Vietnam Decree 112 Opens Carbon Credit Trading: Vingroup Eyes 4.5M Credits

Overview

Vietnam’s Decree 112, effective April 2025, establishes a legal framework for international carbon credit trading. Vingroup (VIC) is leveraging its electric vehicle ecosystem to issue up to 4.5 million carbon credits, while Green Carbon Japan Vietnam expects 500,000 credits from rice farming projects. This regulation opens a new revenue stream for Vietnamese companies and aligns with global carbon markets.

Key Facts

• Decree 112, issued by the Vietnamese government, creates a legal basis for international transfer of greenhouse gas emission reduction results and carbon credits.
• Vingroup plans to issue 1 million carbon credits from gasoline-to-electric motorcycle swaps during 2025-2029.
• Vingroup expects an additional 3.5 million tonnes of CO2 reduction annually from its charging station network.
• Vingroup’s carbon credit projects follow Verra and Gold Standard, enabling international trading.
• Green Carbon Japan Vietnam expects 500,000 carbon credits in 2025 from AWD rice farming on 80,000 hectares across 15 provinces.
• Green Carbon Japan targets markets with ETS or carbon taxes, including Japan, Singapore, South Korea, and Switzerland.
• Expected credit prices range from $15 to $30 per credit, depending on the market.

What Happened

During a seminar on promoting international carbon credit cooperation on July 23, 2025, Mr. Tran Ky Anh, Carbon Credit Trading Manager at Vingroup, detailed the conglomerate’s readiness to participate in the carbon market. Vingroup has built data infrastructure from its initial projects, including smart meters at V-Green charging stations connected to a centralized management platform. This real-time data supports MRV (Measurement, Reporting, and Verification) processes under international carbon credit standards.

Green Carbon Japan Vietnam, through its business development manager Mr. Phan Tien Thanh, stated that its 500,000 credits are pending regulatory approval for sale to international markets. The company focuses on countries with bilateral agreements with Vietnam, such as Japan and Singapore, and expects prices of $15-30 per credit.

Market Context

Vingroup (VIC) closed at VND 214,000 on July 23, 2026, on HOSE. The stock has been supported by the conglomerate’s expansion into renewable energy and high-speed rail infrastructure, alongside its core real estate and automotive businesses. The carbon credit initiative adds a potential recurring revenue stream, though monetization depends on regulatory approvals and market demand. VFS (VinFast) closed at VND 9,900 on the same date, reflecting ongoing challenges in the EV market.

Strategic Significance

Decree 112 positions Vietnam as a participant in the global carbon credit market, benefiting companies with verifiable emission reductions. Vingroup’s integrated ecosystem—spanning EVs (VinFast), charging stations (V-Green), ride-hailing (Green SM), and electric buses (Vinbus)—provides a scalable source of credits. This aligns with the group’s pivot toward green energy and infrastructure, potentially enhancing its ESG profile and attracting foreign investment. For Green Carbon Japan, the decree unlocks access to premium markets, though execution risk remains in scaling MRV systems across 80,000 hectares.

What to Watch

• Regulatory approval of Vingroup’s carbon credit projects under Verra and Gold Standard.
• First international sale of carbon credits by a Vietnamese entity, expected within 12 months.
• Green Carbon Japan’s ability to secure buyers at $15-30 per credit in Japan or Singapore.
• Expansion of bilateral agreements between Vietnam and other countries for carbon credit transfers.
• Q3 2025 earnings reports from VIC and VFS for updates on carbon credit revenue recognition.