Carbon market in Vietnam

On January 24, 2025, the Prime Minister of Vietnam issued Decision No. 232/QD-TTg provides for the establishment of a carbon market in Vietnam with the following milestones: 

1. Before June 2025 (preparation period): The legal framework for trading of emissions quotas and carbon credits and a carbon-credit offset exchange mechanism will be developed, along with the necessary infrastructure for organization and operation of the carbon-credit market. 

2.      From June 2025 to the end of December 2028 (pilot period): A pilot domestic carbon exchange will be launched, with continued legal refinements. 

3. From 2029 (official launch period): The carbon market will be fully operational. 

The Carbon market will function as a centralized, government-regulated market, trading two main assets including GHG emissions quotas (allowances) allocated to regulated emitters which can be traded or auctioned and carbon credits generated from domestic and international projects that are certified for trading.   Transactions of GHG emissions quotas and carbon credits will occur on the domestic carbon exchange, managed by the Hanoi Stock Exchange, and will follow a centralized process where verified quotas and credits receive unique domestic codes for trading and participants must have depository accounts. The Vietnam Securities Depository and Clearing Corporation will handle registration, depository, and payment services. Automated systems will process payments based on trade results, ensuring simultaneous asset transfer and payment settlement via qualified commercial banks.  For the pilot period, large GHG emitters, which will be allocated free emissions quotas, and organizations or individuals eligible for trading carbon credits can participate in the pilot carbon exchange. After that, the government will consider expanding participation in carbon-credit trading by adjusting eligibility conditions for organizations and individuals on the carbon exchange.