HCMC – Vietnam will begin piloting its domestic carbon market from June 2025, with a full launch slated for 2029, according to the Ministry of Finance.
The primary objective of the carbon market is to support Vietnam’s commitments under its Nationally Determined Contributions (NDCs) to reduce greenhouse gas emissions, generate new financing for emissions reductions, and foster a green transition.
The country is taking steps to address climate change by establishing a market where entities can trade carbon credits. These credits represent verified reductions in greenhouse gas emissions.
During the pilot phase, which will run until the end of 2028, the Government will focus on developing a robust legal framework for carbon trading, including regulations governing the exchange of emissions allowances and carbon credits.
Necessary infrastructure will be established to support the operation of the carbon market.
The market will function with transactions facilitated by an automated system operated by the Hanoi Stock Exchange (HNX). This system will ensure the simultaneous transfer of carbon credits and corresponding payments.
All greenhouse gas emission allowances will be considered for free allocation to facilities in major emitting sectors. Verified carbon credits will be traded on the carbon exchange.
These credits will be derived from domestic emissions trading and offsetting programs, the Clean Development Mechanism (CDM), the Joint Crediting Mechanism (JCM), and mechanisms under Article 6 of the Paris Agreement.
