Vietnamese Exports Struggle Without Green Certification Amid Global ESG Shift
As global markets move aggressively toward sustainable sourcing and carbon accountability, Vietnamese exporters are increasingly finding themselves on the wrong side of the green line. From textiles to steel, from seafood to agriculture, Vietnam’s key export sectors are encountering mounting barriers in international trade due to the lack of verifiable green credentials and ESG (Environmental, Social, Governance) compliance.
The problem is not new, but it’s quickly becoming urgent. Countries and corporate buyers alike are moving from “green preference” to “green requirement.” And in this high-stakes game of supply chain restructuring, lack of green certification could mean lost contracts, delayed shipments, and weakened national competitiveness.
The World Goes Green — Vietnam Risks Falling Behind
Over the past three years, global buyers have ramped up sustainability screening. The EU’s Carbon Border Adjustment Mechanism (CBAM) imposes tariffs on high-emission imports such as steel and aluminum. Major retailers and tech brands like IKEA, Uniqlo, and Apple now require suppliers to submit carbon disclosure reports and adhere to strict labor and environmental codes.
“If Vietnamese businesses fail to meet ESG requirements, they risk exclusion from global supply chains,” said Nguyen Quang Vinh, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI).
Unfortunately, many Vietnamese exporters — particularly small and medium-sized enterprises (SMEs) — are struggling to catch.
| Sector | Green Requirements | Market Impact |
|---|---|---|
| Steel & Aluminum | CBAM carbon reporting, low-emission production | Risk of EU tariff penalties |
| Seafood | ASC, BAP, GlobalG.A.P. certifications | Barred from Japan/EU contracts |
| Textiles & Apparel | Sustainable materials, energy traceability | Losing orders to Bangladesh & India |
| Agriculture (Rice, Coffee, Pepper) | Organic/low-carbon farming proof, traceability | Entry barriers in premium markets |
| Wood Products | FSC forest certification | Risk of anti-deforestation compliance |
Many Vietnamese factories still rely on grid electricity generated from fossil fuels (mainly coal), pushing up their carbon intensity. This undermines the country’s low-cost advantage when compared to competitors who are investing in solar power, green manufacturing, and digital compliance tracking.
National Commitment, Local Gaps
Vietnam has pledged to reach net-zero emissions by 2050, supported by the National Green Growth Strategy and Power Development Plan VIII (PDP8). But experts say the private sector — especially exporters — lack access to green finance, clear guidance on ESG standards, and affordable certification pathways.
“The gap isn’t just technical. It’s financial, institutional, and cultural,” noted Le Duy Hiep, Chairman of the Vietnam Logistics Association (VLA). “We need a green transition ecosystem, not just slogans.”
Barriers to Green Certification
High certification costs: International audits for ASC, FSC, or ISO 14001 often exceed $10,000 — unaffordable for most SMEs.
Lack of human resources: Few firms have in-house ESG officers or knowledge of sustainability frameworks.
Complex procedures: ESG standards require documentation, emissions data, and multilingual technical reports — challenging for local firms.
Fragmented support: No centralized public-private program to guide and co-fund certification at scale.
Solutions for a Green Trade Future
Vietnam’s path forward requires action on three fronts: enterprise action, government support, and international partnership.
1. Enterprise-Level Actions
Adopt solar energy via Power Purchase Agreements (PPAs):
Firms can install solar rooftops with zero capital investment. Under a PPA, they buy electricity at a fixed, discounted rate while cutting emissions — a double win for cost and compliance.Pursue international certifications strategically:
Exporters should prioritize key certifications based on target markets — e.g., BAP for shrimp, ISO 14001 for garments, FSC for wood.Train ESG managers or sustainability officers:
In-house capability is vital to lead reporting, audits, and supply chain transparency efforts.Join sectoral green clusters:
Collaborate with peers in the same industrial zone to share solar infrastructure, auditors, and training costs.
2. Government-Level Support
Subsidize green certification for SMEs:
Create a government fund to co-finance ESG and environmental certifications for export firms.Build green tech infrastructure:
Prioritize investments in solar-ready industrial zones, green logistics hubs, and EV infrastructure.Enforce traceability standards nationally:
Implement unified data and tracking systems to help firms comply with international traceability laws (e.g., EUDR, CBAM).Mandate ESG disclosure for listed companies:
This would create upstream pressure and transparency across supply chains.
3. International & Financial Collaboration
Green financing mechanisms:
Partner with ADB, IFC, and climate funds to create low-interest ESG loans, carbon credits, and green bonds for exporters.Bilateral agreements with trade partners:
Negotiate mutual recognition of green standards to reduce certification duplication and costs.Technology and knowledge transfer:
Leverage foreign expertise in carbon accounting, sustainability reporting, and clean manufacturing.
Case Study: Solar PPA in Export Manufacturing
A recent example comes from a seafood processor in the Mekong Delta, which signed a 15-year solar PPA contract to power its cold storage facilities. The system saves 28% on monthly electricity bills and has helped the company meet ASC audit requirements related to energy use and emissions.
Such cases demonstrate how green energy isn’t just an environmental move — it’s a strategic market advantage.
Conclusion: Going Green Is No Longer Optional
In the new era of green trade, environmental compliance is becoming a basic requirement, not a differentiator. Without green certifications, Vietnamese exporters risk being priced out, regulated out, or simply left out of key markets.
The good news: Vietnam has the momentum, policy support, and green finance potential to catch up. But that requires coordination across sectors, urgency from businesses, and targeted support from the state.
By embracing tools like solar PPAs, sector-based ESG training, and international certification partnerships, Vietnam can not only defend its export position — but emerge as a leader in sustainable trade.
