ESG – “The green ticket” for Vietnamese products to enter the EU market

ESG is no longer just a trend – it has become a mandatory requirement under the EU’s 2025 regulations.
Vietnamese businesses must standardize their reporting, ensure transparent carbon accounting, and adopt ESG technologies to maintain their export markets.

1. Background: When “Green” Becomes a Prerequisite

Starting from 2025, the European Union (EU) will officially tighten its requirements on ESG (Environmental – Social -Governance) for all imported goods.
This means Vietnamese enterprises can no longer stop at “green commitments” on paper – they must demonstrate sustainable production processes, transparent sourcing, and most importantly, quantify carbon emissions throughout the product lifecycle.

As the EU moves toward its Net Zero 2050 target, frameworks such as CBAM (Carbon Border Adjustment Mechanism), ISO 14064, SBTi, GRI, and CSRD have become mandatory benchmarks in global supply chains.
Products that fail to meet ESG standards risk high carbon taxes, customs rejection, or loss of access to the EU market – one of the world’s largest and most demanding destinations.

2. ESG – Opportunities and Challenges for Vietnamese Exports

For Vietnamese companies, ESG presents both a challenge and an opportunity to enhance brand value and penetrate premium global markets.
However, key challenges remain:

• Lack of accurate emission measurement systems and fragmented data.

• Absence of internal ESG criteria aligned with international standards.

• Limited experience in preparing ESG and GHG (Greenhouse Gas) reports under EU or SBTi frameworks.

Statistics show that fewer than 5% of Vietnamese enterprises are currently capable of preparing complete emission reports.
Many still estimate rather than measure emissions, leading to inaccuracies and missed opportunities to prove compliance with ESG standards.

3. Act Now – Start with Accurate Emission Data

To comply with EU requirements, businesses must build a comprehensive ESG management system through three key steps:

– Emission Measurement (GHG Accounting)

• Collect data on energy, materials, transportation, and waste.

• Apply emission factors in accordance with Decision 2626/QĐ-BTNMT or IPCC Tier 1–2.

– Transparent ESG Reporting

• Develop reports based on GRI, SASB, or CSRD frameworks.

• Integrate emission data across environmental, social, and governance dimensions.

– Continuous Improvement and Disclosure

• Set annual emission reduction targets.

• Publicly disclose data to enhance credibility and attract global investors.

💡 Uzero – Empowering Vietnamese Businesses on Their ESG Journey

Uzero, a joint product developed by Udata and Zeroboard(*), accompanies Vietnamese enterprises on their ESG journey – automating emission calculation and monitoring, paving the way for local products to confidently access the EU market.

With Uzero, all emission data can be easily imported, automatically consolidated, and exported into GHG-standard reports within minutes.

Key features include:

• A visual dashboard highlighting emission “hotspots”.

• Scope 1–2–3 tracking by month or year.

• GHG Protocol and ISO 14064-compliant reports, easily shareable with partners and auditors.

(*) Zeroboard is Japan’s leading SaaS platform for carbon emission calculation and management under international standards, serving over 14,000 corporate clients worldwide.

👉 Start by understanding your emissions – follow Udata to learn how to measure them accurately and in compliance with global ESG standards.

Contact us:

Website: https://udata.ai/ 

Hotline: 1800 255 698 

LinkedIn: https://www.linkedin.com/company/udatajsc/ 

Email: sales@udata.ai

Read more: “The national emission factors under Decision No. 2626/QĐ-BTNMT“