Japanese enterprises in Viet Nam comply with GHG inventory obligations

On March 6 in Ha Noi, the Ministry of Agriculture and Environment of Vietnam and the Ministry of the Environment of Japan co-organized a technical meeting on "Regulations under Decree No. 119/2025/ND-CP (amending and supplementing several articles of Decree No. 06/2022/ND-CP) on greenhouse gas emission mitigation and ozone layer protection."

The event was organized in coordination with the Overseas Environmental Cooperation Center, Japan (OECC), and the Viet Nam Energy and Environmental Consultancy Joint Stock Company (VNEEC).

Decree No. 06/2022/ND-CP on greenhouse gas (GHG) emission mitigation and ozone layer protection was issued to concretize provisions of the Law on Environmental Protection 2020. The document also laid the foundation for Viet Nam’s GHG emission management system, including GHG inventory, implementation of emission reduction measures, and gradual establishment of a domestic carbon market.

According to Mr. Le Ngoc Tuan, Deputy Director General of the Department of Climate Change, Decree No. 119/2025/ND-CP, which amends and supplements Decree No. 06/2022/ND-CP, improved the legal framework for GHG emission reduction and prepared for the operation of the carbon market in Viet Nam in the coming period.

The key focus is to perfect mechanisms for the allocation and management of GHG emission quotas and to complete the legal framework for the carbon market. The new decree also introduces provisions on the appraisal of GHG emission reduction results, while enhancing fairness, transparency, and alignment with international practices.

The meeting provided an opportunity for state management agencies and the business community to discuss more deeply technical regulations, particularly those with direct impacts on the production and business activities of Japanese enterprises investing and operating in Viet Nam.

Emphasizing the close cooperation between Viet Nam and Japan, Mr. Nomoto Takuya, Senior Negotiator at the Climate Change Negotiation Office under the International Strategy Division, Ministry of the Environment of Japan, stated that the two countries share a commitment to achieving net-zero emissions by 2050 and are making efforts to implement roadmaps for GHG emission reduction.

Viet Nam also participated in the Asia Zero Emission Community (AZEC) initiative launched by Japan. This initiative’s highlight is to enhance the capacity of businesses in the region to ensure transparency in GHG emissions throughout supply chains, thereby meeting global green standards.

Currently, enterprises with Japanese investment in Viet Nam are also required to comply with GHG emission inventory and reporting obligations and related requirements for developing emission reduction plans in accordance with Vietnamese law. With available methodical production processes, Japanese companies have expressed full support for fulfilling these obligations and will closely coordinate with Vietnamese management agencies.

According to the updated 2024 list of sectors and facilities required to conduct GHG inventories, a total of 157 Japanese enterprises must comply with regulations on reporting emission inventories and developing emission reduction plans. Among them, one steel production facility and one cement production facility are included in the group allocated pilot quotas for the 2025–2026 period.

According to Mr. Luong Quang Huy, Head of the Greenhouse Gas Emission Mitigation and Ozone Layer Protection Division under the Department of Climate Change, based on the feasibility of mitigation measures in line with guidance from the Ministry of Construction and the Ministry of Industry and Trade, enterprises will submit their periodic inventory reports for 2026 to provincial-level People’s Committees before March 31, 2027. Facilities included in the list eligible for quota allocation may participate in quota and carbon credit exchange. Facilities that implement appropriate GHG mitigation measures may also generate carbon credits and trade them on the market.

Facilities are also required to develop emission reduction plans for the 2026–2030 period, with annual updates if necessary. These plans will be based on the nature, scale of operations, capacity, existing technologies, and production and business plans of each facility, as well as inventory results and projected emissions during the planning period.

At the meeting, Vietnamese and Japanese experts provided information on opportunities and support resources for enterprises to implement emission reduction activities and sustainable investments, along with regulations and implementation guidance related to GHG inventory reporting, mitigation planning, and the technical and financial support mechanisms required.

Proactively accompanying the Vietnamese Government in implementing Decree No. 119/2025/ND-CP not only demonstrates the social responsibility of Japanese enterprises but also lays the groundwork for deeper cooperation in green technology and digital transformation in the future. This strong consensus and close coordination clearly reflect the comprehensive and sustainable strategic partnership between Viet Nam and Japan, aiming at the goal of net-zero emissions.