Viet Nam's legal framework for a domestic carbon market has been extended by two decrees: Decree No. 119/2025/ND-CP of 9 June 2025, amending Decree No. 06/2022/ND-CP on greenhouse gas emission mitigation and ozone layer protection, and Decree No. 29/2026/ND-CP of 19 January 2026 on the domestic carbon exchange.
Emission allowances (Decree 119/2025/ND-CP)
- One allowance unit equals one tonne of CO₂ or CO₂ equivalent.
- Allocation follows three periods: 2025–2026, 2027–2028 and 2029–2030.
- For 2025–2026, allowances are allocated to thermal power plants, iron and steel plants and cement plants on the Prime Minister's list of facilities required to conduct greenhouse gas inventories.
- Facilities may use eligible carbon credits to offset part of the allowances they surrender; unused allowances may be carried over to later periods until the end of 2030.
- Facility greenhouse gas inventory reports must be independently verified.
Carbon exchange (Decree 29/2026/ND-CP)
- The decree governs registration, code assignment, ownership transfer, custody, trading and settlement of greenhouse gas emission allowances and carbon credits.
- Allowances and credits must be registered in the national registry managed by the Ministry of Agriculture and Environment before custody and trading.
- The Vietnam Securities Depository and Clearing Corporation handles custody and settlement; the Hanoi Stock Exchange operates the trading system.
- The pilot phase runs until 31 December 2028.
Relevance to project advisory work
For facilities on the inventory list, emission data, mitigation plans and independent verification are now linked directly to allowance obligations. For new projects, estimating greenhouse gas emissions at the feasibility stage helps investors anticipate these obligations. Similar requirements appear in financiers' frameworks, such as ADB's ESS9 and JICA's Guidelines for Environmental and Social Considerations.