On March 25, 2025, the Ministry of Finance officially released and published the first draft for  the Decree on the national carbon trading exchange. Following Decision 232/QĐ-TTg on approval of the project to establish and develop a carbon market in Vietnam on January 24, 2025 , this marks a significant step in Vietnam’s efforts to reduce greenhouse gas (GHG) emissions and fulfill its international climate commitments. The Decree aims to encourage entities to reduce their emissions cost-effectively.

The draft Decree will establish a market allowing the trading of GHG emission units, including emission allowances and carbon credits. The scope of this Decree covers guidelines on trading activities, depository, and payment for GHG emission allowances and carbon credits on the national exchange.

Participants

Expected market participants include

• Enterprises listed in the GHG inventory according to Decision 13/2024/QD-TTg dated August 13, 2024, which are likely to be the primary trading entities.
• Entities holding carbon credits from emission reduction projects under domestic and international credit exchange and offset mechanisms will also participate.
• Other stakeholders involved in investing, trading emission allowances, and carbon credits,
• Commercial banks, which will facilitate payment transactions;
• Securities companies, proposed as intermediaries to support trading;
• Other relevant entities.

Commodities of the market

The commodities in this market will consist of GHG emission allowances and carbon credits. These commodities must be verified in the national registry system by the Ministry of Agriculture and Environment before being traded. The Decree also outlines the rights, obligations, and responsibilities of market participating entities, the Vietnam Securities Depository and Clearing Corporation (VSDC), commercial banks, and the Hanoi Stock Exchange. Additionally, it establishes principles for custody, deposit, withdrawal, and transfer of emission allowances and carbon credits.

Transaction principles

Carbon trading must ensure fairness, transparency, and the protection of the legitimate rights and interests of market-participating entities. Those involved in the market are required to thoroughly understand legal regulations and product information and assume full responsibility for their trading decisions. While the draft Decree lists prohibited activities, specific penalties for violations have not been detailed.

Validity of the document

The Decree is expected to take effect on June 1, 2025, with the pilot phase of carbon trading exchanges commencing at the same time until the end of 2028. After the pilot phase, from 2029 onwards, carbon exchanges are expected to be officially operational nationwide, preparing for integration with regional and global carbon markets.

National and international agencies, organizations, and individuals are invited to review and provide feedback here.