HANOI, May 28, 2025 – Vietnam is poised to take a major leap in climate action with the upcoming pilot of its domestic carbon exchange, a significant milestone in Southeast Asia’s green transition. Building on decades of experience with global carbon credit standards, the country is now aiming to establish a robust carbon market that aligns with international norms and supports a growing pipeline of emissions-reduction projects.
A Legacy of Early Adoption, a Future of Opportunity
Since the early 2000s, Vietnam has emerged as a regional leader in carbon credit generation. As of March 2025, the country has registered an impressive 274 projects under the Clean Development Mechanism (CDM), 43 under Verra’s Verified Carbon Standard (VCS), and 45 under the Gold Standard (GS). These figures position Vietnam fourth globally in CDM project numbers and ninth in carbon credit issuance volume.
Vietnam’s carbon potential stems from its diverse industrial base, natural resources, and renewable energy capacity. Carbon credit projects are being developed across a wide array of sectors – including hydropower, wind and solar energy, agriculture, waste management, wastewater treatment, and forestry – opening the door for both voluntary and compliance market participation.
Compliance vs. Voluntary Markets: Navigating Complexity
The Vietnamese government is expected to pilot its domestic carbon market between June 2025 and 2028, with full operations scheduled for 2029. During the pilot phase, only around 150 large emitters, primarily in high-carbon sectors such as thermal power, steel, and cement, will be required to participate in the compliance market.
In contrast, the voluntary carbon market (VCM) remains open and decentralised, allowing individuals and companies to participate freely by developing and trading credits under international standards like Verra and GS.
However, for many businesses, especially small and medium-sized enterprises (SMEs), navigating the carbon market landscape remains challenging. A lack of clarity on the differences between compliance and voluntary markets, limited knowledge about emission-reduction technologies, and the complexity of monitoring, reporting, and verification (MRV) systems create significant barriers.
“Many companies struggle to understand how to register projects, implement emission-reduction solutions, or meet data and reporting standards,” said a market analyst. “These hurdles are especially daunting for SMEs with limited financial resources and technical capacity.”
What’s Needed: Policy Clarity, Green Finance, and Ecosystem Support
To address these barriers, businesses are calling on the Vietnamese government to develop a transparent legal framework, with detailed guidelines for project registration, credit eligibility, MRV methodology, and participation rules. These regulations will be vital in building trust among stakeholders and ensuring alignment with international carbon standards.
Finance is another critical piece of the puzzle. SMEs in particular need access to green financing to fund emission-reduction technologies and MRV systems. Clear government guidance on project eligibility for green loans, and enhanced support from banks and financial institutions, could help close this gap.
Stakeholder outreach will also be essential. Increased communication from government agencies can build broader awareness of carbon markets, promote technological innovation, and share successful case studies to encourage more private-sector participation.
Role of Consulting Firms and the Case for a Carbon Market Ecosystem
Consulting firms are expected to play a key role in the expansion of Vietnam’s carbon market. They can assist businesses in setting up MRV systems, navigating the legal and technical requirements of project development, and connecting with potential carbon credit buyers and sellers.
Yet Vietnam still lacks a central platform to link companies with carbon market experts, developers, and investors. This absence of a structured support ecosystem highlights the need for a comprehensive national carbon market network, bringing together consultants, researchers, and policymakers to facilitate knowledge sharing and accelerate project implementation.
Building Trust Through Transparency
As Vietnam prepares to launch its carbon exchange, transparency will be key to success. From emissions quota allocation to the eligibility of carbon credits, every step of the market’s operation must be governed by clearly defined rules and processes to prevent fraud and maintain market integrity.
Businesses and investors alike are seeking a stable, rule-based environment where carbon assets are measurable, verifiable, and tradable. A transparent, government-regulated exchange will encourage participation, attract international buyers, and ultimately boost supply and demand for high-quality credits.
Global Lessons, Local Momentum
Vietnam’s roadmap is ambitious, but not without precedent. Even mature markets like the EU, South Korea, and China spent years building the infrastructure and policy foundations needed for successful carbon trading. Vietnam’s pilot phase from 2025 to 2028 offers a critical window to develop systems tailored to its domestic context, supported by technical assistance from international partners.
If successful, Vietnam could establish itself as a regional hub for carbon trading, opening up new investment avenues, incentivising corporate decarbonisation, and positioning itself as a climate leader in Southeast Asia.
The journey ahead will demand clear regulations, robust infrastructure, and collective commitment — but the building blocks are in place for Vietnam to develop a thriving, competitive carbon market that serves both its economy and the planet.