International Trade Law in the Context of Green Transition: Opportunities, Challenges, and Orientations for Vietnam

The event was academically chaired by the Department of Multilateral Trade Law and International Lawyer Studies under the Faculty of International Law, with the participation of numerous scholars, experts, lawyers, and business representatives. The conference aimed to analyze and discuss theoretical, legal, and practical issues concerning the “greening” of international trade, while identifying the legal challenges and opportunities facing Vietnam in the process of integration and sustainable development.

Green Transition – From a Global Trend to a Legal Requirement in International Trade

In his opening remarks, Assoc. Prof. Dr. Nguyen Ba Binh from Hanoi Law University emphasized that “the green transition is not only a global trend but also an inevitable legal requirement that profoundly influences Vietnam’s integration process.”

From that perspective, the university-level scientific conference themed “International Trade Law in the Context of Green Transition,” organized by Hanoi Law University, became an important academic forum contributing to clarifying legal, policy, and practical issues arising in the process of “greening” Vietnam’s economy.

In recent years, the world has witnessed a strong shift in international trade policy toward sustainability. Major economies such as the European Union (EU), the United States, and Japan have introduced a range of green legal instruments, including the Carbon Border Adjustment Mechanism (CBAM), anti-deforestation regulations, sustainable supply chain requirements, and mandatory emission reporting. These measures have created new “green barriers,” reshaping the structure of global trade.

For developing countries, including Vietnam, green requirements are not only challenges to compliance capacity but also opportunities to restructure production and trade models toward environmental friendliness and to enhance the legal value embedded in next-generation Free Trade Agreements (new-generation FTAs).

The conference affirmed that the green transition is no longer a political slogan but has become an international legal obligation closely linked to the implementation of the 2015 Paris Agreement on Climate Change, the United Nations Sustainable Development Goals (SDGs), and the climate commitments made at COP26, to which Vietnam is a party.

The international trade law system under the challenge of “greening”

In the opening presentation, Dr. Tran Anh Tuan (Department of International Law, Ministry of Justice) emphasized that Vietnam is directly affected by green standards embedded in multilateral and bilateral trade commitments. Although FTAs such as the CPTPP, EVFTA, and UKVFTA offer significant opportunities, they also impose stringent requirements on compliance with environmental, labor, and sustainable governance standards.

Md. Pham Thanh Hang (Faculty of International Law – Hanoi Law University) presented a study on trade measures related to climate change mitigation and their compatibility with WTO law, highlighting that the “greening” trend is being legalized through provisions of the GATT, the Agreement on Subsidies and Countervailing Measures (SCM), and the Agreement on Technical Barriers to Trade (TBT). However, balancing trade liberalization with environmental protection remains a major challenge.

Also at the conference, Assoc. Prof. Dr. Nguyen Ngoc Ha (Foreign Trade University) addressed the issue of “green subsidies” – a policy instrument adopted by many countries to encourage businesses to shift toward sustainable production models. He recommended that Vietnam should soon develop its own legal framework for green subsidies to avoid being deemed in violation of WTO anti-subsidy rules while taking advantage of environmental exceptions.

New-generation free trade agreements (FTAs) are increasingly incorporating mechanisms for environmental dispute settlement. Doctor Tao Thi Hue (Faculty of International Law – Hanoi Law University) stated that Vietnam needs to be well-prepared in terms of international legal human resources to participate in trade–environment disputes, while also enhancing its policy advocacy capacity at multilateral forums such as the WTO, APEC, and ASEAN.

CBAM will compel many Vietnamese enterprises – particularly those in the steel, cement, aluminum, and fertilizer sectors – to reconsider their entire production processes if they wish to avoid being subjected to high carbon tariffs when exporting to Europe. Consequently, it raises the issue that Vietnam’s trade and environmental legal systems must soon be harmonized to ensure compatibility and safeguard national interests in international trade.

New-generation free trade agreements (FTAs) are increasingly incorporating mechanisms for environmental dispute settlement. Doctor Tao Thi Hue (Faculty of International Law – Hanoi Law University) stated that Vietnam needs to be well-prepared in terms of international legal human resources to participate in trade–environment disputes, while also enhancing its policy advocacy capacity at multilateral forums such as the WTO, APEC, and ASEAN.

In fact, numerous international disputes involving environmental and trade issues are currently taking place, reflecting the growing trend of legalization of green commitments. Understanding and applying key principles such as the “polluter pays” principle, “sustainable development”, and the “extended producer responsibility (EPR)” are essential for Vietnam to become more proactive in policy-making and trade negotiations.

Improving Laws and Policies: Directions for Vietnam

From an overall perspective, the conference reached a consensus on four key directions for improving international trade law in the context of the green transition:

Developing a unified legal framework for sustainable trade, in which “green transition” is integrated into specialized laws such as the Law on Commerce, the Law on Environmental Protection, the Law on Investment, and the Law on Energy.

Issuing policies to support enterprises in greening their supply chains, particularly small and medium-sized enterprises – the group most affected by international green regulations.

Developing high-quality legal human resources to participate in negotiations, dispute resolution, and policy consulting in trade–environment matters.

Promoting research and international cooperation in the field of green trade law, aiming to establish a “Green Legal Knowledge Center” at Hanoi Law University – a hub connecting scholars, regulatory agencies, and enterprises.

In his concluding remarks, Assoc. Prof. Dr. Nguyen Ba Binh, Vice President of Hanoi Law University, emphasized that “today’s conference is not only an academic event but also an affirmation of the responsibility of Vietnam’s legal academia in the green transition process – where the law not only regulates behavior but also guides sustainable development.”

In the context of Vietnam’s goal of achieving net-zero emissions by 2050, the “greening” of international trade law serves as a key to deeper integration into the global economy. Therefore, the conference concluded not merely with scholarly presentations but also opened a strategic pathway for legal research and policy development in Vietnam during the green era.