A lot of industries are affected by the European Green Deal

Ms. Nguyen Thi Hoang Thuy, Commercial Counselor, Vietnam Trade Office in Sweden, concurrently responsible for Northern Europe, said that in the European market in general and Northern Europe in particular, the European Green Deal is a new policy, is expected to impact trade with the region, while opening up new possibilities for business both within and outside the EU.

Some policies and strategies that can immediately be seen affecting exports to the EU are the Carbon Border Adjustment Mechanism (CBAM), the Farm to Fork Strategy, and the Action Plan. Circular economy, or Biodiversity Strategy until 2030.

“It can be said that this is a comprehensive plan to achieve climate neutrality and also a strategy for development. For businesses, there will be new requirements on sustainability that require adjustments in production activities," Ms. Nguyen Thi Hoang Thuy informed, adding that basically the EU will require Products circulating on the market must be sustainable, reusable, repairable, recyclable and energy efficient.

Sustainable foods must meet general definitions, general principles, requirements, certifications and labeling schemes. Amendments are ongoing and a new legal framework will be proposed as soon as 2023.

Representative of the Vietnam Trade Office in Sweden, concurrently in charge of Northern Europe, assessed that as one of the EU's important partners, the European Green Deal has the potential to affect a number of Vietnamese industries, depending on on the nature of the industry and the specific measures introduced under the agreement.

One of the industries that could be affected by this agreement is the textile and footwear industry. The EU is a large export market for Vietnam's textiles, garments and footwear. The EU Green Deal, specifically the Circular Economy Action Plan, will require textile products to be manufactured using environmentally friendly materials and processes, and meet standards sustainability and strict eco-labelling.

"Vietnamese businesses in this field will need to adjust production processes and invest in new technology to maintain competitiveness," Ms. Nguyen Thi Hoang Thuy noted.

In the packaging industry, packaging must be made of environmentally friendly materials and be fully recyclable. This will impact Vietnamese businesses in the field of packaging production as well as businesses using packaging for export products.

Another sector that could be affected by the EU Green Deal is agricultural and fisheries products. The Green Deal sets out a more sustainable and environmentally friendly approach to agriculture, which will require Vietnamese businesses to meet new standards of sustainable farming practices and food production, while investing in new technology and changing production processes to minimize waste and reduce the use of toxic chemicals.

The iron and steel industry is also likely to be affected as the Green Deal sets a target to reduce the use of energy-intensive materials and switch to more sustainable materials.

According to Ms. Nguyen Thi Hoang Thuy, the EU Green Deal poses challenges for Vietnamese businesses while also creating new development opportunities. Businesses need to be clearly aware of the changes that the Agreement will bring and be ready to adapt to the challenges to maintain competitiveness in the EU market, while staying ahead of new trends to create new products. more sustainable and environmentally friendly products for long-term benefits.

Open opportunities from supply chain connections

Representative of the Vietnam Trade Office in Sweden, concurrently in charge of Northern Europe, said that detailed information on these issues will be announced in a series of forums and seminars at Viet Nam International Sourcing.

In particular, the Vietnam Trade Office in Sweden has promoted the event "Connecting the international supply chain of goods" (Viet Nam International Sourcing 2023) widely on information channels and actively sought , contact, work to mobilize, invite purchasing delegations, import businesses, and distribution businesses from the host country to Vietnam to participate in the series of exhibition and seminar activities mentioned above.

“We plan to organize a purchasing group with more than 10 Northern European businesses to attend this event. In addition, potential purchasing partners such as IKEA and H&M are expected to send their purchasing representatives in Asia and Vietnam to attend the event. Swedish businesses hope to meet and trade at the Exhibition with businesses with high quality products that have achieved international certificates, in sectors where Vietnam has strengths such as food, textiles, garments, shoes, sporting goods, household appliances and furniture..." said Ms. Nguyen Thi Hoang Thuy.

The Vietnam Trade Office in Sweden hopes that through this series of events, Northern European businesses will find more sources of goods from Vietnam and gain trade agreements as well as new business ideas.

Minh Toan