Vietnam has officially entered the mandatory implementation phase for greenhouse gas (GHG) inventories and domestic carbon market operations. In the context of increasingly stringent emission requirements globally, carbon management is no longer merely a directional commitment; it is becoming a factor that directly impacts corporate operating costs, competitiveness, and market access.

Particularly, the Government’s issuance of regulations on emission allowance allocation and carbon trading mechanisms marks a significant transition from "encouraging emission reduction" to "mandated emission management with compliance constraints."

Carbon management is no longer merely a directional commitment; it is progressively becoming a factor that directly impacts corporate operating costs, competitiveness, and market access

03 pilot sectors allocated with emission allowances for the 2025-2026 period

According to Decision No. 699/QD-BNNMT dated February 27, 2026, issued by the Ministry of Agriculture and Rural Development, Vietnam has implemented the pilot allocation of greenhouse gas emission allowances for 03 key emitting sectors, including:

• Thermal power: 34 facilities
• Iron and steel: 25 facilities
• Cement: 51 facilities

For detailed list please see here.

Total greenhouse gas emission allowances allocated during the pilot phase:

• Year 2025: 243,082,392 tonnes of CO2e
• Year 2026: 268,391,454 tonnes of CO2e

Pursuant to Decision No. 699/QD-BNNMT dated February 27, 2026, issued by the Ministry of Agriculture and Rural Development, facilities allocated with emission allowances are responsible for surrendering greenhouse gas emission allowances in compliance with Article 19 of Decree No. 06/2022/ND-CP on the reduction of greenhouse gas emissions and protection of the ozone layer, as amended and supplemented by Clause 16, Article 1 of Decree No. 119/2025/ND-CP amending and supplementing certain articles of Decree No. 06/2022/ND-CP.

What should enterprises listed under the greenhouse gas inventory portfolio note?

According to Decision No. 13/2024/QD-TTg dated August 13, 2024, there are currently 2,166 facilities nationwide subject to mandatory greenhouse gas inventories.

Enterprises included in this portfolio are responsible for:

• Conducting periodic greenhouse gas inventories;
• Reporting in accordance with the templates specified in Appendix II of Decree No. 06/2022/ND-CP;
• Developing emission data systems to serve management and reporting purposes;
• Proactively preparing for future emission allowance allocation roadmaps and participation in the carbon market.

In practice, many enterprises currently still face difficulties in:

• Collecting and standardizing emission data;
• Determining appropriate calculation methodologies;
• Controlling data accuracy and data verifiability;
• Meeting transparency requirements under international standards such as ISO 14064, IPCC, and CBAM.

Therefore, building a structured carbon governance system early on will help enterprises mitigate compliance risks, optimize costs, and enhance competitiveness in global supply chains.

Key Legal Framework

The legal framework for greenhouse gas inventories and the carbon market in Vietnam is currently established based on the following vital documents:

• Law on Environmental Protection 2020;
• Decree No. 06/2022/ND-CP on the reduction of greenhouse gas emissions and protection of the ozone layer;
• Decree No. 119/2025/ND-CP amending and supplementing Decree No. 06/2022/ND-CP;
• Decision No. 232/QD-TTg dated January 24, 2025, on the Scheme for carbon market development in Vietnam;
• Decree No. 29/2026/ND-CP dated January 19, 2026, on the Carbon trading exchange;
• Decision No. 263/QD-TTg dated February 09, 2026, on the total pilot emission allowances for the 2025–2026 period;
• Circular No. 11/2026/TT-BNNMT dated February 13, 2026, on the national registry system;
• Decision No. 699/QD-BNNMT dated February 27, 2026, on the allocation of emission allowances for the 03 pilot sectors;
• Decision No. 13/2024/QD-TTg on the list of facilities subject to mandatory greenhouse gas inventories.

Vinacontrol accompanies enterprises in emission governance & carbon compliance

With nearly 70 years of expertise in conformity assessment and environmental consulting, Vinacontrol provides comprehensive solutions to help enterprises build carbon governance capacity and satisfy the increasingly stringent compliance demands of the market.

Vinacontrol is a leading consultancy in the fields of Greenhouse Gas (GHG) and Sustainable Development

Vinacontrol’s solutions include:

• Greenhouse gas inventory in accordance with ISO 14064 and Technology Transfer
• Consulting on emission reduction roadmaps and carbon governance
• Consultation and training on CBAM and emission reporting for export to the EU
• Developing MRV (Measurement – Reporting – Verification) systems
• Validation and verification of emission data for compliance and carbon markets
• ESG consulting and corporate sustainable development governance.

In a landscape where standards on emissions, data transparency, and sustainable development are progressively becoming the "common language" of global trade, proactively establishing carbon governance capabilities not only assists enterprises in fulfilling legal mandates but also forms the foundation for long-term growth and sustainable international integration.