The EU's Carbon Border Adjustment Mechanism (CBAM): Challenges and Opportunities for Eco-Industrial Parks in Vietnam

This paper analyzes the implications of the EU's Carbon Border Adjustment Mechanism (CBAM) on Vietnam's export-oriented industries, particularly those within Eco-Industrial Parks (EIPs). Utilizing a mixed-methods approach involving industry surveys (n=150 firms across EIPs and conventional IPs) and indepth case studies of five prominent EIPs, the study assesses the readiness of Vietnamese manufacturers to comply with CBAM requirements. Results indicate that while surveyed EIPs demonstrate an average 20-30% reduction in carbon emission intensity compared to conventional industrial zones, significant gaps remain in Measurement, Reporting, and Verification (MRV) systems and the adoption of advanced low-carbon technologies. Key challenges include limited technical capacity for carbon accounting, high upfront investment costs for green technologies, and regulatory ambiguities. However, CBAM also presents opportunities for EIPs to leverage their existing environmental performance, attract green investment, and enhance long-term competitiveness. The paper concludes by recommending a national strategy to bolster EIPs' competitiveness under CBAM, focusing on strengthening carbon accounting infrastructure, targeted financial and technical support for low-carbon technologies, and streamlining regulatory frameworks to foster industrial symbiosis and circular economy practices.