The Vietnam carbon market officially entered operation on June 29, 2026, marking an important milestone in the roadmap to fulfil emission reduction commitments. Right in the very first trading session, the system successfully connected enterprises with surplus emission quotas and those in need of purchasing additional ones.

Commodities traded on the carbon market currently consist of two main groups: greenhouse gas emission quotas and carbon credits.

According to Mr. Nguyen Tien Hai, Technical Director of the Energy and Environment Consultancy Joint Stock Company (VNEEC), commodities traded on the carbon market currently consist of two main groups: greenhouse gas emission quotas and carbon credits.

Right in the first trading session, 6 enterprises successfully executed transactions with a total volume of around 1,200 quotas. The trading price fluctuated between 130,000–136,000 VND/quota, showing positive signals from the market right from the launch phase. "Climate change and greenhouse gas emissions are no longer a mere compliance burden but are becoming new business opportunities for pioneering enterprises participating in the carbon market," Mr. Hai emphasized.

Mr. Nguyen Tien Hai stated that the legal framework regulating the carbon market and greenhouse gas (GHG) inventories is currently built on the foundation of the Law on Environmental Protection 2020, along with Decree 06 and the amended and supplemented Decree 119/2025. The list of facilities required to conduct GHG inventories is also continuously expanding: from 1,912 facilities (Decision 01/2022) to 2,166 facilities (Decision 13/2024), and is expected to reach around 2,411 facilities in the latest update.

According to Mr. Hai, the expansion of this list demonstrates that the scope of climate policy regulation is covering a broader range, especially in high-emitting industries such as steel, cement, and thermal power.

In principle, enterprises with emissions of 3,000 tons of $CO_2$ equivalent/year or more fall under the mandatory inventory category. However, since it is not yet possible to measure emissions accurately from the start, the temporary criteria are determined based on key energy consumption levels.

For the steel industry, GHG inventories focus on two main scopes: direct emissions from fuel combustion and production processes (Scope 1), and indirect emissions from purchased electricity (Scope 2). Scope 3 is currently not mandatory, unless the enterprise announces a Net Zero commitment or publishes a sustainability report.

One of the issues that enterprises care about most is compliance costs in the carbon market. Under the current mechanism, enterprises may encounter two situations: a surplus or a shortage of emission quotas. If their emissions are lower than the allocated quota, the enterprise can sell the surplus on the carbon market. Conversely, if they exceed the quota, they are forced to buy additional ones to fulfil their surrender obligations.

Mr. Hai believes this is precisely the point that creates a market mechanism, turning carbon emissions from an administrative obligation into an economic factor. However, steel enterprises also face competitive pressure because carbon costs cannot always be fully passed on to product selling prices.

From a technical perspective, the steel industry currently applies Circular 38/2023/TT-BCT of the Ministry of Industry and Trade with a Tier 1 inventory methodology. This method uses a simple formula: production volume multiplied by the emission factor. For example, steel produced using electric arc furnaces (EAF) has an emission factor of about 0.06 tons of $CO_2$/ton of steel, while blast furnace (BF) technology can reach up to 2.47 tons of $CO_2$/ton of product. However, this method does not yet fully reflect the technological differences among enterprises. Therefore, quota allocation needs to head toward a more detailed calculation method based on carbon balance to accurately reflect actual emission intensity.

Enterprises need to build a centralized data management system, ensuring traceability from aggregated figures down to the original source documents.

From practical implementation, VNEEC experts offer several recommendations for steel enterprises:

First, digitize all GHG inventory data. Enterprises need to build a centralized data management system, ensuring traceability from aggregated figures down to the original source documents. This serves as the foundation for inventories, verification, and real-time emission management decisions.

Second, build a specialized team of personnel. Reality shows that many enterprises still scatter their personnel, lacking continuity in training and implementation. This leads to inconsistencies in data and implementation processes.

Third, standardize emission factors to match practical conditions. Currently, the majority of enterprises still use default emission factors under Decision 2626. Developing specific factors is necessary but requires a long-term roadmap due to high costs.

Fourth, conduct pre-verification of inventory reports. Enterprises should not leave all GHG inventory and verification tasks until right before the 2027 report submission deadline, in order to avoid the risk of data shortages and failure to meet verification requirements.

According to the expert, an important point in Decree 119 is the expansion of the carbon credit offset ratio against quotas from 10% to a maximum of 30%, creating more flexible room for enterprises. In addition, emission quotas are allowed to be carried over between allocation periods until the end of 2030, helping enterprises be more proactive in their carbon management strategies. "Enterprises should not look at GHG inventories as a burden. This is a new management tool and a business opportunity if they know how to leverage the carbon market," Mr. Hai concluded.

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