Vietnam hands domestic carbon credit approvals and issuance to provinces under new decree
By Article 6 Network
Under a new decree, Vietnam will transfer responsibility for approving domestic carbon credit projects and issuing credits to provincial authorities as it establishes its national carbon market. Decentralising approvals could speed up project registration. It also raises questions about consistency and coordination with the central government’s control over international transfers under Article 6.
The latest decree gives Vietnam’s provincial authorities the power to approve domestic carbon credit projects and issue the resulting credits, as part of building a national carbon market.
The decree adds to a fast-growing body of carbon market law in 2026. Decree 112/2026/ND-CP, issued on 1 April and in force since 19 May, governs international transfers of mitigation outcomes and carbon credits through three channels: Article 6.2 cooperative approaches, the Article 6.4 mechanism, and independent carbon standards. Under Decree 112, the Ministry of Agriculture and Environment issues Letters of Authorisation for international transfers, and maximum export ratios apply to credits subject to corresponding adjustments. Where transfers do not require corresponding adjustments, projects may export up to 90% of their credits and use the rest in the domestic market. The decree also states that international trading must protect national interests and prioritise achieving Vietnam’s NDC.
Other recent instruments include Decree 29/2026/ND-CP, which introduced a national carbon credit registry, and Decree 180/2026/ND-CP on forest carbon sequestration and storage services, published alongside a draft National Standard for Forest Carbon Credits. As of August 2025, more than 30 million credits from 158 voluntary market projects had been issued under Vietnam’s national registry, with projections of around 70 million by 2030. Vietnam is an active Article 6 host, with JCM rules recently revised with Japan and an Implementation Agreement with Singapore.
Signals to watch
- Faster domestic pipeline: Provincial approval could shorten registration times and bring more projects into Vietnam’s domestic market, particularly in forestry, agriculture and renewable energy, where provincial authorities already manage land and resources.
- Consistency risk across 34 provinces: Decentralisation could lead to uneven application of methodologies, MRV standards and safeguards between provinces. Investors and buyers should watch for central guidance, standard templates and oversight to ensure consistent quality.
- Clear split between domestic and international roles: International authorisation and corresponding adjustments appear to remain with the central ministry under Decree 112. Developers targeting Article 6 buyers will need provincial approval for domestic issuance plus central authorisation for export. Watch how the two processes connect.
- Double-counting safeguards: With provinces issuing credits and the centre authorising exports, the national registry must track every credit’s status reliably. Buyers will expect clear records showing which credits are authorised and correspondingly adjusted and which stay in the domestic market.
- Vietnam as a major ITMO supplier: With a large voluntary credit stock, an active JCM partnership and a Singapore agreement, Vietnam could become one of Asia’s largest ITMO sources. Efficient domestic approvals combined with disciplined central authorisation would strengthen that position.
Sources:
- VnEconomy – Enabling market entry for carbon credits
- Vietstock – Decree 112 sets legal framework for Vietnam’s carbon market participation
- Duane Morris – Vietnam Decree 112/2026 on international carbon credit transfers
- VCCI – Legal foundation for a carbon market in Vietnam
- Vietnam News – New decree lays legal foundation for forest carbon market
- VietnamNet – Vietnam finalises legal foundation for domestic carbon market
