Vietnam’s steelmakers cut emissions with cleaner energy and upgraded production lines amid decarbonization push. (Photo: Hoa Phat)
The European Union’s Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2027, will impose carbon tariffs on high-emission imports. As one of Vietnam’s primary export destinations for steel, the EU’s new carbon pricing policy is expected to have a major impact on the Vietnamese steel sector.
In response to this growing external pressure, Vietnam’s two steel giants—Hoa Phat Group and Vietnam Steel Corporation (VNSteel)—are launching decarbonization initiatives and investing in green energy.
Hoa Phat launches 8 decarbonization measures
Founded in 1992 as a machinery and equipment trader, Hoa Phat has grown into one of Southeast Asia’s largest steel producers, exporting to over 40 countries. While steelmaking is known as a carbon-intensive industry, Hoa Phat is striving toward its 2050 carbon neutrality goal. The group—comprising five main companies and 18 subsidiaries—has completed a full carbon inventory across its operations by 2025, with certification from the British Standards Institution (BSI).
