Viet Nam to launch a carbon trading platform

Legal framework ready

At the conference “Implementing the legal framework and operational guidelines for the carbon trading platform in Viet Nam” recently held, Bui Hoang Hai, Vice Chairman of the State Securities Commission of Viet Nam, said that Viet Nam has established an important legal foundation, marking the transition from institutional development to the actual operation of the domestic carbon market. This is considered a significant step on the roadmap toward building a green economy, as market-based instruments are increasingly applied to regulate emissions more effectively.

At the beginning of 2026, the Government issued Decree No. 29/2026/ND-CP on the domestic carbon trading platform, comprehensively regulating activities such as registration, issuance of codes, transfer of ownership, custody, trading and settlement of emission quotas and carbon credits. Subsequently, on February 9, 2026, Deputy Prime MinisterTran Hong Ha signed Decision No. 263/QD-TTg approving the total pilot greenhouse gas emission quotas for the 2025–2026 period. Clearly defining market commodities, including emission quotas and carbon credits, helps businesses better understand their obligations and the associated financial benefits. This also provides enterprises with a basis for developing appropriate emission-reduction strategies aligned with their long-term production and business plans.

Emission quotas and carbon credits from emission reduction projects will be traded on the exchange.

In essence, the carbon trading platform is expected to create a new economic driver. Instead of viewing emission reduction as a mandatory cost, businesses can now see it as a business opportunity. Those leading in technological transformation and process optimization to reduce emissions will have surplus quotas to sell, thereby recovering investments in green technologies. Conversely, this mechanism forces high-emission enterprises to consider whether to pay for emission rights or transform themselves to survive in a low-carbon economy. This market mechanism is expected to promote technological innovation, improve energy efficiency and gradually reduce dependence on high-emission sources.

According to Do Thanh Lam from the Legal Department of the Ministry of Finance, the carbon market operation model is built on the existing stock market infrastructure. Accordingly, the Hanoi Stock Exchange provides trading services, the Viet Nam Securities Depository and Clearing Corporation handles custody and settlement, and securities companies and payment banks act as intermediaries. This approach is considered to effectively utilize infrastructure, enhance safety and reduce implementation costs. At the same time, leveraging existing systems also shortens the time needed to bring the market into actual operation.

Tight governance, enhanced transparency

The current legal framework sets out core operating principles, including fairness, openness, transparency, and the protection of participants' legitimate rights and interests. The application of stock market operating standards is expected to improve safety, security and minimize settlement risks. Acts of market manipulation, providing false information or exploiting loopholes for profit are strictly prohibited and will be handled in accordance with regulations.

Regarding the management mechanism, Mr. Lam said responsibilities are clearly assigned among agencies. In particular, the Ministry of Agriculture and Environment manages commodities, including emission quotas and carbon credits; the Ministry of Finance guides and supervises trading activities; and the State Securities Commission of Viet Nam directly inspects and supervises the operation of the exchange and service providers.

According to the roadmap, the carbon market will be piloted until the end of 2028. During this period, operating units such as the Viet Nam Securities Depository and Clearing Corporation, the Viet Nam Exchange and the Hanoi Stock Exchange will not charge service fees. This policy aims to encourage enterprises to participate in the market, create initial liquidity and promote adaptation to the new trading mechanism.

Sharing experience in designing and managing emission trading systems, international experts from the International Finance Corporation and Bursa Malaysia emphasized that an effective carbon market must be built on a solid legal foundation. Core elements of system governance include ensuring transparency, accountability, market supervision mechanisms, and measurement, reporting and verification (MRV) systems. If governance is ineffective, the market may face risks of fraud, price volatility and declining investor confidence.

International experience also shows that in the early stages, strict control of participants, combined with the role of financial intermediaries, is necessary to balance liquidity and market stability. At the same time, full and transparent disclosure of information is a key factor in attracting investors and businesses.

According to Mr. Bui Hoang Hai, in the coming time, along with disseminating legal regulations, the State Securities Commission and relevant agencies will focus on providing detailed operational guidance for market participants, including procedures for trading, registration, custody, transfer of ownership and settlement of emission quotas. These measures aim to ensure fair and transparent market operation and limit risks, especially in the early stage when liquidity remains a major challenge.