Viet Nam · Emissions trading system
Viet Nam Emissions Trading System (pilot phase)
Viet Nam's national ETS is in a pilot phase covering 2025–2028, with free allocation to 110 thermal power, steel and cement facilities and compliance obligations applying from 2025. Allowance caps were approved by a Prime Minister's Decision in February 2026, and a domestic carbon exchange opened at the Hanoi Stock Exchange on 29 June 2026.
In forcesince 9 Feb 2026Verified 4 Oct 2026
The ETS is established under the Law on Environmental Protection and Decree 06/2022/ND-CP, as clarified and operationalised by Decree 119/2025/ND-CP, effective from August 2025. During the pilot (2025–2028) allowances are allocated free of charge; auctioning and wider sectoral coverage are to be introduced gradually from 2029.
Decision 263/QD-TTg of 9 February 2026 approved allowance caps and covered entities — 243.1 MtCO2e for 2025 and 268.4 MtCO2e for 2026 — for 34 thermal power plants, 25 iron and steel facilities and 51 cement plants, with retroactive compliance obligations beginning in 2025, according to ICAP. Decree 29/2026/ND-CP of 19 January 2026 set the framework for the domestic carbon exchange, which launched at the Hanoi Stock Exchange on 29 June 2026, with no fees for participants during the pilot through 2028.
Legal journey
From proposal to operation
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Enacted
Law on Environmental Protection adopted, providing for a domestic carbon market
cdn.climatepolicyradar.org -
Rulemaking
Decree 06/2022/ND-CP on GHG mitigation and carbon market development issued
cdn.climatepolicyradar.org -
In force
Decision 263/QD-TTg approves 2025-2026 allowance caps for 110 facilities
icapcarbonaction.com
Each milestone links to the page it was checked against. Dates are given only to the precision the source supports.
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