Vietnam's carbon market is entering its operational phase as the first 110 businesses officially participate in the pilot program for greenhouse gas emission trading.
This is considered a significant milestone in the roadmap to achieving net-zero emissions by 2050, while also opening up a new playing field for the business community in the process of transitioning to a green economy.
Completing the legal framework, preparing for a carbon exchange.
The promulgation of fundamental legal documents has laid the groundwork for the formation and operation of a domestic carbon market. In particular, the Decree on the carbon exchange and the decision on the allocation of greenhouse gas emission quotas are considered the "key" to paving the way for a formal trading mechanism.
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According to the current allocation, 110 facilities in three major emission sectors – thermal power, iron and steel, and cement – have been granted emission quotas for the 2025-2026 period. This is the first group of businesses allowed to participate in trading on the domestic carbon exchange.
The operating mechanism is designed according to market principles:
- Businesses that emit less than their allocated quota can sell the surplus.
- Businesses that exceed emission limits must purchase additional quotas or use carbon credits to offset the excess emissions.
- The offsetting amount using carbon credits shall not exceed 30% of the allocated quota.
All transactions will be conducted on the carbon exchange located at the Hanoi Stock Exchange, utilizing the existing securities trading system's technical infrastructure. Simultaneously, the National Registration System will manage all carbon quotas and credits as a form of digital asset for businesses.
These steps indicate that Vietnam is moving from the policy-making phase to the actual operational phase of its carbon market.
Businesses enter a new playing field: Opportunities go hand in hand with challenges.
Participating in the carbon market is not only an obligation to comply with environmental regulations but also opens up opportunities to restructure production models towards greater efficiency and sustainability.
Experts believe that the greatest benefit of early participation lies not in the quota trading activity, but in the potential for a shift in management mindset. Carbon is no longer simply an environmental factor, but has become an economic asset. With good management, businesses can generate revenue from surplus quotas or carbon credits.
However, the reality is that many businesses are still approaching the carbon market passively, mainly viewing it as an administrative obligation rather than a development opportunity. This can cause businesses to lose their competitive advantage in the context of increasing greenhouse gas emission barriers globally.
One of the biggest challenges today is the inventory of greenhouse gases – the foundation for determining quotas and compliance obligations. If the data is inaccurate, businesses can suffer losses right from the quota allocation stage and face disadvantages when participating in transactions.
In addition, limitations in specialized human resources and internal management systems are also significant bottlenecks. Many businesses have not yet established a comprehensive monitoring system, leading to fragmented policy implementation and adoption.
The Vietnamese carbon market is expected to officially become operational in the second quarter of 2026. From now until then, training, guidance, and capacity building activities for businesses are considered essential preparations to ensure a smooth transition.
In the long term, the carbon market is not only a tool for controlling emissions but also a driver for technological innovation, improving resource efficiency, and enhancing the competitiveness of businesses.
For Vietnam, this is not only an environmental economic mechanism, but also a measure of its ability to transition to a green growth model where economic development is linked to environmental protection and sustainable development.