The Government has just issued an urgent directive to the relevant ministries and sectors, emphasizing the immediate need to implement tasks to respond to the European Union's (EU) Carbon Border Adjustment Mechanism (CBAM).
The Government assigned the Ministry of Industry and Trade as the focal agency, presiding over and coordinating with relevant ministries, sectors, and agencies to develop and implement effective measures to respond to the CBAM, including formulating and executing a Project to address the CBAM. At the same time, the Ministry of Industry and Trade will preside over and coordinate with the Ministry of Foreign Affairs, the Ministry of Natural Resources and Environment, the Ministry of Agriculture and Rural Development, and other relevant ministries and sectors to implement tasks in the group of solutions related to international negotiation and cooperation. It emphasizes the need to continue proactively and actively engaging in dialogues with the EU and the UK within frameworks such as the WTO, EVFTA, and UKVFTA to clarify the conformity of CBAM with international commitments.
The Government has also tasked the Ministry of Industry and Trade, in collaboration with the Ministry of Foreign Affairs, with researching the response strategies of countries similarly impacted by CBAM, such as Indonesia, South Africa, and Colombia. At the same time, it will enhance consultations and coordinate positions with other countries that are or will be affected by CBAM within bilateral and multilateral frameworks like the WTO and ASEAN.
The Ministry of Industry and Trade is also responsible for researching the potential expansion of the scope of CBAM, particularly to agricultural and forestry products. It will examine support mechanisms and appropriate exemptions for Viet Nam, monitor developments in partner countries such as the United States and Canada regarding the application of CBAM, and explore negotiating and joining bilateral and multilateral forums and international frameworks to strengthen cooperation and gain global recognition of Viet Nam's policies and regulations related to carbon pricing.
In addition, the Government has instructed relevant ministries, sectors, and industry associations to implement activities within the group of solutions to support businesses in adapting to the requirements of CBAM. The Ministry will preside over and coordinate with the Ministry of Public Security and other relevant ministries and sectors to evaluate and assess programs and projects involving foreign cooperation related to CBAM.
Relevant ministries and functional sectors are required to promptly study and develop policies related to carbon pricing in line with international practices. These policies must ensure compatibility with global carbon pricing policies and be implemented appropriately. This includes developing and operating a domestic carbon market, supporting businesses in purchasing carbon credits to offset costs, and reducing expenses associated with CBAM certificates when exporting goods to the EU market.
The State Bank of Viet Nam will collaborate with ministries and sectors to implement green credit solutions, including credit for projects that meet the requirements of CBAM under the Green Classification List. The Ministry of Justice, in coordination with the Ministry of Industry and Trade and other relevant ministries, will be responsible for researching the use of dispute resolution mechanisms under the WTO, EVFTA, and UKVFTA to minimize the impact of CBAM on Viet Nam and evaluate Viet Nam's legal strengths and weaknesses.