Vietnam took a major leap forward in its clean energy transition journey on June 29, 2026, with the official launch of its domestic carbon trade exchange. Hosted at the Hanoi Stock Exchange (HNX), this new platform establishes a transparent, credible, and highly effective carbon pricing mechanism designed to reshape the nation’s economic and environmental landscape. Proving its immediate operational readiness, the exchange recorded its very first greenhouse gas allowance transaction at VND 136,000 per tonne of CO2e.
Former Deputy Prime Minister Tran Hong Ha attended the ceremony alongside representatives from government agencies, financial institutions, development partners, and the private sector. The launch caps years of policy development, legal reform, and technical preparation; efforts which saw consistent contributions by the Southeast Asia Energy Transition Partnership (ETP).
This launch is a reflection of the Government of Viet Nam’s commitment to achieving net-zero emissions by 2050, accelerating greenhouse gas mitigation, and unlocking vital investments for sustainable, low-carbon development.
Behind the scenes: supporting Viet Nam’s carbon market journey
ETP’s engagement with Vietnam’s carbon market began in June 2022, when ETP, a programme of the United Nations Office for Project Services (UNOPS) signed a Memorandum of Understanding (MOU) with the Department of Climate Change (DCC) under the Ministry of Natural Resources and Environment (MONRE). The culmination of several months of strategic dialogue, this MOU established a cooperation framework covering carbon market development, international market linkages, and climate capacity building, creating the institutional foundation for all subsequent technical assistance.
With carbon market development prioritized under the agreement, ETP has since collaborated with national government counterparts across five distinct technical assistance projects over the past four years. These initiatives span enterprise readiness, exchange design, impact assessment, legal analysis, and international market integration. This technical assistance has been successfully delivered in partnership with national and international experts and consulting firms, including VNEEC and GreenCIC.
Five Technical Assistance (TA) Projects
TA 1 – ETS Piloting and Simulation in Vietnam (2023–2025)
ETP supported the delivery of six ETS training courses in Hanoi and Ho Chi Minh City between July 2023 and March 2025, reaching over 650 participants from industry, regulatory agencies, financial institutions, and research bodies. Industrial emitters made up 59% of participants. Courses combined expert-led sessions with hands-on CarbonSim simulation exercises adapted to Vietnam’s regulatory context, covering ETS principles and operation, compliance strategies, GHG inventory preparation, MRV requirements, and carbon market participation.
TA 2 – Assessment of Country Readiness and Design for the CTX (Phase 1, completed early 2024)
ETP supported an assessment of Vietnam’s institutional readiness for a carbon trading exchange and the options for structuring it. The key recommendation was that Vietnam build on existing infrastructure and institutional capacity rather than starting from scratch. This fed into the subsequent decision to operate the carbon trading platform through HNX’s existing securities infrastructure, which reduced setup time and cost.
TA 3 – Carbon Impact Assessment of Vietnam’s ETS (September 2024 to September 2025)
With the broad market structure in place, ETP supported technical analysis focused on the pilot phase design. This covered three areas: identifying priority sectors for ETS coverage based on emission intensity and trade exposure, which led to the recommendation to include thermal power, steel, and cement; evaluating allowance allocation options suited to Vietnam’s industrial context; and estimating the macro-economic and sector-level impacts of different ETS governance scenarios. The findings contributed to the evidence base for Decree 119/2025/ND-CP on amended GHG governance and Prime Minister’s Decision 263/QD-TTg, which approved the pilot allowance budget of 511 million tonnes CO2e for 2025-2026.
TA 4 – Vietnam Carbon Trade Exchange: Pilot Preparation with the Ministry of Finance (CTX Phase 2, ongoing)
Building on the assessment from Phase 1, ETP supported analytical and technical work for the Ministry of Finance (MOF) covering the 2025-2028 pilot phase. This included analysis and recommendations on the operational model for the carbon market exchange, as well as an impact assessment of the proposed pilot framework to inform policy decisions. These outputs contributed to Decree 29/2026/ND-CP on the Domestic Carbon Market Exchange and to the design of the registry, clearing, and settlement architecture connecting HNX, VSDC, DCC/MAE, and BIDV.
TA 5 – Paris Agreement Article 6 Operationalisation and Carbon Credit Offsetting Standards (ongoing)
ETP has supported the development of the regulatory framework for international carbon credit transactions under Article 6 of the Paris Agreement, and the national framework for domestic carbon offset credits. Recommendations drew on financial modelling and a review of 12 country experiences, and contributed to Decree 112/2026/ND-CP on international transfer of greenhouse gas mitigation outcomes and carbon credits, issued in January 2026.
Why This Matters for Vietnam’s Businesses and Future
The establishment of this exchange is more than a regulatory win; it is an economic catalyst. By placing a tangible value on carbon, the market creates a financial incentive for enterprises to reduce their emissions, invest in cleaner technologies, and optimize their energy efficiency.
As global markets increasingly demand and reward low-carbon supply chains, this exchange will actively shield and improve the competitiveness of Vietnamese businesses on the world stage.
Looking Ahead
With the pilot phase running until the end of 2028 and full market operation slated for 2029, significant work lies ahead. Incoming priorities include building the framework for domestic carbon credit issuance, refining MRV systems, and developing Article 6 international linkages to connect Vietnam’s market to external partners.
The launch of the exchange is a milestone achievement, but the real momentum builds now. Moving forward, ETP will continue to champion this initiative, specifically targeting the carbon credit and Article 6 components. Our focus will center on building robust institutional capacity, driving market readiness, and ensuring the exchange operates with absolute transparency and efficiency.
Together, we are securing a sustainable, competitive, and low-carbon future for Vietnam.
