{"id":1721,"date":"2025-12-11T12:01:37","date_gmt":"2025-12-11T05:01:37","guid":{"rendered":"https:\/\/stivina.com\/cbam-and-six-high-emission-product-groups-what-impacts-do-vietnamese-enterprises-in-the-eu-supply-chain-face"},"modified":"2026-01-06T11:15:37","modified_gmt":"2026-01-06T04:15:37","slug":"cbam-and-six-high-emission-product-groups-what-impacts-do-vietnamese-enterprises-in-the-eu-supply-chain-face","status":"publish","type":"post","link":"https:\/\/stivina.com\/en\/cbam-and-six-high-emission-product-groups-what-impacts-do-vietnamese-enterprises-in-the-eu-supply-chain-face","title":{"rendered":"CBAM and six high-emission product groups: what impacts do Vietnamese enterprises in the EU supply chain face?"},"content":{"rendered":"

The carbon border adjustment mechanism (CBAM) of the European Union (EU) officially entered the transitional phase from October 2023. This is not only a new technical barrier but also a screening mechanism for global supply chains. In particular, for six high-emission product groups, Vietnamese enterprises are facing \u201cdual pressure\u201d: the need to ensure data transparency while optimizing carbon costs in order to maintain market share in the EU.<\/em><\/p>\n

Why did the EU introduce CBAM? What impacts do Vietnamese enterprises face under carbon-related challenges?<\/em><\/span><\/p>\n

Why the EU introduced CBAM<\/h3>\n

The EU has set the objective of achieving carbon neutrality by 2050 (net zero). To move toward this objective, the European Union applies the EU ETS \u2013 the Emissions Trading System \u2013 which requires all enterprises within the bloc to pay a fee for each tonne of CO\u2082 emitted. This is a mechanism that makes production costs increase in proportion to emissions.<\/p>\n

Carbon prices under the EU ETS are not fixed but fluctuate significantly according to market conditions, typically ranging from approximately EUR 60\u201390 per tonne of CO\u2082 in recent years, and exceeding EUR 100 at certain peak periods. As the EU tightens the emissions cap year by year, the volume of free allowances gradually decreases, requiring enterprises to purchase additional quotas at increasingly higher prices. As a result, carbon costs become a significant component of production costs, compelling manufacturers to invest in cleaner technologies, upgrade equipment, and optimize energy use in order to maintain long-term competitiveness.<\/p>\n

However, as carbon prices in Europe increase, some EU enterprises tend to relocate production to countries that do not apply carbon pricing, including Viet Nam. This does not reduce global emissions but instead shifts them to other countries, creating the risk of carbon leakage.<\/p>\n

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CBAM is considered part of the EU\u2019s objective of achieving carbon neutrality by 2050.<\/em><\/p>\n

Six high-emission product groups within the scope of CBAM<\/h3>\n

1. Distinguishing between \u201cindustry\u201d and \u201cproduct group\u201d under CBAM<\/h4>\n

This is a point that many Vietnamese enterprises currently misunderstand.<\/p>\n

Industry:<\/strong> A broad scope of economic activity, for example: the steel industry, cement industry, aluminium industry, chemical industry. An industry includes many different types of products, not all of which necessarily fall under CBAM.<\/p>\n

Product group \u2013 CBAM application level:<\/strong> CBAM applies at very specific HS\/CN codes (detailed to 6\u20138 digits), not to an entire industry.<\/p>\n

Examples:<\/strong><\/p>\n