Which exchange will enterprises use to trade carbon credits? Can they trade through the Hanoi Stock Exchange (HNX) or via Over-the-Counter (OTC) agreements?

For Vietnam's regulated Emission Trading System (ETS), the Hanoi Stock Exchange (HNX) has been designated as the official platform for organizing and operating the carbon market. The HNX is responsible for developing the necessary infrastructure to meet the technical and professional standards required by regulatory authorities.22

Trading on the ETS will be conducted through a centralized, exchange-based method. This structure requires all participating entities to open a specific custody account for holding and trading either their allocated greenhouse gas emission allowances or their carbon credits. All transactions will be settled automatically by the system, which ensures the simultaneous transfer of the asset (the allowance or credit) and the payment, a process known as delivery versus payment.

Given this mandatory centralized structure, trading through bilateral Over-the-Counter (OTC) agreements will not be permitted for allowances and credits within the official ETS. The requirement for all transactions to pass through the HNX is designed to ensure transparency, price discovery, and regulatory oversight for the compliance market. It is important to note that this centralized model applies specifically to the compliance ETS; the voluntary carbon market may continue to operate with more flexibility, potentially including OTC transactions.

References

22. Vi, T. (2024). Vietnam is about to have a carbon credit trading market. Báo Đấu Thầu. https://baodauthau.vn/viet-nam-sap-co-thi-truong-giao-dich-tin-chi-carbon-post180708.html