Government Decree No. 29/2026/ND-CP, which took effect on January 19, 2026, has moved Vietnam’s domestic carbon market from the stage of outlining a roadmap to establishing an operational regulatory framework. Unlike earlier policy-oriented instruments such as Decree No. 06/2022/ND-CP or Decree No. 119/2025/ND-CP, this new decree concretizes the “rules of the game” for the pilot phase through the end of 2028 by clearly delineating the powers and responsibilities of each stakeholder, while firmly establishing principles for supervision and systemic risk management. One notable feature of the operating model is the use of existing securities market technical infrastructure, while explicitly not classifying carbon commodities as securities. Accordingly, market discipline and risk governance are placed at the forefront. This cautious approach may mean that trading activity is not particularly vibrant in the early stages, but it provides an essential foundation for ensuring transparency before the market transitions to full-scale operation from 2029 onward. A three-tier market structure built on national data The core significance of Decree No. 29/2026/ND-CP (Decree 29) lies not merely in the establishment of a trading platform, but in shaping a market structure based on securities market operating principles such as centralized trading, clearing and settlement, and original data […]