Vietnam advances its emissions trading system with key regulatory developments and compliance obligations starting in 2025
Early 2026 has seen key regulatory developments advance the pilot phase of Vietnam's Emissions Trading System, launched last August. Together, they establish the institutional infrastructure for trading and registry operations and define the initial scope of the pilot system.
On 19 January 2026, the government of Vietnam issued Decree No. 29/2026/NĐ-CP on the regulation of the domestic carbon exchange. The decree establishes a legal and operational framework for domestic carbon trading under the Vietnam ETS.
Emission allowances and carbon credits approved by the Ministry of Agriculture and Environment will be traded on a centralized domestic carbon exchange, operated by the Hanoi Stock Exchange. The Vietnam Securities Depository and Clearing Corporation will manage custody and settlement of allowances and credits, while the Vietnam Stock Exchange is responsible for supervising trading activity and conduct.
On 9 February 2026, the Prime Minister approved the total GHG allowance cap for the V-ETS for 2025 and 2026 and confirmed the number of covered entities across three industrial sectors in the first two years of the pilot. Decision No. 263/QD-TTg sets the total number of allowances at 243.1 million tCO₂e for 2025 and 268.4 million tCO₂e for 2026, to be allocated to 34 thermal power plants, 25 steel mills, and 51 cement plants. The 110 covered entities account for approximately 40% of national emissions, according to Carbon Pulse. Allowances will be freely allocated based on sectoral benchmarks, production data, and emissions reduction targets. This signified that the Vietnam ETS officially came into force, with retroactive compliance obligations for covered entities beginning in 2025.
In late February 2026, the Ministry of Agriculture and Environment issued a circular establishing operational rules for Vietnam’s national carbon registry. The circular sets procedures for issuing, serializing, transferring, cancelling, and disclosing emission allowances and carbon credits.
The registry will function as the central ledger of the ETS, recording ownership, transactions, and compliance status. It will also accommodate credits generated under Article 6 of the Paris Agreement.
