Carbon at 70 Euros a Ton Reshapes Vietnamese Export Supply Chains

By Elena Vasquez

A carbon price that has at times approached 70 euros per metric ton of CO2 is now a board-level cost line for Vietnamese exporters, according to Dang Bui Khue, ESG director of sugar and agri-food producer Thanh Thanh Cong-Bien Hoa JSC, known as AgriS. He told a panel discussion in Ho Chi Minh City that carbon costs have become an important consideration for any Vietnamese business involved in production and exports.

The stakes are concrete. AgriS holds roughly 40 percent of Vietnam's domestic sugar market and ships products to more than 88 countries. Some of those markets now demand carbon-footprint data for individual products, not just company-level reporting.

What is driving the shift?

Two European Union policies dominate the compliance agenda for Vietnamese exporters: the EU Deforestation Regulation and the Carbon Border Adjustment Mechanism. Khue said these impose increasingly stringent requirements for supply chain transparency, emissions control and proof of product origin.

The commercial logic is straightforward. Buyers in regulated markets will only clear suppliers who can document where a product was grown, how it was farmed and how much greenhouse gas it carries. Suppliers who cannot meet that bar risk losing shelf space to those who can.

To comply, AgriS is building a traceability platform covering production locations, farming conditions, disease management and greenhouse gas emissions. The company expects greater transparency to strengthen its export position and to help farmers access green financing — a signal that sustainability data is becoming trade documentation, much like a bill of lading or certificate of origin.

The discussion, titled 'When Consumers Go Green, Businesses Adapt,' closed the Green Vietnam Festival 2026, held over the weekend at Phan Dinh Phung Park in Xuan Hoa Ward. Experts from agriculture, construction materials, sustainability consulting and lighting took part.

Are domestic consumers changing too?

Yes, and measurably. Nguyen Cong Minh Bao, co-founder and managing partner of sustainability consultancy Green Transition, said some Vietnamese consumers are willing to pay about 20 percent more for eco-friendly products.

Purchasing decisions are no longer based solely on quality and price, Bao said, but also on trust in the company behind the product. Consumers increasingly weigh environmental impact, corporate social responsibility and sustainability commitments before they buy.

The festival itself provided an uncomfortable data point. Green Vietnam Festival 2026 generated an estimated 34 metric tons of CO2 emissions. Operations accounted for about 46 percent of the total, while the remaining 54 percent came from festival-goers' transportation, food consumption and other activities.

"The figures show that reducing emissions requires participation from both organizers and the community," Bao said.

What about construction waste?

Ho Chi Minh City could generate around six million metric tons of construction waste this year, according to Williamson Derek, concrete and aggregates solution development manager at INSEE Vietnam. He compared that volume to roughly 2,000 Olympic-sized swimming pools to illustrate the scale.

Construction activity accelerated after 1990, driven by increased public investment and rapid urbanization in a city that had relatively low construction density before then. Waste volumes are expected to keep rising in the coming years.

INSEE is researching recycling solutions that would let demolition materials be reused rather than landfilled. Its expanding EcoCycle program already converts difficult-to-recycle industrial waste into alternative fuel and raw materials for cement production — a circular loop that turns waste streams into inputs for one of the region's most emissions-intensive industries.

Lighting maker Signify Vietnam reports the same pattern from the consumer side. Ecom manager Phan Tung Lam said buyers increasingly prefer products with longer lifespans and lower environmental impact, so the company is focusing on brighter, more durable and more energy-efficient lighting. Its latest products pair longer service lives with smart controls designed to cut unnecessary electricity use.

Who is behind the initiative?

Green Vietnam 2026 operates under the theme 'Green Transition - Sustainable Efficiency.' Tuoi Tre online newspaper launched the initiative together with the Department of Climate Change under the Ministry of Agriculture and Environment and the Packaging Recycling Organization Vietnam, with other partners.

Activities this year covered circular economy practices, renewable energy, waste sorting, producer responsibility programs, sustainable agriculture, green business tours and public awareness campaigns. Corporate backers include AgriS, Signify Vietnam, SCG Group, Nestlé Vietnam, TH Milk Food, Suntory PepsiCo Vietnam, Duy Tan Recycling, INSEE Cement, MCV Group, BIZMAN Investment and the Vietnam E-Commerce Association.

For Vietnamese exporters, the direction of travel is set: as EU deforestation and carbon border rules tighten and consumers reward documented sustainability, traceability platforms will move from differentiator to entry requirement in key trade lanes.

(FreightWaves-style coverage by Waybill Wire)