From carbon accounting to competitiveness: How Vietnam-based manufacturers should prepare for CBAM

Vietnam’s Taiwanese manufacturers are among the first to face CBAM pressure. (Photo: Unspalsh)

Vietnam has become a key manufacturing hub for Taiwanese businesses in Southeast Asia. As the EU’s Carbon Border Adjustment Mechanism (CBAM) moves closer to full implementation, industries ranging from electronics and textiles to steel and cement are coming under growing pressure to manage carbon related costs. What are the most common mistakes companies make when conducting carbon inventories, and how can they prepare for the changes ahead?

At a seminar in Ho Chi Minh City this June titled “From Compliance to Competitiveness: A 2026 Decarbonization Playbook for Taiwanese Businesses in Vietnam,” RECCESSARY carbon market analyst Sherry Hu will share insights from the field. She argues that with CBAM entering its implementation phase, Taiwanese manufacturers in Vietnam are approaching a critical moment, one that could reshape their competitiveness in global supply chains.

Why Vietnam has become a key market for corporate decarbonization

To understand why Vietnam has emerged as a frontline market for CBAM, it is worth first examining the investment footprint of Taiwanese businesses. According to a survey by the Chung-Hua Institution for Economic Research, Vietnam is home to more than half of all Taiwanese companies operating in ASEAN, with 3,463 firms based in the country. This concentration is significantly higher than the roughly 30% share of global foreign investment in Vietnam, underscoring the country's central role in Taiwanese supply chains.

Unlock the full article to explore three key takeaways:

1. Vietnam sits on the front line of CBAM implementation. More than half of Taiwanese businesses operating in ASEAN are based in Vietnam. Combined with the country's coal dependent power mix, factories in Vietnam tend to have higher carbon footprints, making them among the first in the supply chain to face pressure from European buyers.
2. The most common carbon accounting mistakes have little to do with technical expertise. Instead, they stem from poor data management, unreliable supplier emissions data, and an overreliance on single tools. Under CBAM, companies unable to provide actual emissions data risk being assigned higher default emissions values by the EU, increasing their carbon costs.
3. Companies should first establish organizational and product level carbon inventories, then target emissions intensive operations for decarbonization. Early communication with customers on low carbon strategies is also critical. Building credible, verifiable carbon management capabilities can help secure long-term business relationships with global buyers.