapt to emerging carbon-related requirements in international trade.
- Phuong Thao -
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