Major international markets such as the EU, the US, and Japan have introduced new technical barriers based on product carbon footprints, most notably the EU’s Carbon Border Adjustment Mechanism (CBAM). In response, Vietnamese companies must proactively adopt emissions management tools to strengthen competitiveness, meet export market requirements, and contribute to national commitments on greenhouse gas reductions. One key tool is carbon footprint measurement and carbon labeling, where a product’s carbon footprint throughout its entire lifecycle in displayed on the packaging. The mechanism is already widely applied in many economies and been gaining traction.
For Vietnam’s business community, proactively measuring carbon footprints and adopting carbon labeling is no longer just a technical requirement, it is a strategic gateway to reinforce brand value, enhance sustainable competitiveness in global markets, and help realize the country’s net-zero commitment.
Demanding transparency
Globally, the shift toward a low-carbon development model is accelerating. International markets are imposing stricter requirements on greenhouse gas emissions transparency, carbon traceability of products, and associated environmental standards. This presents not only challenges but also opportunities for Vietnamese companies to transform, enhance competitiveness, and integrate more deeply into global value chains.
In particular, carbon footprint calculation, emissions management, and carbon labeling are emerging as critical trends that deliver tangible, long-term benefits. These tools are also becoming essential for meeting increasingly stringent green standards in international markets.
Mr. Nguyen Hung Minh, Deputy Head of the Carbon Market Division at the Department of Climate Change under the Ministry of Agriculture and Environment, outlined five key benefits of carbon labeling for businesses.
First, it enhances competitiveness and access to international markets. As mechanisms such as carbon taxes, CBAM, and green standards become more widespread, having a carbon label helps products better meet export requirements, particularly in developed markets. Export-oriented industries, including steel, cement, and fertilizers, are already facing mounting pressure from such policies.
Second, carbon labeling strengthens corporate reputation and builds trust with customers and partners. It demonstrates transparency and responsibility in environmental protection and climate action, reinforcing brand image and credibility in the marketplace.
Third, through emissions measurement and management, companies can identify inefficiencies in energy and resource use, improve processes, reduce costs, and increase operational efficiency.
Fourth, carbon labels provide consumers with more information to choose environmentally and climate-friendly products, helping steer markets toward greener and more sustainable consumption.
Fifth, effectively managing product carbon footprints enables businesses to proactively comply with domestic and international regulations, minimizing legal, financial, and reputational risks in global trade.
Carbon leaders win
Ms. Nguyen Thi Thanh Mai, Program Coordinator in the carbon labelling effort, noted that a policy framework for enterprise-level greenhouse gas inventories has already been established. Companies with significant emissions listed under regulatory requirements must conduct inventories, report, and monitor their emissions.
In this context, carbon labeling will enable companies to disclose emissions transparently across the entire product lifecycle. Through the program, businesses can measure, verify, and identify emissions hotspots, enabling them to take corrective action and present product carbon footprints more effectively to access markets.
The program also supports a shift toward low-carbon production, promotes sustainable consumption, and strengthens global competitiveness. Notably, aligning product carbon footprint disclosures with international standards can help reduce pressure on exporters to markets affected by CBAM.
Under the proposed roadmap, the pilot phase from 2026 to 2028 will focus on high-emission sectors. The full implementation phase from 2029 to 2032 will expand coverage to more industries and products. After 2033, the program will broaden further across sectors and product lifecycles, integrate with green procurement systems and carbon markets, and gradually move toward mandatory application in key sectors.
Initially, pilot projects will target three sectors: chemicals (fertilizers), food processing, and paper. Participating companies will standardize emissions management processes, establish scientific benchmarks, and develop internationally-aligned methodologies to quantify CO2 emissions throughout production and business operations. This will enhance transparency, allowing consumers and partners to recognize companies’ “green transition” efforts while improving reputation and competitiveness in global markets.
Mr. Hoang Anh, a senior energy and climate expert, emphasized that companies with robust greenhouse gas inventory systems will find it easier to transition to product carbon labeling.
Implementing such labeling also opens up new opportunities. Companies gain deeper insights into production processes and environmental impacts, enabling them to adopt improvement measures and move toward greener operations. It also positions them to participate in carbon markets, enhance product value, and access green finance.
However, he cautioned that insufficient or inaccurate data will prevent companies from obtaining carbon labels. Significant errors in product carbon footprint calculations will fail to meet labeling requirements.
Global supply chains are being reshaped around low-carbon, transparent, and sustainable principles. In this context, carbon labeling and data transparency are essential tools for market access. Experts stress that going green is no longer a short-term compliance cost but a strategic investment for long-term survival and competitiveness. Combined effectively, these factors can unlock export advantages and mobilize green capital flows. For example, cement exporters to the EU can reduce reported emissions, lower CBAM costs, and improve competitiveness by providing verified carbon data.
Effectively understanding and managing product carbon footprints enables businesses to proactively comply with domestic and international regulations, while minimizing legal, financial, and reputational risks in global trade.
- Mr. Nguyen Hung Minh, Deputy Head of the Carbon Market Division at the Department of Climate Change under the Ministry of Agriculture and Environment
Green transition is not a meaningless cost, but a worthwhile investment in the future. Companies that lead in measuring carbon footprints today will be the ones leading the market tomorrow.
- Mr. Nguyen Trung Thuc, Director of the Institute of Technology and Innovation for Business (ITB) at the Vietnam Chamber of Commerce and Industry (VCCI)
Hoang Anh
