Vietnam has approved an agreement with Singapore that establishes a legal framework for cooperation on carbon credits under Article 6 of the Paris Agreement, opening a path for emissions reduction projects developed in Vietnam to generate credits for transfer to Singapore.
The Vietnamese government gave the green light to the Implementation Agreement through Resolution 235/NQ-CP and assigned the Ministry of Foreign Affairs to complete the procedures required for the pact to enter into force, official state-run news agency VNA reported.
The bilateral deal was signed in September 2025 and is intended to deepen cooperation between the two countries in the international carbon market. The governments said the arrangement would also contribute to their climate efforts.
Framework Opens Route To International Carbon Market
Under the agreement, Vietnamese organizations and businesses will be able to develop greenhouse gas (GHG) emissions reduction projects designed to meet international carbon credit standards. Credits generated by eligible projects can then be recognized and transferred to Singapore.
The pact creates a binding bilateral framework for those activities, giving project developers a defined legal basis for participating in cross-border carbon credit transactions.
The agreement does not yet set out the individual projects that will qualify or the specific methodologies that developers will be required to use.Vietnamese authorities said details on the approval process for carbon credit projects, along with the list of eligible methodologies, will be announced later.
Relevant: Vietnam, Singapore Ink Carbon Credit Agreement Under Article 6
The approval marks a further step in implementing international carbon market cooperation between the two countries.
For Vietnam, the framework creates an avenue for domestic emissions reduction projects to produce credits that can be recognized internationally and transferred to a Singapore market.
For Singapore, the agreement establishes a bilateral channel for working with Vietnamese project developers within the framework of Article 6 of the Paris Agreement.
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