Official launch of Carbon Trading Platform: [4] Businesses ready to join the market

According to Viet Nam Agriculture and Nature Newspaper, businesses expect the launch of the carbon exchange to provide not only a mechanism for trading emissions allowances and carbon credits but also a market-based price signal for carbon emissions, encouraging greater investment in emission reduction projects. The exchange is widely seen as a key step toward turning Viet Nam's Net-zero emissions target into a driver of green economic growth.

Nguyen Van Tuyen, Head of the Logistics Division at Posco Yamato Vina Steel Joint Stock Company: Optimizing export costs to markets with high carbon prices

As soon as the carbon exchange officially commenced operations, Posco Yamato Vina purchased more than 100 greenhouse gas emissions allowances, equivalent to over 100 tonnes of CO₂ equivalent (tCO₂e). The transaction was executed at USD 5.17 per emissions allowance.

In more mature carbon markets such as South Korea and Europe, allowance prices are significantly higher, typically ranging from EUR 10 to EUR 15 per tonne, while in Europe prices can reach EUR 20 or more. This creates opportunities for businesses to invest early in emissions reductions, generate carbon credits, or acquire competitively priced domestic allowances. I hope Viet Nam's carbon market will become increasingly dynamic and continue to grow.

As Posco Yamato Vina exports its products to Europe and many other international markets, complying with environmental certifications and technical requirements imposed by importing countries is essential for maintaining market access and competitiveness. The company has already obtained an Environmental Product Declaration (EPD), ISO 14064 certification for greenhouse gas inventory management, and certification related to the European Union's Carbon Border Adjustment Mechanism (CBAM).

Being allocated emissions allowances and having the ability to purchase allowances domestically enables us to demonstrate robust greenhouse gas accounting and conduct legitimate offset transactions within Viet Nam. This not only minimizes legal risks but also helps optimize export costs when serving markets with higher carbon prices.

Hoang Minh Tuan, Director of Song Lam Cement Joint Stock Company, a subsidiary of Vissai Cement Group: Enhancing competitiveness and creating new opportunities for partnerships in emissions reduction

With the launch of the carbon exchange, businesses can sell or trade emissions allowances they save through investments in emission reduction. This creates an additional revenue stream that can be reinvested into production and business operations.

The heavy industry sector is inherently subject to cyclical market fluctuations. For this reason, the carbon exchange represents a new opportunity for us to optimize production, improve energy efficiency, and generate new sources of green revenue. It also serves as an important stepping stone, allowing businesses to gain experience in Viet Nam's domestic carbon market before participating in international carbon markets.

Over the past two decades, Viet Nam's cement exports have expanded significantly, particularly in demanding markets such as Europe and the Americas. In the United States alone, demand has grown remarkably over the past six years. Participation in the carbon exchange demonstrates that a company meets the environmental standards and regulatory requirements set by Vietnamese authorities, thereby enhancing its credibility with international customers.

Moreover, many of our overseas customers that import and use our cement are themselves active participants in carbon markets in their home countries. Working together on emissions reduction initiatives will create new opportunities for deeper cooperation, ranging from technology exchange to carbon allowance trading.

Nguyen Tien Hai, Technical Director, Viet Nam Energy and Environment Consultancy Joint Stock Company (VNEEC): A direct bridge between buyers and sellers

The carbon exchange will serve as a direct marketplace connecting buyers and sellers, enabling businesses that receive emissions allowances to minimize the cost of complying with greenhouse gas emissions regulations.

Price is the key factor influencing investment decisions. It must reach a level sufficient to offset the costs of developing, validating, and registering carbon credit projects. Based on our assessments, emissions allowances are expected to be priced at around USD 5 per allowance during the initial phase. Carbon credits, meanwhile, are generally traded at slightly lower prices than emissions allowances in more mature international markets. We therefore expect domestic carbon credits to trade at around USD 1-2 per credit.

Actual prices will, of course, depend on a range of factors, including trading volume, the issuance period, and the type of project. For example, wind power and other renewable energy projects typically generate carbon credits more easily, resulting in relatively lower prices. By contrast, projects such as improved cookstove initiatives or other technically complex projects tend to command higher prices because of their greater development costs.

During the pilot phase of Viet Nam's carbon market, which will run through the end of 2028, the Government is allocating 100% of emissions allowances free of charge to regulated enterprises. I therefore expect the market's major pricing shift to occur on January 1, 2029, when the carbon market officially enters full operation.

At that point, the proportion of free allowances will gradually decline, and businesses will be required to purchase allowances through auctions. Demand for carbon credits to offset emissions exceeding allocated allowances is expected to rise significantly, driving both trading volumes and prices higher.

Nguyen Thuy Vi, Project Manager, Green Carbon Co., Ltd.: A positive signal for expanding carbon credit projects

The launch of Viet Nam's domestic carbon exchange sends a very positive signal to both domestic and international businesses and organizations developing carbon credit projects in the country. It provides greater confidence for investors to maintain and expand their projects, particularly in agriculture - a sector that accounts for a significant share of greenhouse gas emissions, especially from rice cultivation and other crop production.

Green Carbon is currently implementing a large-scale carbon credit project in Nghe An Province based on alternate wetting and drying (AWD) rice cultivation. The project follows the Gold Standard certification framework and has already completed the validation stage. In addition to targeting international carbon markets, we are also registering the project under the Viet Nam - Japan Joint Crediting Mechanism (JCM) with the aim of participating in the domestic market. As soon as Viet Nam's National Registry for Greenhouse Gas Emissions Allowances and Carbon Credits officially opens for carbon credit registration, we will immediately submit the project for registration.

However, one of the key challenges is the need for a clearer framework governing cross-border carbon credit transfers and benefit-sharing mechanisms. As Green Carbon operates in the agricultural sector, farmers' participation is essential to the success of these projects. A transparent mechanism for sharing revenue from carbon credit sales would give farmers greater confidence to participate while also ensuring that project developers receive the carbon credits generated through their investments.

With 15 agricultural carbon credit projects spanning the country, Green Carbon aims to register its projects not only under the Joint Crediting Mechanism (JCM) but also through international frameworks such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Article 6.2 mechanism under the Paris Agreement, thereby diversifying its portfolio of carbon credits.

We hope Viet Nam's domestic carbon market will continue to expand and become increasingly connected with international carbon markets. As more international companies participate in carbon trading, the Government should provide clearer regulations on the cross-border transfer of carbon credits, as well as the associated fees and procedures.

Once these regulations are clearly established, I believe Viet Nam's carbon market will have enormous potential - not only in agriculture but across many other sectors.