MINISTRY OF FOREIGN AFFAIRS PROVIDES INFORMATION ON THE TREND OF FORMING NEW STANDARDS ON CARBON PRICING

Recently, on July 28, the Ministry of Foreign Affairs issued Official Letter No. 3626/BNG-THKT sent to the Associations: Vietnam Textile and Apparel Association, Vietnam Leather, Footwear and Handbag Association, Vietnam Association of Seafood Exporters and Producers, Vietnam National Cement Association, Fertilizer Association of VietNam, Vietnam Steel Association...

This is a document for the Ministry of Foreign Affairs to provide information on the trend of forming new standards on carbon pricing, ensuring sustainability and responsible business conduct in international trade and investment.

Accordingly, some notable trends and standards emerged including:

• Initial formation of a cross-border carbon pricing mechanism.
• Global trade and supply chains are increasingly associated with criteria of sustainable development, biodiversity, environmental protection, anti-deforestation, labor, human rights and anti-corruption.
• The trend of major countries implementing industrial policies, increasing support in the fields of green growth, energy transition, and strategic industries is increasingly emerging.
• Countries promote the gathering of forces, international linkages and cooperation in new fields.

These trends have many impacts not only on the world economy but also on the Vietnam economy. In particular, this will be an opportunity for Vietnam if we proactively, promptly grasp and adapt, considering this as the driving force to transform the growth model. However, the biggest challenge right now is the risk that our country cannot keep up with new regulations that may lead to a decline in competition, both in exporting goods/services and attracting foreign investment.

According to the Ministry of Foreign Affairs, carbon neutrality, green and sustainable development are irreversible trends. Vietnam needs to catch up early with new standards for a better adaptive future, develop synchronous national strategies and plans, align climate goals, reduce emissions and develop sustainably...

For these purposes, the above Associations need to propose goals, perspectives and orientations for international economic integration in the coming period; develop a master plan, synchronously between sectors and localities, especially studying and promulgating criteria for investment incentives on “green production”; study international experiences and policies of countries; actively participate in forums and initiatives on green transformation, emission reduction, research on the possibility of mobilizing green finance as well as promoting economic diplomacy activities to support enterprises to connect with investment funds support green finance, strengthen dialogue with investors and enterprises to promptly remove difficulties.

For details, view:

https://drive.google.com/file/d/1ogroYpQUox2TZ6QR6YVIKdaoEwfAj4yF/view?usp=drive_link

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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