Key Takeaways

• Vietnam will launch a carbon trading platform trial by end-2025, aligning with its net-zero 2050 goals and global climate commitments.
• Businesses must prepare for new compliance obligations, carbon offset costs, and export-related risks such as the EU’s CBAM.
• Early adopters can gain competitive advantages through credit generation, sustainability branding, and access to green financing.

In a landmark move toward sustainable economic transformation, Vietnam is preparing to launch a national carbon trading platform on a trial basis by the end of 2025. This development marks a critical step in the country’s broader strategy to achieve net-zero emissions by 2050, as pledged at the 26th United Nations Climate Change Conference (COP26). As one of Southeast Asia’s fastest-growing economies, Vietnam is now taking bold action to integrate climate considerations into market mechanisms, aligning its domestic policies with global carbon pricing frameworks and green transition targets.

The carbon trading platform—backed by newly issued legislation and a comprehensive national roadmap—aims to institutionalise the buying and selling of carbon credits between businesses, government entities, and international partners. At its core, the platform will serve as a regulated marketplace where companies can offset their greenhouse gas (GHG) emissions by purchasing certified credits from emission reduction projects across sectors such as renewable energy, forestry, agriculture, and waste management. This initiative is expected to play a vital role in shaping how industries manage their environmental responsibilities, especially in energy-intensive sectors like manufacturing, aviation, shipping, cement, and steel.

For businesses, the implications are substantial. The introduction of a carbon market not only creates new compliance requirements but also opens avenues for cost optimisation, competitive advantage, and access to global green supply chains. Companies that proactively decarbonise operations and generate verifiable credits could become key suppliers in the emerging carbon economy, while those that lag behind risk financial penalties, trade barriers, and reputational damage. The urgency is further heightened by external forces such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will impose tariffs on high-carbon imports unless exporters demonstrate effective carbon management and offsetting strategies.

Vietnam has already established its credentials as a carbon market pioneer within the region. The country has issued more than 40 million carbon credits from over 150 projects under the Clean Development Mechanism (CDM), ranking it among the top four globally in CDM participation after China, India, and Brazil. Additionally, Vietnam has generated over 22 million voluntary carbon credits under internationally recognised standards such as Verra and Gold Standard. This experience has provided the country with a solid foundation in carbon finance, technical verification systems, and multilateral climate cooperation.

The government has outlined a phased rollout of the carbon market. Between 2025 and 2028, the platform will operate in pilot mode to test regulatory mechanisms, registry systems, and sectoral readiness. Full-scale domestic and international operations are planned for 2029, which will connect Vietnam’s market with global carbon pricing initiatives under the Paris Agreement’s Article 6. Supporting legislation includes Decree No. 06/2022, the revised Decree No. 119 (issued in June 2025), and a forthcoming decree on international carbon credit trading. The Ministry of Finance is also developing the framework for a national carbon exchange, while the Ministry of Natural Resources and Environment is tasked with managing credit registration, validation, and transparency.

The private sector will play a central role in the platform’s success. Firms that understand the mechanics of carbon trading—how credits are issued, validated, priced, and retired—will be best positioned to minimise compliance costs and even monetise sustainability investments. Participation in the carbon market may also become a prerequisite for export eligibility, particularly to carbon-regulated jurisdictions such as the EU, Japan, South Korea, and Canada. In this evolving landscape, businesses must not only keep pace with environmental regulation but also seize the economic opportunities embedded in Vietnam’s transition to a low-carbon economy.

This blog will provide a comprehensive breakdown of Vietnam’s carbon trading platform trial: the legal framework, implementation timeline, sector-specific impacts, business risks and opportunities, and strategic recommendations for stakeholders. Whether you are a domestic enterprise, foreign investor, sustainability consultant, or policymaker, understanding the intricacies of Vietnam’s carbon market is essential to navigating the next decade of regulatory and environmental change.

