Carbon neutrality: 'Priority pass' into the global value chain

In a rapidly warming world, carbon is no longer merely an environmental issue; it has become a key economic variable. From the EU's Carbon Border Adjustment Mechanism (CBAM) to stringent ESG requirements imposed by investors, greenhouse gas (GHG) emissions now directly determine a company's market access and competitive position. In Viet Nam, this journey has moved beyond the stage of "encouragement" to become a survival strategy, as the roadmap for a domestic carbon market is gradually taking shape.

New rules of the global market

Carbon neutrality refers to a state of balance between the volume of GHG emissions generated and the amount absorbed or offset through carbon credit projects. It serves as a critical stepping stone toward achieving Net Zero emissions, where businesses are required to make substantive cuts of 90–95% of their total emissions.

Pressure is now mounting from all directions. According to the World Bank, more than 70% of global emissions originate from supply chains, making multinational corporations tighten Scope 3 emission requirements for their suppliers. Domestically, the Government has committed to achieving Net Zero by 2050. Under the established roadmap, Viet Nam’s domestic carbon market will undergo a pilot phase through December 31, 2028, before entering nationwide operation from January 1, 2029. At that point, carbon emissions will no longer be an "invisible cost" but a tangible financial expense directly impacting corporate profitability.

To date, Viet Nam has six enterprises certified as carbon neutral under the international PAS 2060:2014 standard, reflecting a strong transformation across both the private sector and state-owned enterprises.

For instance, Vinamilk has seen three of its units, including two factories and one farm, complete emissions inventories and obtain international carbon neutrality certification under PAS 2060:2014. Meanwhile, TH Group has emerged as a pioneer, with TH Milk JSC and Nui Tien Pure Water Co., Ltd. achieving PAS 2060:2014 carbon neutrality certification. Petrolimex has also made its mark as the first state-owned enterprise to receive PAS 2060:2014 carbon neutrality validation, underscoring its commitment to emissions control across its entire system.

In addition, many other major corporations are implementing emission reduction roadmaps. Petrovietnam has launched a 1 GW offshore wind power project and upgraded its refining and petrochemical technologies. EVN is developing a roadmap to transition fuel sources for aging coal-fired power plants while increasing the share of renewable energy.

VinGroup has become a symbol of green transport, with its VinBus system helping cut nearly 41,000 tons of CO₂ after three years of operation. Viettel is implementing a "green telecommunications network" program that reduces total system-wide energy consumption by 5%. Meanwhile, Viet Nam Rubber Group (VRG) has made a strategic mark by officially launching the "VRG GREEN" certification trademark, representing green, low-emission, and transparent rubber products that meet stringent environmental and sustainable development standards.

Viet Nam currently ranks among the world's top four countries in terms of voluntary carbon credit projects, with more than 300 registered projects. Several enterprises have successfully sold carbon credits to international organizations. For example, credits generated from clean water filtration projects (which reduce cooking fuel consumption) were sold to the World Economic Forum (WEF) at approximately USD 10/credit, while credits from solar power projects were sold to FIFA at around USD 5 /credit.

Under the roadmap, Viet Nam's domestic carbon market will undergo a pilot phase through the end of 2028, then enter official nationwide operations from early 2029. The Ministry of Agriculture and Environment will serve as the authority managing the National Registration System for GHG emission allowances and carbon credits. In this context, proactive carbon neutrality roadmaps are not merely environmental commitments for businesses but also strategic steps to prepare for participation in carbon markets, strengthen competitiveness, and integrate into global value chains.

Roadmap for businesses: No time for delay

To avoid falling behind in the low-carbon era, enterprises need comprehensive strategies rather than short-term campaigns. Such strategies should clearly define the following steps:

First, inventory and measurement: accurately determine "carbon footprint" in line with international standards.

Second, identify opportunities: prioritize low-cost emission-reduction solutions, particularly energy-efficiency measures.

Third, invest in technology: transition to renewable energy and optimize production processes.

Fourth, responsible offsetting: utilize high-quality carbon credits to offset unavoidable emissions.

Fifth, information transparency: Publish emissions reports to build market trust and avoid "greenwashing."

The journey toward carbon neutrality can be likened to building an "armor" to protect enterprises against impending carbon taxes and trade barriers. Early movers are not only protecting the planet but also securing a "priority pass" to enter the global value chains in the future.

Green transformation is delivering tangible economic efficiency. A report by McKinsey indicates that early investment in emissions reduction can help businesses cut energy costs by 10–20% in the medium term. Achieving carbon neutrality certifications under standards such as PAS 2060:2014 or ISO 14068:2023 also serves as a "passport," enabling enterprises to access green financing at preferential interest rates and stabilize operating costs amid volatile fossil fuel prices.