Businesses Can Trade Carbon Credits Through Securities Accounts

Enterprises participating in Vietnam’s domestic carbon exchange include emission-intensive firms trading greenhouse gas emission allowances, businesses, organizations and investors exchanging carbon credits, and intermediary institutions such as securities firms and payment banks that support trading.

At a policy briefing on building the domestic carbon market, a representative from the Carbon Market Department and the Climate Change Department under the Ministry of Agriculture and Environment said the goods traded on the exchange include greenhouse gas emission allowances and carbon credits.

Allowance allocation and trading eligibility

To date, emission allowances have been allocated to 110 large emitters in the power, steel and cement sectors, totaling over 500 million tonnes for 2025–2026. The 110 facilities include 34 power plants, 25 steel facilities and 51 cement plants. This group is the first to be eligible to trade on the domestic carbon exchange.

Under the rules, if a facility exceeds its permitted emissions, it must purchase additional allowances in accordance with the law. If emissions are reduced effectively, the enterprise can save or sell surplus allowances for profit.

Carbon credits and the 30% offset limit

Businesses and investors can develop emission-reduction projects to generate carbon credits and bring them to the market. Vietnam allows enterprises to use carbon credits to offset the portion of emissions that exceed the cap, up to 30%.

Enterprises emitting below the allocated cap may sell surplus allowances. Those exceeding the threshold must buy additional allowances or use carbon credits to offset, but the offset using credits cannot exceed 30% of the allocated allowances.

The Carbon Market Office representative said this design differs from some international markets by providing flexibility for businesses during the early transition and to support investment in emission reductions.

Credit types eligible for domestic trading

The Carbon Market Office also said three types of carbon credits are eligible for trading in the domestic market:

• Credits under the domestic exchange mechanism (offsetting domestically).
• Bilateral and multilateral mechanisms under Article 6.2 of the Paris Agreement.
• The mechanism under Article 6.4 of the Paris Agreement.

Credits under international mechanisms such as Verra and Gold Standard, if they do not meet conditions for inclusion in the domestic market, can still be traded on the international market under Government Decree 112/2026/ND-CP dated 1 April 2026. Organizations with crediting programs must register the number of credits in the National Registry System to support emission management within Vietnam.

Operational model and participation requirements

Operationally, the domestic carbon exchange will rely on the stock market’s existing infrastructure. The exchange is designed to establish a transparent price discovery mechanism reflecting supply and demand, using the stock market’s existing operating model.

Under this framework, the Hanoi Stock Exchange will organize trading, while the Vietnam Securities Depository and Clearing (VDSC) will perform custody and settlement.

Enterprises and organizations wishing to participate must have a tax code and complete registration in the National Registry System of the Ministry of Agriculture and Environment.

Trading entities must also hold an account with a securities firm and may only use one securities trading account. Enterprises may use existing securities accounts to participate; if not, they should open a new one. The carbon market and the stock market will be governed with clear separation to ensure market-specific transparency.

Legal framework and pilot-phase arrangements

On 19 January 2026, the Government issued Decree No. 29/2026/ND-CP on the domestic carbon exchange, establishing a full legal framework for organizing and operating Vietnam’s carbon market.

Decree No. 29/2026/ND-CP includes six chapters and 35 articles covering activities related to the domestic carbon exchange, including registration, domestic code issuance, transfer of ownership, custody, trading and settlement of greenhouse gas emission allowances and eligible carbon credits, as well as responsibilities of agencies and organizations and reporting and information disclosure requirements.

The Decree applies to the Vietnam Securities Depository and Clearing, the Vietnam Securities Exchange and the Hanoi Stock Exchange, as well as agencies, organizations and individuals involved in trading under environmental protection law and those involved in operating, registering, coding domestically, transferring ownership, custody, trading and settlement of emission allowances and carbon credits.

During the pilot phase of the domestic carbon exchange through 31 December 2028, the Vietnam Securities Depository and Clearing, the Vietnam Stock Exchange and the Hanoi Stock Exchange will not charge for services on the domestic carbon exchange.

Impact and policy rationale

Experts said the carbon market is not only a compliance obligation but also an opportunity. Early and proactive participation can help enterprises optimize resources, plan production with emission control, spur technological innovation and build competitive advantage as greenhouse gas constraints tighten globally.

International experience cited by the Carbon Market Office indicates that emission allowances tend to tighten over time, requiring enterprises to proactively adapt and increase investment in technology.