On November 8, during the seminar titled "Carbon Border Adjustment Mechanism (CBAM): Opportunities and Challenges for Vietnamese Export Businesses," jointly organized by the Ho Chi Minh City Center of International Integration Support (CIIS) and the HCMC Center for Trade and Investment Promotion (ITPC), Ms. Cao Thi Phi Van, Deputy Director of ITPC, highlighted that four manufacturing sectors are facing the risk of a decline in their export revenues to the European Union (EU). These sectors encompass aluminum, steel, cement, and fertilizer, with steel products alone constituting nearly 80 percent of the total value of these four export categories.
The cause for this is the EU's adoption of the CBAM on October 1, 2023. CBAM is an EU policy instrument designed to impose carbon taxes on all imported goods entering the EU market, depending on their greenhouse gas emission intensity during production. It is estimated that with this mechanism, the production costs for Vietnam's steel, aluminum, and cement industries will rise by around US$36 billion annually when exporting to the EU market.
