Establishing Vietnam’s Carbon Market: A Strategic Step Toward a Green Economy and Global Integration

The Vietnamese Government is accelerating the development and operation of a domestic carbon market while finalizing the legal framework for international carbon credit exchange. This move is seen as a critical step toward fulfilling greenhouse gas reduction commitments, promoting green growth, and enhancing Vietnam’s position in the global climate value chain.

On March 25, 2026, the Government issued Resolution No. 67/NQ-CP to implement Resolution No. 247/2025/QH15 of the National Assembly on improving the effectiveness of environmental policies. The plan goes beyond pollution control, aiming to transform the economic model toward a circular and green economy in line with global trends.

One of the key highlights of this policy is the establishment and operation of a domestic carbon trading exchange. The Ministry of Finance, together with the Ministry of Agriculture and Environment, has been tasked with developing this system to facilitate the trading of emission allowances and carbon credits. At the same time, the Ministry of Agriculture and Environment will take the lead in finalizing legal regulations governing the exchange of greenhouse gas emission reduction results and carbon credits with international partners, including determining the proportion of credits allowed for international transfer.

A notable aspect of the policy is the requirement to balance economic benefits with national emission reduction targets under the Nationally Determined Contributions (NDC). This means Vietnam will not export all carbon credits but must retain a minimum share to meet its domestic climate commitments.

In parallel with building the carbon market, the Government has instructed ministries and sectors to review and update greenhouse gas reduction plans for each industry during the 2026–2035 period. Key sectors such as energy, construction, and industry will need to integrate low-emission targets into their development strategies, thereby creating a domestic supply of carbon credits.

From a practical perspective, the formation of a carbon exchange is not only an environmental management tool but also the foundation for a new financial market. International experience shows that systems such as the EU Emissions Trading System (EU ETS) and China’s carbon market have demonstrated how carbon pricing can drive technological innovation, reduce reliance on fossil fuels, and enhance competitiveness.

For Vietnam, the potential for developing a carbon market is significant, particularly in sectors such as renewable energy, sustainable agriculture, and forestry. Projects under mechanisms like REDD+ or clean energy transitions could generate substantial carbon credits if aligned with international standards such as Article 6 of the Paris Agreement.

However, challenges remain. Measurement, reporting, and verification (MRV) systems are still developing, and businesses vary in their capacity for carbon management. There is also a risk of undervaluing carbon credits if pricing mechanisms and regulatory controls are not carefully designed.

To address these issues, the Government has introduced Decree No. 29/2026/NĐ-CP, which provides detailed regulations on the operation of the domestic carbon exchange, including registration, issuance of codes, trading, custody, and information disclosure. This serves as a critical legal foundation for ensuring transparency and alignment with international standards.

Overall, the establishment of a carbon market is not only an environmental requirement but also an opportunity to restructure the economy. If implemented effectively, the carbon exchange will act as a bridge between climate goals and economic growth, enabling Vietnam to reduce emissions while attracting green investment flows from around the world.