Vietnam’s Carbon Trading Platform: Strategic Trial Set for 2025

1. National Commitments and Institutional Vision

Key Policy Direction

• Vietnam is accelerating efforts to establish a carbon trading platform as part of its climate commitments under the Paris Agreement and COP26 pledges.
• At the Net Zero Vietnam Forum 2025, Dr. Nguyễn Tuấn Quang, Deputy Director General of the Department of Climate Change, affirmed the critical role of a domestic carbon market in:
  • Meeting international obligations
  • Unlocking green investment
  • Stimulating low-emission economic sectors

Governmental Urgency

• Quang emphasized that Vietnam must transition rapidly to a low-carbon economy or face both regulatory and trade penalties.
• A structured approach is now in place, anchored in both legislation and long-term environmental strategy.

2. Carbon Market Framework and Legal Structure

Policy Roadmap

• Vietnam’s carbon market strategy is built on five key pillars:
  • Energy transition
  • Efficient energy usage
  • Carbon capture and storage (CCS)
  • Ecosystem restoration
  • Market-based carbon pricing mechanisms

Legislative Foundations

• Key legal instruments supporting the carbon market include:
  • Decree No. 06/2022: Lays out environmental protection and carbon credit structures
  • Revised Decree No. 119 (June 2025): Updates the enforcement and scope of the domestic market
  • Decision 232/QĐ-TTg: Establishes the national carbon market development roadmap

3. Pilot Program (2025–2028) and Full Rollout Timeline

Trial Phase Objectives

• The pilot will operate from 2025 to 2028, aiming to:
  • Test trading mechanisms
  • Build legal and digital infrastructure
  • Prepare industries for full compliance
• A national registry system will support credit issuance, trade, and tracking.

Operational Launch (Post-2028)

• Full-scale implementation with international linkages is scheduled for 2029, aligning with:
  • Paris Agreement Articles 6.2 and 6.4
  • International carbon credit standards like Verra and Gold Standard

4. Carbon Credit Issuance and International Standing

• Vietnam ranks behind only China, Brazil, and India in Clean Development Mechanism (CDM) registrations.
• Most credits are generated from projects that meet international validation criteria.

5. National Carbon Exchange and Credit Trading System

Proposed Platform

• A national carbon exchange is under development, designed to:
  • Enable regulated domestic trading of carbon credits
  • Align with global frameworks and verification protocols
  • Ensure centralised tracking and full transparency

Oversight and Compliance

• The Ministry of Finance is leading technical design and policy drafting.
• Credits will be centrally registered, facilitating:
  • Market monitoring
  • Prevention of double-counting
  • Accurate emissions accounting

6. Sectoral Obligations and Trade Pressures

Domestic Compliance Requirements

• Key Vietnamese industries are already under regulatory pressure:
  • Aviation: Airlines must acquire 2.3 million credits within five months under CORSIA
  • Shipping: Must adhere to UN maritime decarbonisation frameworks

Exposure to International Carbon Regulations

• The EU Carbon Border Adjustment Mechanism (CBAM) poses a substantial cost threat:
  • Non-compliant exporters could face additional costs equivalent to 20–35% of product value
  • Access to affordable domestic offsets is critical to reduce these impacts

7. Industrial Pilot Emissions Trading Scheme (ETS)

• The government launched the ETS in June 2025, covering ~50% of national CO₂ emissions.
• Participants receive initial allowances and may use credits for up to 30% of compliance.

8. Challenges and Infrastructure Gaps

Key Obstacles

• Technical limitations:
  • Inadequate MRV (Measurement, Reporting, Verification) systems
  • Fragmented digital platforms
• Institutional capacity:
  • Shortage of certified verifiers
  • Limited readiness among local enterprises

Immediate Solutions

• Development of verifier accreditation programs
• Creation of sector-specific carbon handbooks
• Legal guidance on credit eligibility, transaction procedures, and reporting formats

9. Strategic Outlook and Policy Recommendations

• Accelerate regulation finalisation: Enact pending decrees to solidify legal certainty
• Invest in infrastructure: Build scalable MRV platforms and blockchain-enabled registries
• Enhance public-private partnerships: Engage industries early through training and co-financed pilot projects
• Pursue international compatibility: Design systems with interoperability in mind for future integration with EU, China, and Korea’s ETS
• Support small emitters: Create financial and technical support mechanisms for SMEs to participate in the carbon market

Conclusion

As Vietnam prepares to launch its carbon trading platform by the end of 2025, the trial phase marks more than just a regulatory milestone—it signals the beginning of a transformative economic and environmental shift. This initiative is not only a key mechanism to meet the country’s net-zero targets by 2050, but also a powerful instrument for reshaping how businesses operate, invest, and compete in an increasingly carbon-conscious global economy.

