Prospects for Carbon Credit Market in Vietnam

Under the policy of achieving virtually zero greenhouse gas (“GHG”) emissions (“carbon neutrality”) by 2050 , the Vietnamese government, in Decree No.06/2022/ND-CP (“Decree No.06”) based on the Law on Environmental Protection 2020 (No.72/2020/QH14), lays out a roadmap for establishing a carbon credit market in Vietnam. According to Decree No.06, the carbon credit market by the Vietnamese government is expected to be officially launched in 2028 after a pilot operation from 2025 to 2027 . In addition, legal developments have recently been underway, including the publication of a draft amendment to Decree No.06 and the Prime Minister’s Decision No.13/2024/QD-TTg (“Decision No.13”) on the GHG inventory obligations. Thus, this article explains the outlook of the carbon credit market in Vietnam and its impact on Japanese companies.