Vietnam's greenhouse gas inventory regulations: six steps for enterprises to plan reductions and participate in the carbon market

To prepare for and comply with greenhouse gas inventory regulations, businesses need to understand their emissions catalog, identify the scope of emission sources, determine major sources, and pinpoint areas with potential for emission reductions. In Vietnam, greenhouse gas inventories have become a mandatory requirement as climate change worsens. Decree 06/2022/ND-CP and Decree 119/2025/ND-CP (amending Decree 06) establish the greenhouse gas emissions management system, requiring firms to conduct inventories and develop emission reduction plans.

Key compliance requirements and remaining challenges

One of the biggest challenges for businesses is to clearly understand their emissions catalog, identify major emission sources and those with potential for reduction. Experts note that many enterprises still confuse greenhouse gas inventories with assessments of other pollutant emissions, underscoring the need for detailed technical guidance and an online reporting system to support compliance.

What Decree 119 changes for emission allowances

Decree 119 amends and supplements provisions related to the mechanism for allocation and management of emission allowances. The regulation provides enterprises with more flexibility in managing allowances, including the ability to transfer, trade, or use allowances to offset emissions. This is positioned as a significant step toward Vietnam’s carbon market operations, aligned with the national roadmap.

Scope of entities required to conduct inventories

Under Decision 13/2024/QD-TTg, 2,166 facilities in emission-related sectors must carry out greenhouse gas inventories. These entities include:

• Thermal power plants
• Industrial facilities
• Freight transport companies
• Commercial buildings
• Solid waste treatment facilities

Conducting greenhouse gas inventories supports legal compliance and can also create opportunities to participate in the carbon market, trade emission allowances, and generate carbon credits.

Approach to building an emission reduction plan

Mr. Nguyen Tien Hai, Technical Director of Energy and Environment Consulting JSC, said that building a greenhouse gas emission reduction plan should follow six basic steps. Enterprises need to define the scope, set reduction goals, assess feasibility, and conduct a cost-benefit analysis of measures to support sound and effective decision-making.

Carbon market participation and timelines for credits

Enterprises included in the allocation list may have opportunities to participate in the carbon market and achieve reductions at the most cost-efficient cost. For projects that generate carbon credits, firms must follow strict procedures, and it typically takes about two years to generate a carbon credit.

Expert recommendations for enterprises

To prepare for and comply with greenhouse gas inventory regulations, Mr. Hai recommends that enterprises:

• Clearly understand their emissions catalogs
• Regularly update themselves on new regulations
• Identify opportunities for emission reductions

He also emphasized that integrating greenhouse gas management into business operations and building a strategy to participate in the carbon market are key to turning compliance challenges into opportunities for revenue and profit.

Preparing for the carbon market’s MRV regime

With Vietnam’s carbon market still developing, enterprises are encouraged to proactively build a carbon-neutral, Net Zero strategy to participate. The pilot phase of the carbon market through 2028 is described as an important period for firms to adapt to the MRV regime and new green rules. Early preparation, securing robust data, and selecting appropriate investment points are expected to help create competitive advantage and support sustainable growth.

The full article content is published in Vietnam Economic Times issue 14-2026, released on 06/04/2026.