Stock trading accounts to be used for carbon market transactions

The information was released by the Ministry of Finance at a training workshop on disseminating policies and regulations for developing the domestic carbon market, held on April 13 in Hanoi.

The event is part of a technical assistance project, “Capacity building for the Ministry of Finance in studying models and preparing for pilot operation of a carbon credit exchange in Viet Nam,” funded by the United Nations Office for Project Services (UNOPS).

A carbon exchange is a platform for trading greenhouse gas emission allowances and carbon credits. Vu Thi Chau Quynh, Deputy Director General of the Legal Department at the Ministry of Finance, said the ministry has worked closely with the MAE and other relevant agencies to develop and finalize the legal framework and prepare necessary conditions for piloting the domestic carbon exchange. The aim is to ensure transactions are transparent, public and secure for all participants.

Regarding tradable assets, emission allowances have already been allocated to 110 major emitting facilities in sectors such as thermal power, steel and cement, with a total allocation exceeding 500 million tons for the 2025–2026 period. Companies that exceed their quotas must buy additional allowances, while those that cut emissions can trade excess allocations.

For carbon credits, enterprises and investors can develop emission reduction projects to generate credits for the market. Notably, Viet Nan allows companies to use carbon credits to offset up to 30% of emissions exceeding their allocated quotas. This differs from some international markets and is intended to provide flexibility for businesses during the early transition period.

“International experience shows that emission caps tend to tighten over time. This requires businesses to proactively adapt and invest in technological innovation from now,” Hung said.

The operational model is being built on the existing infrastructure of Viet Nam’s stock market.

Hung added that three types of carbon credits will be eligible for trading on the domestic market: credits under domestic offset mechanisms; bilateral or multilateral mechanisms under Article 6.2 of the Paris Agreement; and the mechanism under Article 6.4 of the Paris Agreement.

International credits such as those under Verra or Gold Standard that do not meet domestic eligibility conditions can still be traded on international markets under Decree No. 112/2026/ND-CP dated April 1, 2026. However, project developers must register their credits in the national registry system to support emissions management within Viet Nam.

Providing further details under Decree No. 29/2026/ND-CP dated January 19, 2026, Do Thanh Lam from the Ministry of Finance’s Legal Department said the exchange is designed to establish a transparent price discovery mechanism reflecting supply and demand. Its operations will leverage the existing infrastructure of the securities market.

The Hanoi Stock Exchange will organize trading, while the Viet Nam Securities Depository and Clearing Corporation will handle custody and settlement. Market participants will include companies trading emission allowances, enterprises, organizations and investors trading carbon credits, as well as intermediaries such as securities firms and settlement banks.

This approach is expected to maximize the use of existing technology systems, management experience and human resources, thereby reducing social costs and shortening implementation time. Applying stock market standards is also intended to enhance safety, security and reduce settlement risks. Lam emphasized that market manipulation, misinformation and exploitation of loopholes for profit are strictly prohibited and will be dealt with in accordance with regulations.

According to Nguyen Thi Thu Ha, Director of the Derivatives Market Department at the Hanoi Stock Exchange, enterprises and organizations must have a tax code and complete registration on the national registry system managed by the MAE to participate.

As the system leverages existing securities infrastructure, participants must hold an account with a securities company and are allowed to use only one such account. They must also have sufficient funds when placing buy orders and sufficient emission allowances or carbon credits when placing sell orders. Companies can use their existing securities accounts to participate, or open a new one if needed. Ha noted that the carbon market will be clearly separated from the securities market to ensure specialized and transparent management.

At the workshop, Dang Hong Hanh, Managing Director of VNEEC and head of the advisory team, presented a detailed roadmap for participating in Vietnam’s carbon market, focusing on challenges businesses may face when entering emissions trading systems and the critical role of operational governance mechanisms. In addition to the latest legal framework, the training also incorporated international perspectives, drawing lessons from market stabilization tools, monitoring mechanisms and risk management practices in leading carbon markets such as those in the European Union, the United Kingdom and China.

John Robert Cotton, Deputy Director of the Southeast Asia Energy Transition Partnership (ETP), praised the close coordination among the Ministry of Finance and other agencies in building the institutional framework and operational direction for the carbon exchange, reflecting Viet Nam’s strong commitment to achieving net-zero emissions. He added that practical exchanges with experts would help improve program effectiveness and support the sustainable development of the country's carbon market in the coming years.