Vietnam's Carbon Trading Framework Finalized! Pilot Launch in 2026; Mandatory "Cap-and-Trade" System to Commence in 2028

Attention Vietnam Supply Chains: The Era of Carbon Pricing is Here
For Taiwanese manufacturers operating in Vietnam, carbon costs are no longer a theoretical concept. On the 24th of this month, the Vietnamese government officially finalized its domestic carbon credit trading framework and announced the launch of a pilot program through its securities exchange mechanism.

According to the new roadmap, 2026 and 2027 will serve as a "Pilot Phase" for market participants to familiarize themselves with operations. Starting in 2028, a "Mandatory Cap-and-Trade" (Emission Trading Scheme) will be implemented nationwide across all sectors. This means that high-emission enterprises in Vietnam exceeding their quotas must purchase carbon credits in the market to offset their excess, or face regulatory penalties.

📅 Key Timelines and Mechanism Highlights

1. Three-Phase Implementation:

2025 Q1: Emission quotas have already been allocated to approximately 150 key enterprises in power, steel, and cement sectors.

2026-2027 (Pilot Phase): Focus on policy testing and operational fine-tuning. To encourage participation, transaction fees will be waived until the end of 2028.

2028 (Official Launch): Full-scale implementation of mandatory cap-and-trade.

2. "Securitized" Trading Mechanism: Vietnam adopts a unique "Carbon Securitization" model. Enterprises must open independent "Carbon Trading Accounts" with authorized securities firms (separate from capital accounts). The ordering, matching, and settlement processes will be highly integrated with existing securities infrastructure to ensure price transparency and reduce operational risk.

3. Stringent Coding Control: All quotas and carbon credits must be centrally registered in the national system to obtain a "Unique Identification Code" before they can be traded, strictly preventing Double Counting.
 

Disclaimer:

1.The articles compiled and published by this association on the Taiwan Net Zero Emissions Association's official website and in the Member Biweekly Report are for the purpose of introducing international environmental trends and for educational use only, not for profit.

2.Any legal responsibilities or losses resulting from the use or adaptation of articles translated by the association shall be borne solely by the user or adapter.