[Vietnam] CBAM Could Raise EU Steel Export Costs, Pushing Vietnamese Mills to Accelerate Decarbonisation

Published: Aug 27, 2026 15:16

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Vietnamese steel exporters face increasing cost pressure from the EU’s Carbon Border Adjustment Mechanism (CBAM), with industry estimates suggesting carbon-related costs could exceed USD100/tonne of steel for producers with high emission intensity. For a shipment of 100,000 tonnes to the EU, the additional carbon cost could reach around VND300 billion, equivalent to approximately 20% of the order value under the cited assumptions. Meanwhile, Hoa Phat is strengthening its CBAM response by allocating around 30% of investment in its production complexes to environmental improvements, maintaining greenhouse-gas inventories and calculating product carbon footprints under ISO standards, as Vietnamese mills seek to preserve competitiveness in the European market.

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