The Carbon Border Adjustment Mechanism and the Adaptive Capacity of Vietnamese Export Enterprises: Empirical Overview and Policy Recommendations

Abstract:

The European Union’s Carbon Border Adjustment Mechanism (CBAM) is emerging as a major environmental policy instrument with significant implications for global trade, particularly for exporting countries such as Vietnam. By internalizing carbon costs into cross-border trade, CBAM imposes stringent technical requirements and may create new trade barriers for enterprises lacking adequate preparation. Based on a preliminary survey of 120 Vietnamese exporting enterprises across key sectors, this study finds that most firms have limited awareness of CBAM, weak emissions accounting capacity, and considerable difficulties in ensuring supply chain transparency. These challenges are especially pronounced among small and medium-sized enterprises. Major obstacles include high transition costs, shortages of specialized technical personnel, and limited access to policy support and green finance, which may undermine firms’ competitiveness in the EU market. In response, the article proposes a set of policy recommendations and short- and long-term adaptation strategies to support enterprises in maintaining competitiveness while aligning with sustainable development goals in a trade environment increasingly shaped by low-emission standards.