Vietnam’s legal system is currently lacking an institutional mechanism for carbon labelling, photo Le Toan

The Department of Climate Change (DCC), under the Ministry of Agriculture and Environment, is working with international partners and consultants to implement voluntary carbon labelling for business products in Vietnam.

The initiative, sponsored by the Energy Transition Partnership, is to be carried out from now to May 2026. The target is to provide technical input and necessary support for the DCC to design and introduce a voluntary carbon labelling scheme, and prepare the private sector for carbon accounting and carbon emission reduction through a pilot programme in selected sectors.

It will assess the existing domestic policy framework and infrastructure and identify what is needed further for effective voluntary carbon labelling in Vietnam. Lessons learnt from international case studies will be used to propose enabling policies, regulations, and capacity-building measures for the Ministry of Agriculture and Environment.

According to the multidisciplinary consulting company RCEE-NIRAS, the programme will propose a design for voluntary carbon labelling, including technical components, certification and verification, institutional arrangements, implementation procedures, and capacity-building.

After that, the consultant unit will pilot the designed units in selected sectors based on a set of criteria. It will include awareness-raising, training, and communication activities to encourage the carbon labelling concept for Vietnam’s energy-intensive export sectors.

“Vietnam’s legal framework has no institutional mechanism for carbon labelling. The pilot implementation of a carbon labelling programme, based on voluntary participation, contributes to enhancing capabilities and increasing competitive advantages for businesses. In terms of technical support, the implementing agency aims to develop policies to assist the private sector in building capacity for inventory, assessment, and other sustainable development efforts,” said Hoang Anh, an expert at RCEE-NIRAS.

It is anticipated that 11 industry groups or sub-sectors will be affected by international mechanisms such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), which include energy-intensive and high-emission industries, as well as sectors currently impacted by energy transition policies.

“Thus, we are considering selecting these industries for qualitative and quantitative assessment. These industries include aluminium, cement, chemicals, electrical equipment, food processing, iron and steel, plastics, and more,” said Hoang Anh.

DCC deputy director Nguyen Tuan Quang said, “Carbon labelling will help reduce carbon leakage or carbon shifting between countries, which meets the demand of developed countries applying the CBAM. It will also be a solution to enhance the businesses’ competitive capacity in the context it is a short time before the EU imposes emission taxes.”

The transitional period for the CBAM began in October 2023 and will continue until the end of 2025. During this period, importers of goods must submit reports that include the carbon price due in the country of origin for the emissions. This primarily applies to goods with a high risk of carbon leakage, such as iron and steel, cement, aluminium, fertilisers, electricity, and hydrogen.

After the transitional period, importers will be required to acquire certificates corresponding to the carbon price applicable under EU rules. After the transitional period, importers will be required to acquire certificates corresponding to the carbon price applicable under EU rules.

Voluntary carbon labelling has been implemented in many countries and has proven highly successful in guiding businesses and citizens to recognise the importance of reducing greenhouse gas emissions through smart production and consumption activities.

The PWC’s 2024 Voice of the Consumer Survey, which collected the perspectives of more than 20,000 consumers from over 30 countries and territories, indicated that consumers are willing to spend an average of 9.7 per cent more on sustainably produced or sourced goods, even as cost-of-living and inflationary concerns weigh.

The survey also suggested that more than 80 per cent of consumers said they are willing to pay more for sustainable produced or sourced goods. In terms of a price premium, some consumers are willing to pay on average 9.7 per cent more for goods that meet specific environmental criteria, including locally sourced, made from recycled or eco-friendly materials, produced in a supply chain with a lower carbon footprint, and more.

Sabine Durand-Hayes, global consumer markets leader of PwC France, said, “Consumers are increasingly feeling the squeeze of inflation and rising prices in essential goods such as groceries, however in that context, they are prioritising products that are sustainably produced and sourced. In the year ahead, companies must balance consumer affordability and environmental impact if they are to source and retain consumers.”

Around the world, many businesses have adopted carbon labelling and reaped significant benefits. In Japan, companies like Panasonic and Sony implemented this work for electronic products, boosting sales by meeting the demands of environmentally conscious consumers. Similarly, in Europe, major retailers such as Tesco and Marks & Spencer have applied carbon labelling to food products, enhancing brand image.

According to a report by The Business Research Company (January 2023), the global food and beverage market is projected to reach $9.23 trillion by 2027, with a compound annual growth rate of 6.3 per cent. However, businesses in the sector face multiple challenges, including surging raw material costs, escalating logistics expenses, limited product preservation solutions, and mounting pressure to comply with stringent environmental regulations.

To support Vietnamese F&B businesses in overcoming these challenges, staying ahead of industry trends, and fostering sustainable growth, Tetra Pak will introduce its ecosystem of innovative solutions at ProPak Vietnam 2025. The event will take place from March 18-20 at the Saigon Exhibition and Convention Centre in Ho Chi Minh City.

