Vietnam's Steel: Green Transformation Drive

Vietname Steel
Vietname SteelImage Source: SteelGuru


Vietnam’s steel industry faces EU import challenges due to the Carbon Border Adjustment Mechanism. This mechanism taxes imports based on emission intensity, pressuring steelmakers to shift to eco-friendly practices. Despite a decline in steel exports, initiatives for green manufacturing, tech integration, and compliance efforts mark Vietnam’s bid to meet stringent global market demands.


Vietnam's steel industry confronts hurdles accessing the EU market after the EU's Carbon Border Adjustment Mechanism (CBAM) implementation. With the EU taxing imports based on emission intensity, steel producers in Vietnam are swiftly adapting to greener production methods to meet stringent regulations and maintain market access.

The CBAM's initial phase targets high-emission sectors like cement, iron, steel, and others, urging importers to report GHG embedded in imports. By 2026, importers failing to meet emission standards must acquire CBAM certificates, transforming carbon emissions into a critical factor for exports.

Expert Huynh Thanh Trung compares future carbon certificates to export visas for high-end markets, emphasizing their significance. Despite a decline in steel exports from Vietnam in 2022, awareness of greener production and compliance with global emission standards drive steelmakers' transformation.

Companies like VAS Group Nghi Son and Hoa Phat Group are spearheading this transformation, employing high-tech solutions and waste treatment technologies to reduce emissions. VAS Group's adoption of modern technologies secures demanding market orders, indicating the industry's shift towards green manufacturing.

Nghiem Xuan Da, Chairman of Vietnam Steel Association, acknowledges the industry's progress but emphasizes the need for further emission reductions. He highlights technologies like hydrogen energy and carbon sequestration as potential avenues for emission reduction.


Vietnam's steel industry grapples with EU import regulations amid the Carbon Border Adjustment Mechanism. Despite challenges and declining exports, the industry is swiftly adopting green manufacturing practices and embracing innovative technologies. Companies are reengineering production to align with global emission standards, ensuring a competitive edge in international markets.

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