HCMC – Vietnam’s forest carbon credit market will officially adopt a floor-price mechanism for initial transfer transactions starting July 1 under a newly issued Government decree, establishing a unified legal framework for green finance and strengthening protections for forest owners.
Under Decree No. 180/2026/ND-CP, payments for forest carbon sequestration and storage services will be calculated in Vietnamese dong per ton of CO2 per ton of CO2 equivalent, or converted based on individual forest carbon credits.
For forest areas under public ownership, the minister of agriculture and environment will issue the methodology for determining payment levels, which will serve as the basis for pricing. Entities representing forest owners will be required to apply this methodology and ensure that the initial exchange or transfer price for each emissions reduction result or forest carbon credit does not fall below the established floor price.
For transactions intended for overseas markets, contract values may be denominated in foreign currencies but must comply with Vietnam’s foreign exchange management regulations.
The decree comes as forestry projects and green credit trading activities in Vietnam accelerate in support of the country’s greenhouse gas emissions reduction goals. However, the absence of standardized pricing mechanisms and clear ownership rules has created uncertainty for both local authorities and investors.
Authorities expect the introduction of floor pricing and the formalization of payment methods, either through direct payment or via entrusted disbursement through Vietnam Forest Protection And Development Fund system, to remove these bottlenecks and encourage greater private-sector investment in sustainable forestry.
Under the new rules, emissions reduction outcomes and forest carbon credits may enter circulation only after receiving official verification from the Ministry of Agriculture and Environment and must be traded either through contracts or on authorized exchanges.
To strengthen market discipline and prevent double counting, credits that have already been transferred under contract will be locked in the system, preventing suppliers from conducting additional transactions involving the same credits with third parties.
Revenue generated from commercial activities involving publicly owned forests managed by organizations will be prioritized for reinvestment in forest protection and development, support for local and indigenous livelihoods, project implementation, and the development and measurement of local forestry databases.
The decree also clarifies ownership responsibilities for emissions reduction outcomes. The Ministry of Agriculture and Environment will represent ownership for projects implemented by agencies under the ministry, while provincial governments will assume that role for locally managed projects. Forest owners that independently develop carbon projects will retain full ownership rights.
To participate in the market, buyers must operate legally under Vietnam’s investment and enterprise laws and comply with domestic exchange regulations. Sellers, meanwhile, must fulfill registration, measurement and reporting requirements, meet all tax and fee obligations, and ensure that transactions do not undermine Vietnam’s international emissions reduction commitments.
