Strengthening enterprise capacity for carbon market

On April 15, in Da Nang City, the Department of Climate Change (DCC) under the Ministry of Agriculture and Environment, in coordination with the United Nations Development Programme (UNDP), organized a workshop titled "Strengthening capacity for participation in Viet Nam's carbon market." The event is part of training workshops for enterprises held in Ho Chi Minh City, Da Nang, and Ha Noi throughout April 2026.

Participants included representatives from local departments and agencies of Da Nang City, Quang Tri, Khanh Hoa, Gia Lai, Ha Tinh, and Nghe An; enterprises in thermal power, cement, and steel sectors subject to greenhouse gas (GHG) emission quota allocation in the Central and Central Highlands regions; and other stakeholders.

Implementing the domestic carbon market in parallel with international exchange

According to Mr. Nguyen Tuan Quang, Deputy Director General of the DCC, the legal framework for Viet Nam's carbon market has fundamentally been completed with key documents. These legal documents include Decree No. 06/2022/ND-CP on GHG emission mitigation and ozone layer protection (as amended and supplemented by Decree No. 119/2025/ND-CP); Decree No. 29/2026/ND-CP on the domestic carbon exchange; the Prime Minister's Decision No. 263/QD-TTg dated February 9, 2026; and the Ministry of Agriculture and Environment's Decision No. 699/QD-BNNMT dated February 27, 2026, approving the total GHG emission quotas for the 2025–2026 period and pilot allocation for 2025 and 2026.

Notably, Decree No. 112/2026/ND-CP on the international exchange of emission mitigation outcomes was issued by the Government on April 1, 2026. "The Decree is of great significance, marking the transition from building a domestic carbon market to connecting with the international carbon market and establishing a legal corridor for the exchange and transfer of emission reduction results between Viet Nam and international partners," Mr. Quang emphasized.

Simultaneously implementing the domestic market and expanding international cooperation under Article 6 of the Paris Agreement will help Viet Nam develop a synchronous and modern carbon market ecosystem, while attracting financial resources and technology to support emission reduction goals.

Affirming the central role of enterprises, Ms. Francesca Nardini, Deputy Resident Representative of UNDP in Viet Nam, stated that the training series is designed to provide direct support to the first 110 enterprises allocated emission quotas for the 2025–2026 period. These entities will directly participate in the carbon market, determining the effectiveness as well as the success of the pilot phase.

An efficiently functioning market will help mobilize investment, foster innovation, and enable enterprises to build competitive advantages as global emissions-related barriers become increasingly stringent.

Required procedures for trading on the exchange

To participate in the carbon market, enterprises need to clearly understand the technical infrastructure and operational processes. Ms. Dang Hong Hanh from Viet Nam PoA Carbon Management Joint Stock Company, a UNDP expert, clarified that emission quotas are the commodity in the compliance market, while carbon credits are mainly generated from emission-reduction projects and can be used to offset quotas at a certain ratio.

The National Registry System is the sole platform that records ownership and facilitates transactions such as deposit, offsetting, and surrender of emission quotas. Enterprises will trade quotas and credits via the domestic carbon exchange. During the pilot phase, transactions will be conducted through agreements, where enterprises independently negotiate and settle payments via securities companies, the Hanoi Stock Exchange, and the Viet Nam Securities Depository and Clearing Corporation (VSDC). The first 110 enterprises will be allocated quotas free of charge during this period.

Despite being built on the stock market platform, trading of emission quotas and carbon credits will be separated from other types of transactions. Mr. Le Nguyen Trung Thanh, Deputy Head of Market Surveillance at the Viet Nam Exchange, noted that participants must have sufficient funds when buying and sufficient assets when selling, all within a single trading account. Prohibited practices include price manipulation, dissemination of false information, and exploitation of system loopholes to appropriate carbon assets.

Mr. Dao Tuan Trung, Director of the Research, Analysis, and Product Development Center at VietinBank Securities JSC, stated that enterprises will place trading orders, after which securities companies will verify account conditions, cash balances, and asset holdings before submitting orders to the exchange for matching and immediate settlement.

He also guided enterprises in preparing transaction documentation, including account opening and service registration contracts; registration for trading GHG emission quotas and carbon credits; enterprise registration certificate; company charter; power of attorney or authorization contract (if any); relevant appointment decisions; and identification documents of the legal representative, chief accountant, and authorized persons.

In the coming period, enterprises within the list will still be required to conduct GHG inventories as a basis for determining emission quotas and participating in the market. Mr. Luong Quang Huy, Head of the GHG Emissions Management and Ozone Layer Protection Division (Department of Climate Change), noted that enterprises need to clearly define emission scopes and boundaries, including direct emissions (Scope 1) and indirect emissions from energy (Scope 2), and are encouraged to consider other indirect emissions (Scope 3) depending on sectoral requirements. At the same time, enterprises must ensure the quality of activity data, prioritize the use of national emission factors, establish data quality management processes, and prepare complete reporting documentation.

Within the framework of the training workshop, enterprises, management agencies, and experts exchanged views, shared experiences and challenges, and proposed solutions to ensure the effective implementation of the pilot carbon market phase. The DCC and UNDP reaffirmed their commitment to continuing close coordination with government agencies, businesses, and development partners to support the launch and operation of Viet Nam's carbon market.