Transforming green to participate in the global supply chain

The European Commission and the Ministry of Industry and Trade recently partnered to host a seminar entitled "Green Transformation in Agricultural and Food Production to Promote Exports to the European Union." The objective of the program is to assist Vietnamese businesses in overcoming obstacles, adjusting to green regulations and policies, and capitalizing on trade and investment opportunities in potential sectors such as the green economy, digital economy, circular economy, and energy transformation within the EU market.

In his address at the seminar, Mr. Le Hoang Tai, Deputy Director General of the Vietnam Trade Promotion Agency (Ministry of Industry and Trade), reaffirmed that the EU is a significant contributor to the country's energy transformation, integration, and socio-economic development, and is one of Vietnam's foremost trade and investment partners. The National Green Growth Strategy of Vietnam is actively pursuing Net Zero emissions by 2050, as it is currently in the process of implementing the commitments made at COP26.

Mr. Jean-Jacques Bouflet, Vice Chairman of the European Chamber of Commerce in Vietnam (EuroCham), underscored the significance of the European Green Deal (EGD) in the development of sustainable policies. He also emphasized new challenges that Vietnamese exporters are encountering, specifically the EU's Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR).

Mr. Bouflet recommended that Vietnamese businesses prioritize the optimization of water and energy consumption, the attainment of internationally recognized certifications, the preparation for future carbon reporting requirements, and the enhancement of sustainability in production processes in order to comply with the European Green Deal.

The European Union is offering a variety of support for helping businesses in shifting to sustainable practices, including technical assistance and funding programs. Participating in seminars and training sessions can provide enterprises with valuable insights into regulatory changes and best practices, enabling them to remain at the forefront of the industry.

Mr. Bouflet emphasized that Vietnamese businesses are not only required to adhere to these new standards, but they also have a substantial opportunity to further integrate into the global supply chain.

Assoc. Prof. Dr. Nguyen Dinh Tho, Director of the Institute of Strategy and Policy on Natural Resources and Environment (Ministry of Natural Resources and Environment), acknowledged the obstacles presented by EU-imposed ESG barriers, such as CBAM and EUDR. In this context, Vietnam must make a concerted effort to transition to a green economy, to achieve a sustainable, resource-efficient, and low-emission economic model.

Mr. Laurent Lourdais, a representative of the EU Delegation to Vietnam, emphasized the necessity for Vietnamese businesses to consistently innovate production processes and adhere to environmental and social standards in order to sustain their market presence in the EU. Also, in order to satisfy the increasing expectations of European consumers, he advised businesses to establish sustainable supply chains and improve traceability.

One of the representatives of a UK-based importation company, Mr. Omer Oktay, expressed his enthusiasm for the potential for collaboration between the EU and Vietnam in the production and export of green-standard products. In response to the increasing demand for sustainable products in the EU market, Vietnam has several advantages, such as a strong commitment to green development and an abundance of raw materials.

A representative from Betrimex (Ben Tre Import-Export Joint Stock Company) articulated their approach to the production and export of coconut products that adhere to European green-standards. Betrimex implements a sustainable "Zero-Waste" approach that prioritizes three components: the economy, society, and environment. Each pillar endeavors to accomplish objectives such as promoting diversity and inclusion, augmenting the value of coconuts, and achieving zero emissions.

Betrimex is currently concentrating on the optimization of coconut value, the reduction of waste, and the implementation of renewable energy and carbon offset initiatives. The company also assists farmers in rural communities by implementing sustainable agricultural models and digitization to enhance their livelihoods and increase their incomes. These endeavors not only mitigate the negative environmental effects but also increase the value of Vietnamese coconut products on a global scale, thereby bolstering their reputation.