Challenges and Opportunities for Vietnam’s Logistics Sector Amid EU Carbon Border Tax Implementation

1. EU Carbon Border Tax – A Major Shift in Global Trade

Starting January 1, 2026, the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) will officially take effect following a transition period from 2023 to 2025. Under this regulation, exporters to the EU will be subject to carbon taxes if their products exceed the emission standards set by the bloc.

While CBAM initially applies to high-emission industries such as steel, aluminum, cement, fertilizers, and electricity, the logistics sector will also face indirect impacts as the EU enforces greater transparency in carbon emissions reporting throughout supply chains.

In addition to CBAM, the Corporate Sustainability Reporting Directive (CSRD) will require companies to publicly disclose greenhouse gas emissions and sustainability efforts. This policy may affect Vietnamese logistics providers if they are part of EU companies’ supply chains.

2. Challenges for Vietnam’s Logistics Industry

2.1. Rising Transportation Costs

Vietnam's logistics sector heavily relies on fossil-fuel-powered transport, including ships, trucks, and aircraft. The introduction of CBAM could lead to:

• Higher freight costs, reducing the competitiveness of Vietnamese exports to the EU.
• Volatility in shipping rates, as carriers adjust costs to comply with carbon tax regulations.
• Increased costs for emissions tracking and reporting, placing pressure on small and medium-sized logistics firms.

2.2. Growing Competition from Global Logistics Leaders

Leading logistics companies from developed nations have already invested in green technologies, such as:

• LNG-powered or carbon-neutral vessels.
• Electric trucks and alternative fuel vehicles.
• AI-driven logistics optimization to reduce fuel consumption and emissions.

Vietnamese logistics companies risk losing market share if they fail to transition toward eco-friendly transport solutions.

2.3. Business Model Transformation Is Unavoidable

CBAM is not just a trade barrier but a catalyst for innovation. Logistics companies must:

• Optimize transportation routes to reduce fuel consumption and emissions.
• Invest in green transportation, such as electric vehicles, biofuel-powered trucks, and LNG-fueled ships.
• Adopt smart logistics management systems to enhance efficiency and minimize energy waste.

However, high initial investment costs pose challenges, particularly for smaller logistics firms.

3. Strategic Solutions for Vietnam’s Logistics Industry

3.1. Adopting Green Logistics and Technology

At the "Green Logistics – A Sustainable Future" conference hosted by the Vietnam Logistics Business Association (VLA) on February 12, 2025, experts highlighted key strategies, including:

• Utilizing AI and software to optimize transport routes and reduce fuel consumption.
• Transitioning to electric and biofuel-powered vehicles, such as CNG and LPG trucks.
• Integrating multimodal transport solutions (sea – rail – road) to minimize carbon footprints.
• Regular maintenance and efficiency monitoring to ensure vehicles operate at optimal energy levels.

3.2. Strengthening International Partnerships & Technology Transfers

Vietnamese logistics firms should collaborate with global partners to leverage green technology advancements and gain access to sustainable transport solutions.

3.3. Government Support and Policy Incentives

VLA Chairman Dao Trong Khoa emphasized that government intervention is crucial in helping logistics firms comply with CBAM by:

• Providing tax incentives for green investments.
• Offering financial aid and training on carbon accounting.
• Developing standardized carbon emission tracking systems to align with EU requirements.

According to Dao Trong Khoa, while CBAM presents significant challenges for Vietnamese exporters, it also provides an opportunity for businesses to innovate and embrace sustainability. The key logistics challenges include compliance, reporting, infrastructure upgrades, and potential supply chain disruptions, all of which require strategic planning and investment.

4. Conclusion

The EU’s CBAM will have a significant impact on Vietnam’s logistics industry, particularly for businesses exporting to Europe. While the policy creates cost pressures and increases competition, it also encourages investments in green logistics, supply chain optimization, and long-term sustainability.

To adapt, Vietnamese logistics firms must adopt a forward-thinking approach, integrating green technologies, strengthening partnerships, and leveraging government support.

Real Logistics will continue monitoring CBAM developments and providing insights into sustainable logistics trends, helping Vietnamese businesses seize opportunities and overcome challenges in the global trade landscape.

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