Vietnam Economic Times April, 27 2026

Dear readers,

President of the Republic of Korea (RoK) Lee Jae Myung paid a State visit to Vietnam from April 21-24. During their talks in Hanoi on April 22, Party General Secretary and State President To Lam and President Lee committed to facilitating trade, opening markets for each other’s goods, and supporting Vietnamese enterprises in integrating into South Korean production and supply chains and in the development of an independent and self-reliant economy, stressing the need to realize a strategic vision for economic connectivity in the evolving global context, including joint efforts to achieve bilateral trade turnover of $150 billion by 2030.

Vietnam is, meanwhile, accelerating overall efforts to achieve its net-zero emissions by 2050 target, with numerous guidelines, mechanisms, and policies focusing on reducing emissions from socio-economic activities, especially from production and business, while also developing a carbon market.

On June 9, 2025, the government issued a Decree amending and supplementing several articles of Decree No. 06 regulating greenhouse gas emission reductions, carbon market development, and ozone layer protection. Prior to that, the Prime Minister and the government issued Decisions and Decrees on establishing and developing a carbon market in Vietnam. The total greenhouse gas emission quota for the pilot period of 2025-2026 was also approved. Based on this, the Ministry of Agriculture and Environment issued a Decision allocating quotas for greenhouse gas emitting facilities for 2025 and 2026. Accordingly, 110 facilities in the fields of thermal power, steel production, and cement have been allocated such quotas.

Thus, the general legal framework for the carbon market in Vietnam is relatively complete for the market to begin operations.

The development of a carbon market aims to support the goal of reducing greenhouse gas emissions, contributing to the national greenhouse gas emission reduction target at low cost for businesses and society, promoting the application of low-emission technologies, and enhancing the competitiveness of Vietnamese enterprises, toward developing a low-carbon economy.

Vietnam is now moving toward operating a carbon market with two types of commodities to be traded: greenhouse gas emission quotas allocated to facilities (steel, cement, and thermal power) and carbon credits.

Under the roadmap outlined in Decision No. 232/QD-TTg from the Prime Minister, the domestic carbon exchange will be piloted from the end of 2025 to the end of 2028 and will officially begin operations from 2029.

In reality, however, many Vietnamese enterprises have been trading carbon credits from Vietnam via the global voluntary carbon market, through the Clean Development Mechanism (CDM), since 2006, the Gold Standard (GS) and Verified Carbon Standard (VCS) since 2008, and the Joint Crediting Mechanism (JCM) with Japan since 2013.

These have provided valuable experience for Vietnamese enterprises when participating in the domestic carbon market.

Enterprises play a key role in a successful carbon market, acting both as the main emitters and as the entities implementing emission reductions and trading carbon credits. They proactively reduce emissions, buy and sell credits to comply with regulations, invest in green technologies, enhance competitiveness, and create sustainable revenue from selling surplus credits.

The specific role of enterprises in the carbon market is reflected in many aspects. As entities required to comply with greenhouse gas emission quotas and implement greenhouse gas mitigation measures, they must participate in the carbon market. Buying, selling, and exchanging carbon credits and emission quotas on the market helps create financial resources for enterprises’ green projects, while also providing them with the conditions and opportunities to transition to low-emission technologies and energy-saving practices to reduce compliance costs and increase competitiveness. Additionally, by participating in the carbon market, enterprises fulfill their commitment to environmental protection, demonstrate social responsibility, and enhance brand positioning.

Our Cover Story in this edition therefore focuses on the prospects for Vietnam’s carbon market, with enterprises playing a key role as both main emitters and entities implementing emission reductions and trading carbon credits.

Warmest regards

Dr. CHU VAN LAM
CHAIRMAN OF THE EDITORIAL BOARD