German chemicals firm BASF publishes carbon footprint for each product: exec

German-headquartered chemicals group BASF publishes the carbon footprint for all its products, showcasing its commitment to sustainability and transparency, says Erick Contreras, managing director of BASF Vietnam.

The company also offers customers multiple options including low-emission and medium-emission products, each at different price points, Contreras said Friday at a training conference on "Carbon border adjustment mechanism (CBAM) and carbon market: Opportunities and challenges for enterprises in Ho Chi Minh City."

The event was organized by the Ho Chi Minh City Investment and Trade Promotion Center (ITPC) in collaboration with EuroCham Vietnam.

Ho Thi Quyen, deputy director of ITPC, noted that while the EU ranked among the top five largest export markets for Vietnam, it was currently the most demanding market with strict environmental protection standards, including the proposed CBAM. This policy tool aimed to reduce carbon emissions from imported goods into the EU, she said.

Under the CBAM, imported goods with higher carbon emissions than their EU-produced counterparts will incur a tax, which will be calculated from the time of production until the goods enter EU territory. This tax aims to offset carbon emissions associated with goods produced in the EU.

Businesses have expressed concern that this tax would affect them significantly, posing challenges especially for exporting enterprises in the processing, manufacturing, and agricultural sectors in HCMC. In particular, it would put them at risk of losing market share to competitors who can better align with green policies, they argued.

Nguyen Thi Hai Van, senior director of legal and compliance at Suntory PepsiCo Vietnam, noted that Vietnam's substantial forest area and the government's encouragement for businesses to adopt green practices provide a favorable backdrop for the carbon market.

However, the country still needed to address its climate impact and reduce CO2 emissions, she said.

Duong Thi Thuy Mai, a carbon market analyst with Veyt, suggested that Vietnam learns from other countries' carbon markets, such as China. While piloting a carbon market in Vietnam was feasible, the country's diverse geography necessitated tailored approaches across different provinces and cities, she said. Veyt is a leading provider of data driven insights into low carbon markets.

Jean-Jacques Bouflet, vice president of EuroCham, remarked that the implementation of CBAM on January 1, 2026, would be crucial for Vietnamese exporters, especially in carbon-intensive sectors such as steel, cement, fertilizer and aluminum.

He said there was an urgent need to establish a legal framework for implementing the CBAM and to raise awareness among Vietnamese enterprises about reducing greenhouse gas emissions, achieving carbon neutrality, and enhancing adaptability and competitiveness in export markets.

The transition to green production was not only vital for individual companies but also impacts the entire supply chain, he stressed.

When suppliers reduce emissions, businesses within the supply chain are better positioned to achieve their own emissions reduction goals, he explained.