Vietnam Officially Launches Domestic Carbon Exchange – A Strategic Milestone for the Carbon Market

Vietnam Officially Launches Domestic Carbon Exchange – A Strategic Milestone for the Carbon Market

Annie Nguyễn | June 29, 2026

HANOI – On the morning of June 29, 2026, Vietnam's domestic carbon exchange officially began operations at the Hanoi Stock Exchange (HNX) under the allowance code VN2025, marking a significant milestone in the formation and development of the country's carbon market.

This event is the result of implementing the Project on Establishing and Developing Vietnam's Carbon Market under Prime Minister's Decision No. 232/QĐ-TTg.

System Ready for Pilot Phase

Under the current roadmap, tradable commodities on the exchange include two types: Greenhouse Gas Emission Allowances and Carbon Credits. The trading period runs from June 29, 2026, to December 24, 2027, with a total of 511,473,846 allowances allocated and a minimum offer price of 135,000 VND.

On the very first morning of operations, total transaction value exceeded VND 100 million.

Speaking at the launch ceremony, Mr. Nguyen Anh Phong, Chairman of HNX, stated that under the direction of VNX and the State Securities Commission (SSC), HNX has closely coordinated with the Department of Climate Change (Ministry of Agriculture and Environment) , Vietnam Securities Depository and Clearing Corporation (VSDC) , BIDV, and other relevant units to build the legal framework and operational systems for the market.

The initial membership system includes 6 securities companies meeting participation requirements and over 100 emission facilities on the greenhouse gas emission allowance allocation list.

Fee Exemption to Encourage Business Participation

To facilitate business participation during the pilot phase through 2028, the Government has issued Decree No. 29/2026/NĐ-CP, which stipulates no fees for enterprises participating in the domestic carbon exchange.

Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, shared: "This policy demonstrates the Government's commitment to standing alongside the business community, helping to reduce market participation costs, and encouraging enterprises to actively implement emission reduction solutions, innovate technology, and pursue sustainable development".

Opportunities for Businesses and Financial Markets

According to Ms. Phuong, in the context of climate change posing significant challenges, the establishment of the carbon exchange not only creates a transparent, fair, and publicly accessible trading mechanism for emission allowances and carbon credits but also serves as an economic tool enabling businesses to proactively innovate technology, improve production efficiency, and reduce emissions.

For the financial market, this represents a new component of the green financial ecosystem, opening up channels for mobilizing and allocating resources to sustainable development projects, gradually aligning with international practices in capital and environmental market development.

Mr. Luong Hai Sinh, Chairman of the Members' Council of the Vietnam Stock Exchange, emphasized: "Safe, transparent, and efficient operations are not only a professional task but also contribute to achieving economic development goals, enhancing the competitiveness of Vietnamese enterprises, and realizing the net-zero emissions target by 2050".

 Strategic Impact on the Hydrogen Industry

The operation of the domestic carbon exchange is not only a milestone for the carbon market but also opens up transformative opportunities for Vietnam's hydrogen industry, particularly green hydrogen – which was designated as a national strategic technology product under Prime Minister's Decision No. 21/2026/QĐ-TTg dated April 30, 2026.

Additional Revenue Stream from Carbon Credits

Under Decree 112 of the Government, green hydrogen projects – among the new, high-cost technologies not yet or rarely deployed in Vietnam – are permitted to transfer up to 90% of generated carbon credits. This mechanism aims to attract international investors, improve project economics, and encourage large-scale emission reduction initiatives. In contrast, common emission reduction activities are only allowed to transfer a maximum of 50%. This special preference demonstrates the Government's commitment to green hydrogen – creating a new revenue stream from carbon credits for investors and project developers.

Lowering Production Costs and Enhancing Competitiveness

Through the trading of emission allowances and carbon credits, the carbon market helps businesses optimize compliance costs, incentivizes investment in clean technologies, and improves energy efficiency. For the hydrogen industry, this means:

• Green hydrogen production costs can be partially offset by revenue from carbon credit sales, bringing green hydrogen closer to cost parity with fossil-fuel-based hydrogen.

• Green hydrogen production facilities can leverage carbon credits as a financial instrument to improve project economics, supporting scaled production.

Attracting International Investment and Technology Transfer

The global carbon credit market is projected to reach USD 24 billion by 2030. With preferential carbon credit mechanisms and a clear legal framework under Decree 29/2026/NĐ-CP, Vietnam is well-positioned to capture a significant share of this market. The combination of the carbon market and Vietnam's national hydrogen strategy creates a powerful pull for investors from Japan, South Korea, and Europe – partners seeking high-quality green hydrogen and carbon credits.

The Connecting Role of VAHC

The co-organization by the Vietnam ASEAN Hydrogen Club (VAHC) of the International Workshop "H₂ Technology Solutions in the Sustainable Development Roadmap for Agriculture, Environment, and Carbon Market in Vietnam" on July 31, 2026, demonstrates the close linkage between the hydrogen sector and the carbon market. This serves as a platform to connect businesses, investors, and policymakers in leveraging carbon market opportunities to drive green hydrogen development.

Synchronized Development Roadmap

Vietnam's carbon market will run in a pilot phase until 2028 before official operation from 2029. In parallel, green hydrogen has been identified as a national strategic technology product. The synchronized timeline between the two sectors will create a synergistic effect:

• 2026–2028 Phase: Pilot hydrogen projects benefit from the 90% carbon credit preferential rate, creating initial investment momentum.

• 2029 Onward: The carbon market enters official operation, connecting with international markets, enabling scale-up of the hydrogen industry.

Conclusion: The domestic carbon exchange is not merely a component of the green financial ecosystem but also a strategic lever helping Vietnam's hydrogen industry overcome initial cost barriers, attract investment, and move toward large-scale commercialization – contributing directly to the Net Zero 2050 target.

Thông tin bổ sung / Additional Information