At the 26th UN Climate Change Conference in 2021 (COP26), Vietnam committed to achieving net-zero emissions by 2050; reducing greenhouse gas emissions by 43.5% by 2030 across the energy, agriculture, forestry and land use, waste, and industrial production sectors; and ending deforestation, cutting methane emissions by 30% compared to 2020.
In this context, the Environmental-Social-Governance (ESG) framework offers significant opportunities for enterprises in the Mekong Delta region, namely:
(1) Enhanced competitiveness: expanding market access, increasing investment attraction, gaining access to green finance and concessional capital at interest rates approximately 2% lower, and improving compliance with regulatory requirements, particularly for exporters to the EU and global supply chains; and
(2) Strengthened business strategy and governance: enabling operational optimization, reducing cost, improving profit margins, and mitigating risk through more transparent management systems.
However, emerging emission-related standards and regulations are also placing substantial pressure on enterprises:
(1) Green Barriers and Tax Pressures: Exporters of agricultural and aquatic products are facing major impacts from EU mechanisms[1]. Tariff shocks and transparency requirements from the United States further contribute to revenue declines and market-loss risks;
(2) Compliance Pressures: A rapidly increasing volume of new standards from international markets;
(3) Cost Pressures: Requirements to invest in technology, management systems, and data infrastructure to meet green regulations; and
(4) Labor and Greenhouse Gas Accounting Pressures: The EU is tightening transparency requirements on labor conditions and demanding increasingly accurate emissions measurements.
To overcome these challenges and sustain their competitive advantages, enterprises must focus on key measures, including:
(1) Conducting greenhouse gas inventories and disclosures for aquatic, agricultural and food sectors, and providing transparent, standardized emissions data;
(2) Ensuring that domestic food-processing facilities designated for mandatory inventories develop emission-reduction plans and prepare to participate in the pilot carbon market from 2026, moving toward full operation after 2029; and
(3) Establishing robust measurement-reporting-verification (MRV) systems for greenhouse gas emissions, and investing in energy-efficient technologies and clean-fuel transitions to meet evolving market requirements.
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References: 1. Voice of Vietnam, 11 December 2025
2. Ministry of Agriculture and Environment, 30 September 2025
https://mae.gov.vn/viet-nam-trien-khai-cac-cam-ket-khi-hau-tai-cop26-19890.htm
[1] The Carbon Border Adjustment Mechanism (CBAM), the EU Deforestation Regulation (EUDR), the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CSDDD)
