The event was jointly organised by Vietnam’s Ministry of Finance (MOF) and the Southeast Asia Energy Transition Partnership (ETP) under the United Nations Office for Project Services (UNOPS).

Addressing the workshop, Vu Thi Chau Quynh, deputy director of the MOF’s Legal Department, emphasised that the 2020 Law on Environmental Protection identifies the carbon market as an important economic tool for environmental protection and assigns the MOF to take the lead, in coordination with relevant ministries and agencies, in developing and operating the domestic carbon market.

Since mid-2024, the MOF has been implementing a UNOPS-funded technical assistance project under the ETP framework to strengthen its capacity in studying market models and preparing for the pilot operation of a carbon exchange in Vietnam. After nearly two years of implementation, the project has supported the ministry’s units in improving their capacity to research and analyse the legal framework, infrastructure, and operational mechanisms of the carbon market.

Do Thanh Lam, an official from the MOF’s Legal Department, pointed out that the legal framework for the carbon market is gradually being completed through a series of new regulations. In particular, the Government’s Decree No. 29/2026/ND-CP on the domestic carbon exchange has laid the foundation for the registration, issuance of codes, custody, trading, settlement, and transfer of ownership of greenhouse gas emission allowances and carbon credits. It also clearly defines the rights and responsibilities of market participants.

Meanwhile, Professor Michael Mehling, deputy director of the Center for Energy and Environmental Policy Research (CEEPR) at the Massachusetts Institute of Technology (MIT) assessed that Vietnam is on the right track by leveraging existing stock exchange infrastructure to develop its domestic carbon market.

However, he noted that to ensure the market operates efficiently and transparently, Vietnam needs to further strengthen its legal framework, governance mechanisms, technical infrastructure, and the capacity of market participants.

According to the expert, a major current challenge is that the legal nature of emission allowances and carbon credits has not yet been clearly defined within civil, commercial, and tax law systems. This creates difficulties for businesses in determining tax obligations and using carbon credits as collateral in financial activities.

Therefore, he suggested, Vietnam should soon issue unified guidance on the legal status of carbon units, while continuing to refine implementing regulations to establish a complete legal foundation for the market.

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