Tetra Pak showcases cutting-edge solutions at ProPak 2025

Under the theme “Unlocking the Future”, the event will present comprehensive solutions for the F&B industry, covering everything from product ideation and smart manufacturing to sustainable packaging and cost optimisation. Among the key highlights are the following three breakthrough solutions:

Innovative packaging solution for food – Tetra Recart

With over 70 years of global experience, Tetra Pak continues to push the boundaries of packaging innovation to ensure food safety, enhance quality, and drive sustainability. Currently, Tetra Pak’s paper-based cartons consist of 80 per cent paper and 90 per cent renewable materials, significantly reducing their environmental impact.

A standout in the packaging portfolio is Tetra Recart, a retortable paper-based packaging solution designed for canned food applications. This packaging can withstand heat up to 130°C during the sterilisation process. Compared to traditional metal and glass packaging, Tetra Recart reduces storage space by 30 per cent and lowers operational costs by 60 per cent, making it a game-changer for food manufacturers.

Tetra Recart – the sustainable packaging solution for food

At ProPak 2025, visitors will have the opportunity to experience firsthand the convenience of Tetra Recart and discover how this innovative packaging preserves food quality and flavour for 12 months without the need for preservatives.

A special highlight of the event will be a live cooking demonstration by Chef Huynh Hoang Sin (MasterChef Vietnam Season 2), who will prepare dishes using products packaged in Tetra Recart on March 19. Additionally, on the same day, businesses can gain in-depth insights and engage in expert discussions on this breakthrough packaging solution with Tetra Pak specialists at the Vietnam Packaging Forum 2025.

Digitalisation and automation solutions

To meet the growing demand for scalability, operational cost reduction, consistent product quality, and environmental sustainability, Tetra Pak introduces its digitalisation and automation solution – Tetra Pak PlantMaster. This advanced solution has set new industry standards for food safety and quality enhancement, empowering businesses worldwide to drive sustainable growth through smart, automated operations.

Automation and digitalisation solutions to optimise costs

Businesses can gain insights and engage in discussions with Tetra Pak experts on this cutting-edge solution at the DrinkTech Forum on March 19. The Tetra Pak PlantMaster solution has proven to enhance production efficiency, increase data transparency, and improve operational performance – critical factors in mitigating the rising costs of operations.

End-to-end solution

As consumer demands become increasingly diverse and dynamic, many businesses aim to launch new products but face challenges in research costs and initial investment. At booth AB9, expert consultants from the Bloom Innovation & Product Development Centre will introduce Tetra Pak’s comprehensive journey, guiding customers from market data analysis and prototype testing to full-scale market launch within just 6-12 months. Here, businesses will have the opportunity to sample innovative beverage products developed at Bloom and explore tailored solutions that align with their growth objectives.

Bloom Innovation & Product Development Centre – turning ideas into market-ready products in just 6–12 months

With global expertise and deep market insights in Vietnam, industry-leading innovations from companies like Tetra Pak are paving the way for a more sustainable F&B sector. These comprehensive solutions not only optimise production processes but also contribute to the development of a modern, environmentally friendly economy. For in-depth information and hands-on experiences with Tetra Pak’s cutting-edge solutions, visitors can visit booth AB9 at ProPak Vietnam 2025.

The loan will be used to expand the Vinschool education system, providing educational facilities for 20,400 students in urban areas of Hanoi, Ho Chi Minh City, and Hung Yen.

“This project marks ADB’s first private sector investment in Vietnam’s education sector and highlights our commitment to fostering sustainable development in the country,” said ADB country director for Vietnam Shantanu Chakraborty. “By supporting the country’s first sustainability-linked loan in the education sector, we aim to enhance educational infrastructure while contributing to new residential hub development in the country.”

ADB has syndicated and structured a financing package that includes a $40 million loan from ADB Ordinary Capital Resources, a $35 million loan from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2) administered by ADB, and $75 million in parallel loans.

The parallel loans comprise $40 million from ILX, an Amsterdam-based emerging market asset manager, and $35 million from the Emerging Africa & Asia Infrastructure Fund, an emerging market infrastructure debt fund established by the Private Infrastructure Development Group and managed by NinetyOne. The loan has been validated through a second-party opinion from DNV Business Assurance Vietnam Co., Ltd.

Vietnam has made significant progress in expanding education coverage, achieving an impressive 98 per cent literacy rate and over 98 per cent primary education enrolment. However, as the nation strives to transition from a developing to a middle-income country, there is a critical need to improve education quality and enhance education access in rapidly urbanising cities. The private sector, including institutions like Vinschool, is vital in bridging this gap.

“We are delighted to partner with ADB and other impact-focused lenders on this groundbreaking initiative. This investment will enable us to provide high-quality learning opportunities to more students while setting a benchmark for sustainable education in Vietnam,” said Vinschool CEO Phan Ha Thuy. “This is a project that underscores Vinschool’s commitment to environmental, social, and governance principles, reinforcing its dedication to sustainable development.”

LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable healthcare, education, and communication services to ADB’s developing member countries.

Established in 2013, Vinschool is the largest private school system in Vietnam, offering high-quality education from kindergarten to high school. Vinschool currently serves more than 48,000 students across 54 campuses in Hanoi, Ho Chi Minh City, and four other provinces, offering both national curriculum and Cambridge bilingual programmes. Vinschool is a subsidiary of Vingroup JSC, one of Vietnam’s largest conglomerates.