Decree 29 stipulates that the domestic carbon exchange is a comprehensive legal framework for the organization and operation of the carbon market in Viet Nam.

Comprising six chapters and 35 articles, Decree 29 regulates activities related to the domestic carbon trading platform such as registration, domestic coding, transfer of ownership, custody, trading, and settlement of greenhouse gas (GHG) emission quotas and eligible carbon credits. It also defines the responsibilities of governing agencies and organizations in managing the exchange, as well as requirements for reporting and information disclosure.

The applicable entities include the Viet Nam Securities Depository and Clearing Corporation (VSDC), the Viet Nam Exchange (VNX), and the Ha Noi Stock Exchange (HNX). The regulation also applies to agencies and organizations participating in the domestic carbon market under environmental protection laws, as well as all entities and individuals involved in the operation, registration, and settlement of GHG quotas and carbon credits.

GHG emission quotas and carbon credits eligible for trading must comply with Decree No. 06/2022/ND-CP (dated January 7, 2022) regarding the reduction of GHG emissions and the protection of the ozone layer, as amended and supplemented by Decree No. 119/2025/ND-CP.

All GHG quotas and carbon credits must be centrally registered on the national registration system of the Ministry of Agriculture and Environment before they can be deposited or traded on the domestic exchange. The ministry is responsible for recording information on the registration system, including details of the quotas and credits, as well as ownership information (identification of the entity and the volume of quotas or credits held).

To ensure transparency and prevent duplication, GHG quotas and carbon credits must be registered, issued domestic codes, and deposited centrally. The coding process will be unified across the national registration system, ensuring that each quota and carbon credit carries a unique, non-duplicable identification number before entering the market.

Notably, during the pilot operation period of the domestic carbon exchange through December 31, 2028, the Viet Nam Securities Depository and Clearing Corporation, the Viet Nam Stock Exchange, and the Ha Noi Stock Exchange will not charge fees for providing services on the domestic carbon exchange.

Viet Nam is actively developing a centrally managed domestic carbon market, with a pilot phase from late 2026 to 2028 and full implementation scheduled for 2029. This development has been identified as a pivotal strategy to achieve its greenhouse gas (GHG) emission reduction targets by 2030 and ultimately reach an ambitious goal of reaching net-zero emissions by 2050, which aligns with Viet Nam’s broader environmental and economic objectives./.