Green production is a mandatory direction for Vietnamese businesses to maintain their market position

Barriers to environmentally unfriendly products

Referring to the EU's application of green standards in importing goods, Mr. Cu Huy Quang - Deputy Chief of the Office of Sustainable Production and Consumption (Ministry of Industry and Trade) said that the Government has issued an Action Program national sustainable production and consumption in the period 2021-2030. According to the program, sustainable production and consumption is an inevitable trend not only in Vietnam but also in countries around the world, especially in the context of our increasingly depleted sources of primary materials. ; At the same time, it is also a requirement to "force" businesses to adapt to the trend of reducing carbon in production.

“Awareness of sustainable production and consumption, green production and green distribution helps businesses access world trends. Especially in the context of global competition and regulations in the free trade agreements Vietnam has signed, this has become a must for our businesses" - Mr. Cu Huy Quang emphasized.

From October 1, 10, the Carbon Border Adjustment Mechanism (CBAM) applied to EU goods imports officially takes effect, which will be a challenge and barrier to environmentally unfriendly products. , including Vietnamese products and goods.

However, this is also an opportunity for Vietnamese businesses to innovate their thinking and convert it into action in green production to catch up with EU market requirements, when the European Green Agreement is a trend.

According to economic experts, the European green deal could have an impact on Vietnam's exports to the EU in many ways, depending on the nature of the exported goods and the specific measures introduced under the agreement. favorable.

The European Green Deal is expected to increase the cost of imports with high environmental impacts, while promoting more sustainable and environmentally friendly products. Therefore, if Vietnam's exports are not environmentally friendly, they may be less competitive in the EU, while those that are sustainable and environmentally friendly may benefit from increased demand.

Enterprises proactively adapt to sustainable green production

From a business perspective, Mr. Pham Tung Linh - CEO, Duc Giang Corporation said that green production is a mandatory trend for textile and garment enterprises and many other industries when exporting to the EU. Investing in green production is very expensive, so businesses will have to implement it step by step. From using raw materials, recycling, and being environmentally friendly, in production activities, we aim to use green energy sources, save electricity and save water; Applying advanced science and technology such as AL technology to 3D modeling to help save raw materials and meet customer requirements.

According to Mr. Tran Van Quy - General Director of Trung Quy Textile and Garment Company, the company has invested more than 270 billion VND in a 10.000 m2 factory in Duc Hoa district, Long An province. Thanks to that, we can quickly move towards green production processes. In the dyeing and weaving stages, businesses can save 60 - 70% of water compared to old technology, not only helping to close the production process, but also promptly providing quality, international standard fabric sources for garment businesses. domestic wear, with a productivity of 2 million meters of fabric/year. Recently, the company exported 2 containers of fabric made from organic fibers to partners in the US.

Mr. Dinh Sy Minh Lang - European - American Market Department (Ministry of Industry and Trade) said that with agricultural products, Vietnam still faces difficulties from new and difficult regulations on the EU market. The most significant is the EU's green agreement on reducing emissions, combating climate change and sustainable development. In particular, the strategy from farm to table requires the circulation of products; prohibit the circulation and export of products related to deforestation and forest degradation; along with high standards of food safety and hygiene.

In particular, to export pepper, cashew, and coffee to the EU, they must be grown in legal growing areas, quality must be controlled, green, clean, and environmentally friendly. To overcome the technical barriers of this market, Mr. Dinh Sy Minh Lang said that businesses and producers need to continue to change green and sustainable production methods to meet strict quarantine requirements. .

In addition, businesses need to understand new European regulations such as regulations on sustainable development, green agreements, CBAM border adjustments, and EU food safety regulations.

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Vietnamese businesses need to note that, when inspected goods are discovered to use banned substances or exceed the threshold according to EU regulations, the goods will be returned, and the EU will immediately warn on the system. system of the entire EU and withdraw those products from the shelves and return them. In the future, it will be very difficult for these products to be exported back to the EU, Mr. Dinh Minh Lang emphasized.

According to Vietnam Financial Times