Executive summary

Viet Nam is laying the foundation to participate in the Voluntary Carbon Market (VCM) through nature-based projects, including mangrove restoration. While no mangrove projects are currently registered, early engagement is emerging, with one project under Verra’s standard. This signals growing interest alongside a broader government push to build a domestic carbon market and align with international mechanisms. Key policies, including the Environmental Protection Law (2020), Decree 06/2022, and the amended Decree 119/2025, reflect this direction. At the same time, a draft decree on forest and forest-based carbon credits aims to clarify how projects are registered, monitored, and financed, while ensuring that national climate commitments are met before credits are sold internationally.

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As this framework takes shape, Viet Nam is also defining how projects are authorized and tracked. Developers can begin activities without prior approval, but must secure a Letter of Authorization to sell credits abroad, confirming alignment with national climate goals. A national registry system, expected by 2028, will play a central role in tracking emissions reductions and preventing double-counting. In parallel, emerging rules on carbon transactions require contractual agreements to guide how revenues are shared among the State, forest owners, and local stakeholders. However, the details of this distribution remain unclear, reflecting a broader pattern: consultation with communities is required, but formal free, prior, and informed consent is not yet embedded in law, although it has been applied voluntarily in REDD+ programs.

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At the project level, Viet Nam shows greater clarity in technical requirements than in rights and governance. Robust MRV systems are already in place, requiring developers to follow recognized standards and complete verification before credits can be issued or transferred. In contrast, land tenure and carbon rights remain less defined. The State owns all land and forest resources, including mangroves, and allocates long-term use rights to organizations, households, and communities. While these rights enable participation in forest management, they do not confer ownership. Carbon rights are not yet formally defined, though existing legislation suggests they may eventually be linked to forest-use rights, opening the door for benefit-sharing. Decree 119/2025 establishes a national registry to track ownership of emissions and credits, but key legal definitions and transfer mechanisms remain pending.

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Overall, Viet Nam has ambiguous enabling conditions for blue carbon projects. Viet Nam is moving decisively toward a structured carbon market, but critical elements, particularly around carbon rights, benefit-sharing, and community participation, are still evolving. This creates uncertainty for investors and project developers in the short term. At the same time, it highlights a clear opportunity: with the right safeguards and clarity, Viet Nam is well-positioned to build a credible and inclusive blue carbon market grounded in fairness, integrity, and long-term partnerships.

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