Vietnam Carbon Market Development

Snapshot

  • Status: Transitioning from design → pilot implementation

  • Market type: Emissions Trading Scheme (ETS) + carbon credits

  • Launch timeline:

    • Pilot: 2026–2028

    • Full operation: from 2029

  • Lead agencies: Ministry of Agriculture & Environment (MAE), Ministry of Finance

  • Trading platform: Hanoi Stock Exchange

 Why it matters

  • Supports Vietnam’s net-zero 2050 commitment

  • Helps firms respond to EU CBAM and global carbon rules

  • Creates new fiscal space for green investment

  • Positions Vietnam as an ASEAN leader in carbon market design

Policy Architecture (at a glance)

Core legal foundation

  • Law on Environmental Protection (2020)

  • Decree 06/2022 (GHG mitigation & carbon market rules)

Recent key updates

  • Decision 232/QĐ-TTg (2025): National carbon market roadmap

  • Decision 13/2024/QĐ-TTg: Expanded mandatory GHG inventory sectors

  • Decree 29/2026/NĐ-CP: Establishes domestic carbon exchange

System backbone

  • Mandatory MRV (over 2,000 firms)

  • National registry + trading platform

  • Integration with financial market infrastructure

Timeline: Vietnam Carbon Market Rollout

2012–2020     Policy foundations (carbon credits, climate strategies)
2020                    Legal basis (LEP 2020)
2022                    Decree 06 + GHG inventory system
2024                    Expanded sector coverage (Decision 13)
2025                    Carbon market master plan approved (Decision 232)
2026                    Trading rules formalised (Decree 29)
2026–2028      Pilot ETS + exchange platform
2029 →                Full national carbon market

 

 How the market will work

Pilot phase (2026–2028)

  • Selected sectors participate

  • Free allocation of emission quotas

  • Trial trading of:

    • Domestic carbon credits

    • International credits (Article 6, CDM, JCM)

  • Build MRV, registry, and trading systems

Full phase (from 2029)

  • Nationwide ETS

  • Mix of:

    • Free allocation

    • Auctioning of allowances

  • Expanded sector coverage

  • Potential linkage with international markets

Market infrastructure

  • Trading: Hanoi Stock Exchange

  • Registry & settlement: Vietnam Securities Depository

  • Payments: Commercial banks

  • Governance: Centralised, state-managed system

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