The European Chamber of Commerce in Vietnam (EuroCham) has recommended that Vietnam speed up the development of legal frameworks, begin mobilizing financial resources for its green transition, and leverage international experience to avoid development derailment and resource waste. 

Jean Jacques Bouflet, vice-chairman of EuroCham, offered the recommendations at a forum on promoting the Vietnam-EU partnership and sustainable development held by the Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City on Wednesday with the goal of boosting cooperation between Vietnamese businesses and the EU market.

Bouflet acknowledged Vietnam’s recent efforts to build a policy framework for green economic development and reaffirm its commitments to sustainable growth.

Specifically, the country has developed a national green growth strategy which aims for net-zero emissions by 2050, along with other national strategies on forestry, environmental protection, and sustainable development, Bouflet elaborated.

However, he noted that Vietnam still lacks the precise legal frameworks essential for driving a green transition across its various sectors, as well as clear guidelines for securing the financial support necessary for sustainable development.

In light of this, the EuroCham official recommended that Vietnam prioritize the creation of detailed frameworks and specific regulations for green development.

He urged the country to draw on international expertise to ensure the transition remains on track and resources are effectively utilized.

Bouflet told the forum that the European Union is committed to assisting Vietnam in advancing its green transformation, particularly in renewable energy, green transportation, and sustainable finance.

EuroCham is ready to coordinate and share experience with Vietnamese industries to develop a sustainable green economy, he added.

At the forum, many other delegates discussed market trends and new opportunities in the EU market, green finance, smart agriculture, and potential business prospects in emerging fields.

Bui Hoang Yen, deputy director of the Trade Promotion Agency's Ho Chi Minh City office, highlighted a concerning statistic: despite the numerous incentives provided by the EU-Vietnam Free Trade Agreement (EVFTA), Vietnamese exports currently make up just 1.8 percent of the EU's total imports.

Yen attributed this modest figure to the EU's rigorous market demands, which not only require exports to meet stringent technical standards but also increasingly emphasize sustainability and environmental responsibility.

Since 2020, the EU has been enforcing the European Green Deal (EGD), a comprehensive policy initiative designed to guide the bloc toward a green transition, with the ambitious target of achieving climate neutrality by 2050.

The EGD imposes 35 sustainability requirements aimed at ensuring minimal environmental impact, and these regulations apply to all trading partners, including Vietnam.

Given these challenges, Vietnamese exporters face significant hurdles in meeting the EU's stringent demands.

Ensuring product origin traceability and establishing well-defined material sourcing areas are particularly pressing issues for goods from Vietnam.

Vo Tan Thanh, vice-president of VCCI, emphasized the crucial role of the EU market for Vietnam, noting that the EVFTA has significantly opened doors for Vietnamese goods and services, offering greater incentives than those available to other countries in the region.

“In order to make the most of this opportunity, Vietnamese businesses must build a sustainable, green production model, thereby improving the competitiveness of their EU-bound,” Thanh said.

Currently, the EU currently stands as Vietnam’s largest development partner, fifth-largest trading partner, and sixth-largest foreign investor, while Vietnam ranks as the EU’s largest trading partner within ASEAN and 14th globally, according to VnEconomy newspaper.

In the first half of 2024, trade between Vietnam and the EU reached approximately $32.39 billion, marking a 13.5-percent increase year on year.

During this period, Vietnam's exports to the EU totaled $24.69 billion, reflecting a 15.4-percent rise.

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