Việt Nam pushes ahead with carbon market rollout

Việt Nam pushes ahead with carbon market rollout

Việt Nam is moving into the implementation phase of its carbon market, with policymakers and experts urging stronger legal frameworks and improved business readiness to ensure effective participation, heard a forum in Hà Nội on Friday.

A view of Côn Đảo Island with its diverse forest and marine ecosystem, potential for carbon credit. Green transition is no longer optional but a prerequisite for Vietnamese firms seeking to integrate into global markets. — VNA/VNS Photo Huỳnh Sơn

The event, organised by the Vietnam Chamber of Commerce and Industry (VCCI) with support from Australia, highlighted the growing importance of carbon markets as part of global economic transformation and climate commitments.

The country has spent more than a decade preparing for the market, which is expected to play a central role in achieving its net-zero emissions target by 2050. The system will operate on three pillars, including emissions quotas, domestic carbon credits and international trading mechanisms.

A pilot phase is scheduled from 2026 to 2028 to help businesses adapt and allow regulators to refine infrastructure and policies before full-scale implementation.

“Carbon markets are not just about paying for emissions, but about recognizing innovation and clean technologies,” said Hoàng Quang Phòng, vice chairman of VCCI, adding that participation could help firms optimise costs, enhance reputation and access green finance.

However, he noted that companies must comply with increasingly stringent regulations and develop internal capacity, particularly in greenhouse gas (GHG) accounting and reporting.

According to Đỗ Thanh Lâm from the Ministry of Finance, the carbon trading exchange must operate on principles of transparency, fairness and strict risk control.

He said the Hanoi Stock Exchange will provide trading services, while the Vietnam Securities Depository and Clearing Corporation will handle custody and settlement.

Three types of carbon credits will be eligible for trading, including domestic credits, credits generated under international mechanisms and those created under Article 6 of the Paris Agreement, he said, adding that during the pilot phase through 2028, infrastructure services will be provided free of charge to encourage participation.

Lâm urged businesses to proactively strengthen legal compliance, corporate governance and technical capacity while developing appropriate trading strategies to navigate the emerging market.

Citing Australia’s experience, Lachlan Simpson, counsellor, Department of Climate Change, Energy, Environment and Water (DCCEEW), Australian Embassy, said implementation roadmaps and credibility matter more than any single policy design.

He added that one of the biggest global challenges is not demand but the supply of high-quality, credible carbon credits.

Phạm Nam Hưng from the Climate Change Department under the Ministry of Agriculture and Environment highlighted the importance of robust emissions data systems as a foundation for the market.

Việt Nam is also working to digitalise monitoring, reporting and verification (MRV) systems through online platforms to support businesses and regulators in tracking and validating emissions data. However, challenges remain, especially in data collection and reporting costs, he said.

Currently, greenhouse gas inventories are conducted every two years under environmental regulations, but Hưng said more frequent reporting, potentially annually or quarterly, will be needed to ensure effective market operation.

Việt Nam is also developing a national registry for emissions and carbon market transactions, which will serve as a centralised platform for reporting, compliance and trading activities.

Green transition is no longer optional but a prerequisite for Vietnamese firms seeking to integrate into global markets, Vũ Thị Châu Quỳnh, deputy director of the Ministry of Finance’s Legal Department, said.

She urged companies to treat carbon credits as financial assets, invest in dedicated personnel to manage them and build long-term strategies to optimise compliance costs, including through technology upgrades or participation in carbon trading mechanisms. 

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