The carbon market is set to become a foundational tool for Vietnam’s climate governance. Through its structured credit issuance, transparent registry system, and phased implementation plan, the government aims to build a market that is aligned with international frameworks while being tailored to the unique needs of Vietnam’s industries. With core sectors like manufacturing, aviation, shipping, energy, cement, and steel under increasing pressure to decarbonise, the platform provides an actionable path toward emissions accountability, cost-effective compliance, and global trade alignment.

For businesses, this platform is not a future consideration—it is an imminent reality. The 2025–2028 trial phase offers companies an opportunity to engage early, test their readiness, and develop internal capacity before the market becomes fully operational in 2029. During this period, firms should prioritise:

• Conducting internal carbon audits to understand their emissions profiles
• Identifying eligible reduction projects that can generate tradable credits
• Establishing compliance teams to manage participation in the registry system
• Exploring partnerships for carbon offset development and joint mitigation ventures
• Investing in technologies that enhance energy efficiency and reduce scope 1 and scope 2 emissions

Failing to act now could have significant financial and competitive consequences. As regulatory pressure intensifies both domestically and abroad, companies that do not incorporate carbon risk into their strategies may face higher operating costs, diminished access to export markets, and a weakening of investor confidence. The European Union’s Carbon Border Adjustment Mechanism (CBAM), for example, will impose tariffs on emissions-intensive goods from countries without equivalent carbon pricing mechanisms, posing a clear threat to Vietnamese exporters who are unprepared.

On the other hand, proactive businesses stand to benefit from the first-mover advantage. Carbon trading offers a dual value proposition: environmental responsibility and economic opportunity. Companies that are able to generate high-quality credits can sell them to firms facing shortfalls, create new revenue streams, and strengthen their brand equity among environmentally conscious consumers and investors. Participation in carbon markets can also serve as a gateway to green finance instruments, including sustainability-linked loans, ESG investments, and climate bonds.

Vietnam’s government, in turn, must ensure that the carbon market is accessible, credible, and scalable. This includes finalising key legislation, building robust measurement, reporting and verification (MRV) systems, accrediting qualified third-party verifiers, and facilitating industry training. Transparency and international interoperability will be essential to attract global investors and ensure market integrity. Digitalisation, public-private collaboration, and capacity-building efforts will further enhance the platform’s effectiveness and legitimacy.

In conclusion, Vietnam’s carbon trading platform represents a major leap forward in the country’s environmental and economic policy landscape. It introduces new regulatory structures, financial mechanisms, and behavioural incentives that will redefine how value is created in the Vietnamese economy. For businesses, this is not just a compliance issue—it is a strategic imperative. Those that move early, invest wisely, and engage fully with the carbon market will be best positioned to thrive in the low-carbon future. As Vietnam steps into this new era of climate leadership, its business community must evolve in parallel, embracing sustainability as both a responsibility and a competitive edge.

This trial run is not the end goal—it is the beginning of a broader market transformation that will shape the trajectory of Vietnamese industry for decades to come. Now is the time for enterprises to integrate carbon consciousness into core business strategy and to view the carbon market not as a cost, but as a catalyst for innovation, efficiency, and long-term resilience.

People Also Ask

What is Vietnam’s carbon trading platform?

Vietnam’s carbon trading platform is a regulated marketplace where businesses can buy and sell carbon credits to offset their greenhouse gas emissions.

Why is Vietnam launching a carbon trading platform?

The platform supports Vietnam’s commitment to achieve net-zero emissions by 2050 and aligns with international climate agreements like the Paris Agreement.

When will the carbon trading platform trial begin?

The trial run of Vietnam’s carbon trading platform is scheduled to begin by the end of 2025.

How long will the trial phase of Vietnam’s carbon market last?

The trial phase will run from 2025 to 2028, with full-scale domestic and international operations expected from 2029.

Who is responsible for implementing the carbon trading platform in Vietnam?

The Ministry of Natural Resources and Environment, in coordination with the Ministry of Finance and other agencies, leads the platform’s development.

