• Vietnam has approved a bilateral framework allowing eligible carbon credits to be transferred to Singapore under Article 6 of the Paris Agreement.
• Vietnamese businesses will be able to develop emissions reduction projects for international crediting, subject to future approval rules and methodologies.
• The agreement gives developers a legal route into cross-border carbon markets while strengthening climate cooperation between the two countries.

Vietnam Clears Legal Path for Carbon Credit Transfers

The Vietnamese government has approved an agreement with Singapore that creates a legal framework for international carbon credit transfers under Article 6 of the Paris Agreement.

The government approved the Implementation Agreement through Resolution 235/NQ-CP. It also instructed the Ministry of Foreign Affairs to complete procedures needed for the agreement to enter into force, according to state-run news agency VNA.

Vietnam and Singapore signed the bilateral agreement in September 2025. It is designed to deepen cooperation between the two countries in international carbon markets while supporting their respective climate objectives.

The framework could give Vietnamese project developers greater access to international demand for high-integrity carbon credits. It also provides Singapore with another bilateral channel for sourcing eligible emissions reductions.

Article 6 Framework Opens International Market Access

Under the agreement, Vietnamese companies and other organizations will be able to develop greenhouse gas reduction projects that meet recognized international carbon credit standards.

Eligible credits generated by those projects can then be recognized and transferred to Singapore.

The framework is particularly important because Article 6 transactions require government oversight. Countries must authorize eligible mitigation outcomes before they can be transferred internationally and used toward another country’s climate targets or other approved purposes.

For project developers, the bilateral agreement provides clearer legal foundations for pursuing cross-border carbon transactions. That could improve confidence around project planning, financing and eventual credit sales.

However, several operational details remain outstanding.

Vietnamese authorities have not yet announced which individual project types will qualify. They have also not released the methodologies developers will need to follow.

The government said details covering the approval process for carbon credit projects will be announced later. A list of eligible methodologies is also expected.

Those decisions will be closely watched by project developers and investors assessing whether Vietnam can build a scalable pipeline of Article 6 projects.

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Vietnam Builds Carbon Market Infrastructure

The agreement adds an international component to Vietnam’s broader carbon market development.

For Vietnamese businesses, it creates an avenue for domestic emissions reduction projects to generate credits that can potentially reach international buyers. That could support investment in projects that would otherwise struggle to secure sufficient financing from domestic markets alone.

International recognition may also improve the commercial case for emissions reduction activities in sectors where upfront capital requirements remain high.

Governance will be critical. Article 6 transfers require clear accounting to avoid double counting emissions reductions between participating countries.

Vietnam will therefore need robust authorization, tracking and reporting systems as the framework moves from government approval into implementation.

The methodologies selected by authorities will also influence which sectors attract capital. Rules covering additionality, monitoring and verification will determine both credit quality and investor confidence.

Singapore Expands Bilateral Carbon Cooperation

For Singapore, the agreement creates another government-backed channel for sourcing carbon credits under the Paris Agreement.

The city-state has been building bilateral relationships with countries capable of hosting emissions reduction projects. These arrangements can help companies access internationally transferred mitigation outcomes while operating within government-approved accounting systems.

The Vietnam agreement could broaden that potential supply base.

For investors and corporate buyers, however, the next stage will matter more than the approval itself. Project eligibility rules, methodologies, authorization procedures and credit integrity requirements will determine whether the framework produces meaningful transaction volumes.

Vietnam’s approval gives both governments the legal architecture to move forward. The focus now shifts to implementation.

If Vietnam can establish transparent project approval and carbon accounting systems, the agreement could channel more private capital into domestic decarbonization projects. It would also deepen Southeast Asia’s role in the emerging Article 6 market, where bilateral cooperation is becoming an important bridge between national climate policy and international carbon finance.