Speakers share at the seminar.

At the seminar under the theme of “The EU's Circular Economy Action Plan (CEAP) and Its Impacts on Vietnamese Businesses”, held on November 27, Do Huu Hung, Director of the Department of European - American Markets (Ministry of Industry and Trade) said that CEAP is part of the European Green Deal. CEAP will impact on seven major export sectors, including: electronic equipment, information technology, battery, packaging, plastics, textiles, and footwear.

CEAP’s key regulations are related to ecological design and sustainable products. These regulations have been effective since July 2024.

“These regulations are very complicated. The EU regulations in CEAP will directly affect Vietnam's exports. Products that do not meet EU standards will be not allowed to be imported to the EU market, and will not be cleared by the Customs”, said Hung.

However, these regulations can offer opportunities such as providing new customer, and achieve good production and business, and reduce cost in the long term.

Dr. Mai Thanh Dung, Deputy Director of the Institute of Strategy and Policy on Natural Resources and Environment (Ministry of Natural Resources and Environment) said that CEAP will have a great impact on countries that are participating in the European market as well as those that want to enter the European market in the future, and Vietnam is one of those countries.

“The promulgated plan is a huge challenge for Vietnamese enterprises in the coming time. Because we need to make efforts to meet conditions in the plan, especially the seven heavily affected sectors. These sectors have achieved many results when entering markets, including the European market,” and this is a challenge that businesses need to make great efforts to continue developing their exports in production and business activities”, Dung said.

Chairman of the Directors Board of Hung Yen Garment Corporate Nguyen Xuan Duong said that the circular economy and green production are both challenges and opportunities. Opportunities for businesses to develop, integrate with the world and meet current market requirements.

After the EVFTA took effect, Hung Yen Garment's export turnover to the EU doubled, from about US$20 million to about US$40 million. However, the textile and garment sector has to satisfy regulations on the origin of the import market. If the origin requirements are not met, it is impossible to import to the EU under EVFTA and enjoy tariff benefits.

Sharing about the impact of green agreements in general and CEAP in particular, Duong said that market requirements are decisive, if enterprises do not meet the requirements, they cannot enter the market. Therefore, businesses have taken transformation actions such as converting all coal-fired boilers into electric boilers, or installing rooftop solar systems on all factories.

According to the representative of the European - American Market Department, CEAP or other EU regulations are both challenges and opportunities for businesses. When businesses have positive transformations and meet EU standards, they will open up great opportunities to enter the market and approach new customer groups.

“To prepare well, businesses need to update themselves with complete and accurate information. Because there may be pilot phases, and then regulations may be changed. Thereforce, businesses must outline a specific strategy” Hung noted.

“The current regulations are like this, but in the future they can be expanded to other areas, so businesses must equip themselves with correct, accurate, and complete information. That is why businesses must outline a specific strategy,” Mr. Do Huu Hung noted.