Việt Nam has formally established the legal and institutional framework for its domestic carbon market, integrating carbon credit and greenhouse gas emissions quota trading into the country’s securities infrastructure ahead of pilot operations.
On 19 January, the Government issued Decree 29/2026/NĐ-CP, setting out the regulatory architecture for a national carbon trading exchange. The decree details how greenhouse gas emission quotas and carbon credits will be registered, transferred, custodied and traded, marking a transition from policy design to implementation under Việt Nam’s broader climate strategy.
Under the framework, regulated entities will trade both emission quotas and carbon credits through securities accounts held with licensed brokerage firms. Participants are required to open a dedicated carbon trading account, separate from other financial trading accounts, which will be used exclusively for carbon market transactions. The system mirrors the accounting, settlement and disclosure mechanisms used on Việt Nam’s stock exchanges.
Trading results will be published at the end of each trading day by the Hanoi Stock Exchange, while clearing and custodial functions will be supported by the Vietnam Securities Depository and Clearing Corporation.
Decree 29 specifies that carbon trading will be ring-fenced from other securities activities. Transactions must settle in real time, without central counterparty clearing, and can only proceed if participants hold sufficient emission quotas or carbon credits, alongside adequate funds in their accounts.
By anchoring carbon trading within existing, regulated financial infrastructure, the Government aims to enhance transparency, reduce operational risk and leverage technological capabilities already embedded in the securities sector. Brokerage firms are required to display carbon trading components separately on their platforms and maintain distinct records for carbon assets and associated funds.
Before any emission quota or carbon credit can be traded, it must be registered with the national registry managed by the Ministry of Agriculture and Environment and assigned a unique identification code. This identifier will serve as the basis for custody and trading and will be shared with the HNX and VSDC upon registration.
The carbon trading exchange will operate under a pilot regime until 31 December 2028, during which no exchange service fees will be charged. From 1 January 2029, fees will be introduced in line with applicable regulations. The pilot phase is intended to allow market participants to familiarise themselves with account structures, trading protocols and settlement processes distinct from conventional securities markets.
The move forms part of Việt Nam’s roadmap towards a fully functioning nationwide carbon market, with potential for future alignment with international mechanisms. As of August 2025, more than 30 million carbon credits from 158 voluntary market projects had been issued under the national registry, with projections indicating this could rise to around 70 million by 2030. Domestic demand is also increasing, particularly from sectors such as aviation, which require significant volumes of credits to offset emissions.
Officials say integrating carbon trading into securities infrastructure underscores Việt Nam’s commitment to developing a credible, transparent and scalable carbon market that supports emissions reductions while maintaining robust regulatory oversight.
