Viet Nam takes the initiative in emission reduction, ready to join carbon market

Speaking at the panel discussion of the National Forum on Environment and Climate – From Policy to Action, organized by the Ministry of Agriculture and Environment, delegates shared a common view that greenhouse gas (GHG) inventory is no longer merely a responsibility but has become a prerequisite for businesses to enhance their competitiveness and achieve sustainable development.

Transparent emission data becomes a mandatory requirement

In line with the roadmap to complete legal regulations on GHG emission reduction, one of the key milestones is the pilot allocation of GHG emission quotas to the 110 largest emitters. This allocation requires enterprises to restructure their production methods and emissions governance while ensuring transparent management of operational data and emissions inventories.

According to Mr. Nguyen Tuan Quang, Deputy Director General of the Department of Climate Change, the enterprises allocated emission quotas are among 2,166 facilities subject to mandatory GHG inventory as stipulated by the Prime Minister. All of these enterprises strictly comply with inventory procedures and reporting requirements and have developed emission reduction plans.

In addition to mandatory regulations, the Government has introduced various policies to support enterprise transition, including financial incentives and tax and fee measures, such as registration fee exemptions for electric vehicles and import tax incentives for high-tech products. Notably, environmental criteria and the certification of investment projects classified under the green taxonomy provide a legal basis for enterprises to access green finance sources, thereby supporting emission reduction efforts. The Ministry of Agriculture and Environment is also finalizing guidelines on green projects, circular economy, and ESG criteria for submission to the Prime Minister.

According to Assoc. Prof. Dr. Nguyen Dinh Tho, Deputy Director General of the Institute of Strategy and Policy on Agriculture and Environment, Vietnamese enterprises still have significant potential for emission reduction, particularly in the manufacturing, energy, agriculture, and natural resource utilization sectors.

Vietnamese enterprises' green transition has become increasingly evident in recent years, driven by international commitments, export market requirements, and increasingly strict ESG standards. However, the level of transition remains uneven across business groups, particularly between large enterprises and small- and medium-sized enterprises.

He noted that the development of a carbon market and carbon credit mechanism will open up significant opportunities for Vietnamese enterprises in the coming period. This is not only a financial tool for the green transition but also a driver for technological innovation, improved resource efficiency, and deeper participation in low-emission supply chains.

Enterprises proactively join the “game”

Sharing solutions to reduce carbon emissions in the steel industry, Mr. Nguyen Phu Duong, Deputy General Director of the Viet Nam Steel Corporation, stated that the steel sector is one of the largest GHG emitters, with many enterprises subject to emission quota allocation.

In recent years, the Corporation has directed its subsidiaries to focus on technological innovation toward modern, energy-efficient, and low-emission production. This is a core solution for directly reducing GHG emissions at the production stage. Besides, enterprises are enhancing energy efficiency, optimizing operational processes, and increasing the utilization of recycled and scrap materials in steel production. In particular, they are gradually transitioning toward more environmentally friendly raw materials and fuels while implementing emission reduction roadmaps aligned with national orientations.

According to Mr. Nguyen Phu Duong, emission reduction is not only a mandatory requirement but also an opportunity for enterprises to enhance competitiveness and meet increasingly stringent green standards in both domestic and international markets.

Sharing the same view, Mr. Nguyen Hoang Minh, Executive Director of Manufacturing at Vinamilk, said Vinamilk has implemented a green transition across multiple areas to optimize production costs and labor efficiency. First and foremost, this involves transforming employee awareness, helping workers become more conscious in operational practices, thereby improving labor productivity, increasing production line efficiency, and saving more energy and raw materials. These improvements are directly associated with corresponding emission reductions.

Vinamilk has also reduced the use of fossil fuels in production processes, including operating boilers using pellets and gradually moving toward the complete elimination of fossil fuel use for boiler combustion, thereby contributing to lower emissions. In equipment investment, Vinamilk consistently prioritizes machinery that delivers higher efficiency in productivity, quality, and product design. The overarching objective is to reduce GHG emissions across the entire production process.

Under the strategy “For a Better Viet Nam,” Heineken Viet Nam remains steadfast in its goal of achieving net-zero emissions across its entire supply chain. According to Ms. Pham Thi Truc Thanh, Head of Sustainability at Heineken Viet Nam, the company is committed to continued investment, technological innovation, and close cooperation with the Government, ministries, and industry associations to translate policy directions into practical environmental solutions.

Putting the carbon exchange into operation

Mr. Nguyen Tuan Quang stated that if remaining procedures are completed on schedule, the pilot operation of the domestic carbon exchange could be launched in June, opening an additional market-based tool to support Viet Nam’s emission reduction and green transition goals.

Currently, the carbon commodities entering the market are emission quotas, which are already ready for deployment. He noted that the operation of the domestic carbon exchange involves multiple stakeholders, including state management agencies, the State Securities Commission, the Viet Nam Exchange, the Hanoi Stock Exchange, settlement banks, and securities firms providing trading support services.

Several technical components are still being finalized, including operational regulations for the carbon market and licensing procedures for securities companies participating in the market. Regarding technical infrastructure, the Ministry of Agriculture and Environment has basically completed the database system for emission quota registration and carbon credits. The system has been certified for information security and is ready for operation. Relevant units have also conducted technical testing of the trading system. In parallel, training and capacity-building programs for enterprises are being implemented to ensure readiness for participation in the domestic carbon market.

Regarding the carbon market, Assoc. Prof. Dr. Nguyen Dinh Tho emphasized that enterprises must pay special attention to understanding the market’s operating mechanisms, including transparent measurement, reporting, and verification of emissions. At the same time, they should proactively develop long-term emission reduction strategies rather than react passively after policies are implemented. Enterprises must prepare both financial and technological capacity to adapt, especially as transition costs may be substantial.