Vietnamese exporters are struggling to meet the green energy and carbon-emissions standards set by developed countries, which are being raised to ensure environmental sustainability.
This is one of several challenges that have caused Vietnam's exports to drop 11.8% year-on-year to over $79 billion in the first quarter. The United States, Vietnam’s biggest market, saw a drop of 19.4%, while Asia and Europe, other major markets, saw declines of 7.3% and 9.7% respectively. Main categories such as electronics, computers, smartphones, and garments all saw drops.
According to Minister of Industry, the new standards seem reasonable but are part of an unfair race in which developed countries have gotten so far ahead. Rising input costs, trade remedy investigations, and weak demand also contributed to the decrease. Ministery warned that without solutions to tackle these difficulties, Vietnam would fail to meet its exports target for this year and upcoming years.
Vietnam Textile and Apparel Association proposed that credit packages of zero-interest be given to companies to pay their employees amid difficulties. The package should cover up to six months of salary.
More trade promotions were also needed in countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and in the EU.
