Vietnam launched its first carbon trading exchange Monday, recording inaugural transactions in greenhouse gas emission allowances as the country takes a significant step toward establishing a domestic carbon market in support of its 2050 net-zero target.
The pilot market began trading allowances under the code VN2025 on the Hanoi Stock Exchange (HNX), with results published daily on its website.
Prices climbed as high as 136,000 dong, or roughly $5.17, per tonne of carbon dioxide equivalent (CO2e) during the opening session before settling at 130,000 dong, or about $4.95, per tonne. More than 1,200 tonnes of CO2e changed hands on the first day, generating total transaction value of approximately $6,144.
The allowances represent the maximum volume of emissions companies are permitted to release over a defined period. Vietnam has allocated more than 511 million tonnes of CO2e in allowances for the 2025-2026 period across its three highest-emitting sectors: thermal power, steel, and cement.
Under the cap-and-trade system, companies that exceed their allocated emissions quotas must purchase additional allowances from firms with surplus capacity, or use eligible carbon credits to offset excess emissions, with credits permitted to cover up to 30% of a company’s quota.
Nguyen Anh Phong, the exchange’s chairman, said at the launch ceremony that six securities companies would participate during the market’s pilot phase, according to local business news service The Investor.
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Vietnam’s Department of Climate Change has said 92 companies from carbon-intensive industries will take part, including steelmakers Hoa Phat and Formosa, Vietnam Electricity, PV Power, and cement producer Vicem, as reported by The Investor.
Vietnam plans to run the exchange on a pilot basis through 2028, with trading fees waived for participants during that period, before transitioning to a full-fledged carbon market in 2029.
The exchange forms part of the country’s broader strategy to introduce market-based mechanisms for reducing emissions from its most carbon-intensive industries.
Read more: Vietnam Greenlights Additional Transfer Of One Million Carbon Credits To World Bank
