TECHNICAL GUIDANCE FOR VIETNAMESE INDUSTRIES ON HOW TO REPORT UNDER CARBON BORDER ADJUSTMENT MECHANISM (CBAM)

The primary objective of this technical guidance document is to enable Vietnamese enterprises to understand the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) and how Vietnamese export-oriented enterprises can respond. The document offers advice on calculating and registering greenhouse gas (GHG) emissions, It also provides guidance on complying with the CBAM regulations, including advice for businesses and organizations on how to enhance their GHG management practices. 

Vietnamese businesses have the opportunity to enhance their competitiveness in the global marketplace and have a positive impact on the environment by reducing GHG emissions of goods exported abroad. The Government of Vietnam is helping businesses take advantage of these opportunities by sharing information about the new CBAM requirements, including in Vietnamese.  

The US Agency for International Development (USAID) is collaborating with the Ministry of Industry and Trade (MOIT) to create information about CBAM and other climate change reporting standards that support the Government of Vietnam's efforts to enhance private sector competitiveness. MOIT, in particular, seeks to increase information about CBAM in Vietnamese. 

USAID funded the following document on how to navigate CBAM requirements through the USAID INVEST initiative and engaged a consortium led by RCEE-NIRAS to do so. The technical guidance document was prepared by RCEE-NIRAS after consulting with Vietnamese business associations to ascertain their information requirements and priorities. The document is organized into 5 parts:

● Background on CBAM, including roles and responsibilities of importers and exporters and the timeline for implementation of this mechanism.

● Potential impact on Vietnamese industry. This includes a review of sectors covered by CBAM – such as aluminum, cement, fertilizer, and steel – and the extent to which Vietnamese exports could be affected by the new requirements.

● CBAM regulations during the transition phase. This section summarizes responsibilities of importers and exporters and the EU’s timeline for implementing each component of CBAM.

● Monitoring and Reporting. The EU is developing a system by which parties can monitor and report on compliance with CBAM. This section summarizes the EU guidance available to date.

● Recommendations for how Vietnamese enterprises and government agencies can prepare for implementation of CBAM.

The Appendices include a list of key references on CBAM as well as relevant extracts from EU’s CBAM guidance documents.