On January 24, 2025, the Prime Minister of Vietnam issued Decision 232-TTG, officially approving the establishment and development of a carbon trading market. This milestone aligns Vietnam with global climate commitments and lays the foundation for a structured and regulated carbon trading system. 

 
Key Takeaways 
 
1. Vietnam’s Net-Zero Commitment 
The government is launching a carbon trading system to regulate greenhouse gas (GHG) emissions, reinforcing its net-zero by 2050 goal. 
 
2. A Phased Approach to Market Development 
• 2025-2028: Pilot phase with initial carbon credit exchange programs. 
• 2029 & Beyond: Full-scale implementation, including a national carbon credit exchange. 
 
3. A Robust Legal & Compliance Framework 
• Clear regulations for carbon credit issuance, trading, and verification. 
• Strict monitoring, reporting, and verification (MRV) systems with penalties for non-compliance. 
 
4. International Market Integration 
Vietnam aims to connect its carbon market globally, attracting foreign investment and facilitating cross-border carbon credit trading. 
 
5. Sectoral Impact: Who’s Affected 
• High-emission industries (energy, manufacturing, transportation) will be the first to participate. 
• Future expansions may include agriculture, forestry, and other sustainability-driven sectors. 
 
6. Incentives for Low-Carbon Projects & Green Investments 
• Financial incentives & tax benefits for businesses engaged in renewable energy, afforestation, and energy efficiency projects. 
• Encouraging private sector participation to accelerate Vietnam’s green economy. 
 
7. Capacity Building & Support 
• Government-led training, technical assistance, and policy guidance to help businesses navigate carbon trading regulations. 
• Collaboration between policymakers, financial institutions, and enterprises will be crucial for market success. 
 
What This Means for Businesses & Investors 
• Businesses—especially in high-emission sectors—must prepare for compliance with carbon trading mechanisms. Early adopters of low-carbon strategies will gain competitive advantages, financial incentives, and stronger ESG credibility. 
• Investors & financial institutions can tap into green finance opportunities, using carbon credit trading as a new revenue stream and risk management tool. 
• Vietnam’s carbon market will not only strengthen its sustainability leadership but also enhance economic competitiveness, attracting foreign investments and fostering international carbon credit exchanges. 
 

How an emission trading system works?  

Let’s say two companies, Company A and Company B, are only allowed to emit 300 tons of carbon. 

However, Company A is on track to emit 400 tons of carbon this year, while Company B will only be emitting 200 tons. 

To avoid a penalty comprised of fines and extra taxes, Company A can make up for emitting 100 extra tons of CO2e by purchasing credits from Company B, which has extra emissions room to spare due to producing 100 tons less carbon this year than they were allowed to. 

Time to Act!  

• Assess your carbon footprint. 
• Stay ahead of regulations. 
• Explore investment opportunities in Vietnam’s emerging carbon market. 

Vietnam’s green transformation is happening now—how will your business seize the opportunity? 

VCI Legal’s Technology & Renewable Energy Practice 

At VCI Legal, our Technology & Renewable Energy practice is dedicated to helping businesses navigate legal complexities in Vietnam’s fast-evolving tech and energy sectors. We provide strategic legal counsel to investors, corporations, and startups looking to capitalize on sustainable energy initiatives, carbon markets, and emerging technologies. 

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