Viet Nam’s national carbon market is moving from blueprint to reality. The Southeast Asia Energy Transition Partnership (ETP) and the Viet Nam Ministry of Finance (MOF) recently co-hosted a final workshop to conclude ETP’s long-serving technical assistance project for Viet Nam’s Carbon Trade Exchange (CTX).
While the workshop provided an overview of the project, including summaries from critical research, it also reflected ETP’s continuous work in supporting the MOF to build a transparent and effective carbon market for Viet Nam. With the pilot phase set for 2026–2028, Viet Nam is aligning the key economic tool with its environmental ambitions under the 2020 Environmental Protection Law.
A Strong Legal Foundation
Ms. Vu Thi Chau Quynh, Deputy Director of the MOF’s Legal Department, highlighted that the research conducted over the last two years has been instrumental in shaping national policy. Specifically, the newly minted Decree No. 29/2026/ND-CP which now serves as the bedrock for the domestic exchange.
What does this new framework cover?
- Registration & Custody: Clear rules for issuing codes and managing greenhouse gas (GHG) emission quotas.
- Trading & Settlement: Establishing how ownership is transferred and how payments are processed.
- National Registry: Circular No. 11/2026/TT-BNNMT provides the “how-to” for account management and credit transfers.
“The research results have become an important reference source in developing the Carbon Market Development Plan… as well as Decree No. 29/2026/ND-CP,” shared Ms. Quynh.
Leveraging Existing Infrastructure
One of Viet Nam’s strategic advantages is its decision to build the carbon market upon existing financial infrastructure. Professor Michael Mehling of Center for Energy and Environmental Policy Research at the Massachusetts Institute of Technology (CEEPR) noted that utilizing the stock market’s current framework is a smart move that puts Viet Nam on the right track. Professor Zhang Xiliang of Tsinghua University, one of the key experts behind China Emissions Trading System, complemented this with comparative insights from China’s own experiences.
However, the transition isn’t without its hurdles. To move from a “pilot” to a “powerhouse,” experts identified three key areas for improvement:
| Focus Area | Key Recommendations |
| Legal Clarity | Clearly define the legal nature of carbon credits in civil and tax law so businesses can use them as collateral or for tax accounting. |
| Governance | Establish a Carbon Market Coordination Board to ensure the MOF and the Ministry of Agriculture and Environment (MAE) work in lockstep. |
| Technical Integration | Ensure real-time data sync between the National Registration System, the Hanoi Stock Exchange (HNX), and the VSDC. |
The Road to 2028: Liquidity and Regulation
The 2026-2028 pilot phase is set to be a learning period. Currently, most quotas are allocated for free, which can lead to low market liquidity. To counter this, experts suggest:
- Price Controls: Implementing tools to manage price fluctuations.
- Quota Auctions: Gradually moving toward auctions to create a genuine, market-driven price signal for carbon.
3. Capacity Building: Strengthening the expertise of market participants, from commercial banks to sector associations.
Final Thoughts
Through the ETP’s technical expertise and the MOF’s leadership, Viet Nam is building a sophisticated market mechanism to meet its Nationally Determined Contributions (NDCs) and accelerate its transition to clean energy. By refining its legal framework and technical infrastructure today, Viet Nam is ensuring that its “green” economy is backed by “gold” standard transparency.
The workshop brought together participants from VNEEC, the State Securities Commission (SSC), the Viet Nam Securities Depository and Clearing Corporation (VSDC), and various commercial banks and securities companies.
