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As of now, "carbon credits" have been regulated in Vietnam's legal system. The main legal documents governing carbon credits include the Environmental Protection Law 2020, Decree 06/2022/ND-CP, and Decree 119/2025/ND-CP, effective from August 1, 2025, which amends and supplements Decree 06/2022/ND-CP. Additionally, on January 24, 2025, the Prime Minister issued Decision No. 232/QD-TTg approving the scheme for establishing and developing the carbon market in Vietnam.

Accordingly, the goal of developing a carbon market in Vietnam is to contribute to greenhouse gas emission reduction, promote green transition, enhance the competitiveness of Vietnamese enterprises domestically and in the global market, develop a low-carbon economy, and proactively respond to climate change, aiming to achieve net zero emissions by 2050.

Goods in the carbon market consist of 02 types: Greenhouse gas emission quotas and Carbon credits. Greenhouse gas emission quota is the amount of greenhouse gas that an organization is allowed to emit within a specified period, calculated in tons of carbon dioxide (CO2) or tons of “carbon dioxide (CO2) equivalent” . Carbon credit is a tradable certificate representing the right to emit one ton of carbon dioxide (CO2) or one ton of carbon dioxide (CO2) equivalent.

To operate the carbon market, Vietnamese law provides for: (i) a national registration system for GHG quotas and carbon credits, and (ii) a carbon exchange.

The Hanoi Stock Exchange is the unit responsible for building and providing carbon exchange services. The Ministry of Agriculture and Environment confirms and issues codes for greenhouse gas emission quotas and carbon credits traded on the exchange. Entities participating in transactions must have a trading depository account. The Vietnam Securities Depository provides depository and transaction settlement services.

The Government has set a pilot roadmap for the carbon market from June 2025 until the end of 2028. From 2029, the carbon market will officially operate.

Currently, the specific legal framework guiding the operation of the carbon exchange is still under development and completion. However, businesses should proactively update new legal regulations, especially Decree 119/2025/ND-CP effective from August 1, 2025, and proactively build and implement emission reduction plans to optimize the use of quotas and even generate carbon credits for trading, bringing economic benefits. Proactive preparation by businesses not only helps them comply with the law but also forms an important part of their overall ESG strategy, helping to mitigate risks and seize opportunities in the green economy.