Policies to support Vietnamese businesses in adapting to the Carbon Border adjustment mechanism

Abstract

The European Union’s Carbon Border Adjustment Mechanism (CBAM) poses significant challenges regarding carbon emissions for Vietnamese export businesses, especially in heavy industries such as steel and cement. This article analyzes the challenges posed by CBAM, evaluates the effectiveness of support policies from the Vietnamese government, and offers policy implications to enhance businesses’ adaptability to this mechanism. Implementing comprehensive support policies will not only enable businesses to comply with CBAM regulations but also serve as a catalyst for  the green transition, thereby boosting Vietnam’s global competitiveness.