BAC GIANG – For recent years, Vietnam has signed a number of free trade agreements, notably the EU – Vietnam Free Trade Agreement (FTA) taking effective from August 1, 2020.
The signed agreement has opened a new and promising period for localities, promoted cooperation, developed new and renewable energy as well as green growth. Also it brought many challenges.
The production line at Nichirin Vietnam Company Limited.
Bac Giang is considered a locality with a very open economy, so every new trend and development of the world economy has a strong impact on the local economy.
As an industrial development province attracting many large corporations and enterprises, the impact is even more obvious. Because these investors do multinational business and present in many countries around the world.
Currently, many countries participating in the FTA have initially established a cross-border carbon pricing mechanism, global trade and supply chains together with criteria of sustainable development, biodiversity, environmental protection, labor, human rights and anti-corruption.
Countries increase investment in green transformation and clean technology development; strengthen international links and cooperation in new fields.
EU countries which are the pioneers in the most comprehensive application of new standards have issued a series of measures to take effect within the next 2-3 years such as: Cross-border carbon adjustment mechanism; deforestation prevention and control act; regulations on supply chain appraisal. The above regulations have a profound impact on production and export, creating a number of immediate and long-term challenges for businesses nationwide in general and Bac Giang in particular.
Grasping the above regulations, Bac Giang has proactively developed green and renewable energy while striving to reach about 2.5 – 3 percent of the total primary energy supply by 2030. Accordingly, many businesses have invested in installing rooftop solar power.
Representative of Foxconn Group in Vietnam said that providing energy sources associated with green and sustainable goals is one of the solutions to increase the competitiveness of products. Therefore, the Group always encourages member businesses to use renewable energy in production and take care of workers' lives.
Together with Foxconn Group, many businesses in the province have paid attention to developing green and renewable energy, thereby saving costs and reducing product prices.
New regulations of advanced countries on imported goods are also an opportunity and motivation for the provincial enterprises to proactively and promptly grasp and adapt then transform the growth model towards greener and more sustainable way as well as promote the development of science, technology and innovation toward a higher position in the global value chain.
Taking advantages of the opportunity and the FTA, some suggested local businesses to change their thinking and act immediately in order not to miss a beat when new mandatory regulations are about to be applied.