Which industries are impacted by the carbon trading platform?

High-emission sectors such as energy, manufacturing, aviation, cement, steel, and shipping will be most directly impacted.

What are carbon credits and how do they work?

Carbon credits represent one metric ton of CO₂ reduced or removed. Businesses can purchase them to offset their emissions and meet compliance targets.

How does carbon trading benefit businesses in Vietnam?

Businesses can reduce compliance costs, access global markets, improve sustainability credentials, and even earn revenue by selling surplus credits.

What legal framework supports Vietnam’s carbon market?

Key legal instruments include Decree No. 06/2022, the revised Decree No. 119 (2025), and Decision 232/QĐ-TTg on national carbon market development.

Will carbon trading be mandatory for all businesses?

Initially, it will target specific sectors, but broader participation may be mandated over time as regulations evolve.

How can businesses participate in Vietnam’s carbon trading platform?

Businesses must register, monitor emissions, and submit verified reports to access the platform and trade carbon credits.

What is the role of MRV in the carbon market?

MRV (Measurement, Reporting, and Verification) ensures accurate tracking of emissions and credit generation to maintain transparency and integrity.

What happens if a business fails to comply with carbon regulations?

Non-compliance may result in financial penalties, restricted market access, or higher carbon offset costs from international mechanisms.

How will Vietnam’s platform align with global carbon markets?

Vietnam’s platform will follow Article 6 of the Paris Agreement and integrate with standards like Verra and Gold Standard for international compatibility.

What is the EU Carbon Border Adjustment Mechanism (CBAM)?

CBAM is an EU policy that imposes tariffs on carbon-intensive imports from countries without equivalent carbon pricing, including Vietnam.

How can businesses prepare for CBAM-related risks?

By joining the carbon market, reducing emissions, and securing domestic carbon credits, companies can lower exposure to EU carbon tariffs.

Can Vietnamese businesses sell carbon credits internationally?

Yes, if credits meet international standards and are registered under accepted frameworks, they can be traded globally.

What are the financial implications of carbon trading for companies?

Costs include compliance, reporting, and credit purchases. However, credit sales, green financing, and improved ESG scores can offer returns.

What are the benefits of early participation in the carbon market?

Early movers gain competitive advantages through credit generation, regulatory familiarity, and enhanced sustainability branding.

How are carbon credits verified in Vietnam?

Third-party verifiers accredited by the government or international standards bodies certify emission reductions before credits are issued.

What are voluntary carbon credits?

Voluntary credits are purchased outside regulatory obligations, often for CSR or ESG purposes, and follow standards like Verra or Gold Standard.

Can SMEs participate in the carbon market?

Yes, small and medium-sized enterprises can engage in credit generation or offsetting, especially if they have low-carbon or renewable projects.

Will carbon trading affect product prices in Vietnam?

It may increase costs for high-emission goods, but efficiency gains and offset mechanisms can help mitigate price impacts over time.

Is digital infrastructure in place for the carbon platform?

The government is developing a centralised digital registry and exchange system to manage trading, reporting, and verification processes.

How are carbon credits priced in Vietnam?

Prices will be determined by supply and demand dynamics during the trial phase and influenced by global carbon credit benchmarks.

What role do international investors play in Vietnam’s carbon market?

Foreign investors can fund emission-reduction projects, purchase credits, or collaborate on low-carbon ventures under approved standards.

What support is available to help businesses adapt?

The government and international partners are offering training, handbooks, technical support, and legal guidance for market readiness.

What are the long-term goals of Vietnam’s carbon trading platform?

To build a fully functional, internationally linked carbon market that drives emissions reductions and supports sustainable economic growth.

How will the carbon market help Vietnam meet its climate targets?

By incentivising low-carbon practices, mobilising green finance, and enforcing accountability across industries to reduce emissions.

What strategic steps should businesses take now?

Conduct emissions audits, explore offset options, join pilot initiatives, and build internal capacity to engage with the carbon trading system.

Sources

vir.com.vn

reuters.com

en.nhandan.vn

netzero.vn

en.vietstock.vn

vietnam.vn

mae.gov.vn

World Bank

Ministry of Finance (Vietnam)

Ministry of Agriculture and Environment (Vietnam)