According to the Department of Climate Change (Ministry of Natural Resources and Environment), Viet Nam will begin allocating quotas and piloting its Emissions Trading System (ETS) starting June 2025.
The Ministry of Natural Resources and Environment will oversee the organization and management of activities such as quota trading, recovery, surrendering, and borrowing.
During the pilot phase, approximately 150 enterprises identified as significant emitters in industries such as iron and steel production, cement, and thermal power will receive free emission quotas and participate in Viet Nam ’s carbon market. These quotas will be allocated entirely free of charge during the pilot phase. The maximum proportion of carbon credits that can be used to offset quotas is set at 20%.
Domestic carbon credit trading and offsetting will be based on three mechanisms: International carbon credit exchange and offsetting mechanisms under agreements or treaties between the Viet Nam ese government and foreign counterparts; Mechanisms under the United Nations Framework Convention on Climate Change (UNFCCC), as well as contracts and treaties to which Viet Nam is a party; Other international carbon credit exchange and offsetting mechanisms.
Following the pilot implementation, Viet Nam officially plans to operate its carbon market starting in 2028. The country also aims to connect its domestic market with international and regional markets after 2030.
In collaboration with development partners, the Institute of Strategy and Policy on Natural Resources and Environment is organizing training courses simulating climate policies and greenhouse gas (GHG) reduction strategies. These courses are designed to assist enterprises, particularly steel, cement, and thermal power facilities listed among the 2,166 major emitting establishments under Decision No. 13/2024/QD-TTg by the Prime Minister, in conducting GHG inventories and preparing to participate in the carbon market as Viet Nam transitions toward a low-carbon economy.
Through these initiatives, enterprises will gain insights into the roles of intermediary organizations such as banks and regulatory bodies, as well as the trading methods in the carbon credit market at the Hanoi Stock Exchange. This is an opportunity for businesses to proactively adapt to new policies, develop sustainable strategies, and enhance their competitiveness in the global movement toward emission reduction initiatives.