VIFC
Emerging Market

Vietnam Carbon Credits Market

Vietnam is building its Emissions Trading Scheme (ETS) and carbon credit exchange, targeting 50% of national CO₂ emissions. The pilot launched June 2025 with full market operations expected by 2029.

Jun 2025
ETS Pilot Launch
Decision 232/QĐ-TTg
Late 2026
Exchange Pilot
Originally planned 2025
50%
Covered Emissions
Of national CO₂
2028
Free Allowances Until
Auctions from 2029
30%
Offset Limit
Of total emissions
3
Target Sectors
Power, steel, cement

Implementation Roadmap

2025 (H1)

Pilot ETS launch

Mandatory MRV (monitoring, reporting, verification) for covered entities. First batch of free allowances allocated for 2025–2026 emissions.

2025 (H2)

Allowance distribution

Companies receive free emission allowances based on historical emissions and benchmarks. No auctioning yet.

2026

Carbon exchange pilot

HNX-operated carbon credit exchange begins trial trading. Domestic credits and international credits (CDM, JCM, Article 6) eligible.

2027

Expansion

Additional sectors may be added (chemicals, paper, textile). Tightening of free allocation caps.

2028

Review & transition

Assessment of pilot phase. Preparation for full market with auction-based allocation.

2029+

Full ETS launch

Permit auctions begin. Price-based carbon signal emerges. Potential linkage with regional carbon markets (ASEAN, Article 6).

Covered Sectors (Pilot Phase)

Power Generation
Emissions: ~150 Mt CO₂/year
Entities: ~50 facilities

Thermal power plants > 25MW

Opportunity: Renewable energy certificates (RECs), coal-to-gas switching, solar/wind project credits

Steel
Emissions: ~35 Mt CO₂/year
Entities: ~20 facilities

Blast furnace operations

Opportunity: Electric arc furnace conversion, energy efficiency credits, scrap-based steelmaking

Cement
Emissions: ~50 Mt CO₂/year
Entities: ~40 facilities

Clinker production facilities

Opportunity: Alternative fuels, clinker substitution, carbon capture pilot projects

Eligible Carbon Credit Types

Domestic Voluntary Credits
Eligible

Credits generated from Vietnamese emissions reduction projects (renewable energy, forestry, waste management). Must be registered and verified under national standards.

Vietnam Carbon Registry
Clean Development Mechanism (CDM)
Eligible

UN-issued CERs from Vietnamese CDM projects. Vietnam has 260+ registered CDM projects — one of the highest in ASEAN.

UNFCCC CDM Registry
Joint Credit Mechanism (JCM)
Eligible

Bilateral Japan-Vietnam mechanism for technology transfer and emissions reductions. Japan funds low-carbon tech, both countries share credits.

JCM Registry (Japan-Vietnam)
Article 6 Credits (Paris Agreement)
Eligible

International carbon credits under Article 6.2 (bilateral) and 6.4 (centralized) of the Paris Agreement. Vietnam signed Article 6.2 agreements with Japan, South Korea, Switzerland.

Paris Agreement Art. 6
REDD+ Credits (Forestry)
Eligible

Vietnam received $51.5M from World Bank's FCPF for reducing deforestation in North Central region (2018-2024). 10.3M tons CO₂ verified.

World Bank FCPF / ERPA
Verra / Gold Standard (International)
Under Review

Voluntary carbon credits from international registries. Eligibility for Vietnam's domestic offset mechanism still under review.

Under review

Investment Opportunities

Carbon Credit Project Development
High

Develop verified emissions reduction projects (solar, wind, biogas, forestry) and sell credits on the exchange. Early movers can establish inventory before demand increases in 2029.

Carbon Trading & Brokerage
Medium-High

License as a carbon credit broker or trading firm on the HNX exchange. Requires financial services expertise and SSC/MOF approval.

MRV Technology & Consulting
High

Monitoring, Reporting, and Verification services for covered entities. IoT-based emissions monitoring, digital MRV platforms, third-party verification.

Carbon Finance & Insurance
Medium

Carbon credit-backed financing, carbon price hedging instruments, delivery risk insurance for forward carbon contracts.

Forestry & REDD+ Credits
High

Vietnam has 14.7M hectares of forest (47% coverage). REDD+ credits from avoided deforestation and reforestation are high-quality and internationally recognized.

Green Bond Issuance
Medium-High

Issue green bonds linked to carbon reduction projects. VIFC Da Nang is positioned to facilitate international green bond listings.