Vietnam to Launch National Carbon Market by 2029

In a major move for Southeast Asia’s climate finance landscape, Vietnam has officially committed to launching a national carbon market — a step that could reshape the region’s carbon trading ecosystem.

On January 24, 2025, Vietnam’s Prime Minister issued Decision No. 232/QD-TTg, laying out a phased roadmap to operationalize a domestic carbon market by 2029. The plan includes a legal framework to be finalized by June 2025, followed by a multi-year pilot emissions trading system (ETS).

How This Shifts the Climate Investment Landscape

For years, project developers and sustainability investors have viewed Vietnam as a market full of potential but lacking regulatory clarity. With this new roadmap, Vietnam signals a clear direction: it intends to become an active player in global carbon trading — and it's laying the legal and institutional groundwork to get there.

This development is particularly relevant for countries like Indonesia, where frameworks are also evolving. The shared ambition across ASEAN for environmental integrity and high-quality carbon credits creates space for learning, cooperation, and healthy competition.

Key Milestones Ahead for Vietnam’s Carbon Market

Legal Framework – by June 2025

Vietnam will finalize legal guidelines for carbon credit trading, GHG emissions quotas, and a national registry system. This is a major milestone for domestic and international players alike.

Pilot ETS Phase – 2025 to 2028

The pilot phase will target carbon-intensive sectors like steel, cement, and coal-fired power. Participants will receive emissions allowances and can trade Certified Carbon Credits (CCCs) sourced domestically or through global mechanisms like the CDM and JCM.

Full Implementation – from 2029

The carbon market will become fully operational, with the Hanoi Stock Exchange managing the trading platform. Additional sectors will be included, and emissions allowances may be auctioned, similar to mechanisms in mature markets.

Implications for Business & Climate Investment

Market Incentives for Decarbonization

Companies will have financial and reputational reasons to innovate and reduce emissions.

Attractive Climate Investment Landscape

With regulatory certainty on the horizon, Vietnam could become a destination for carbon finance in nature-based solutions and clean technologies.

Regional Synergy

This aligns with broader shifts across ASEAN and enhances cross-border learning for integrated carbon markets.

Summarize

Vietnam’s carbon market roadmap represents more than policy reform — it’s a strategic move to future-proof the country’s climate economy. As the region moves toward net zero, updates like these underscore why it’s important to stay ahead, informed, and collaborative.

At Carbontide, we’ll continue to monitor these developments closely, not just to observe, but to engage where we can create real impact.

Keywords: carbon market Indonesia, carbon credits, carbon investment, REDD+, ARR, Blue Carbon, IDXCarbon, ESG, net-zero, nature-based solutions, high-integrity carbon credits, carbon project development, sustainability, tropical forestry, climate finance, GIS carbon analysis.