Discussion at Vietnamese Business Gathering: Methodologies for Transfers of Low-Emission Technologies
In the ongoing pursuit of green growth and GHG emission reduction, recent developments and discussions around Vietnam’s strategies in the business sector have underscored both progress and ongoing challenges in low-carbon technology transfer mechanisms.
On the 12th of January, a significant business forum took place in Hanoi, organised by the Ministry of Natural Resources and Environment of Vietnam. The event aimed to raise awareness of the business sector's role in the national green growth plan and GHG emission reduction, with a focus on technology development and transfer.
## Business Sector Engagement
The business sector in Vietnam is recognised as a key player in driving green growth and GHG reduction. The carbon credit market is positioned as a decisive economic tool to incentivise emissions mitigation, operating on the “polluter pays” principle. This approach encourages private sector investment in low-carbon technologies by making emissions allowances tradable assets, thus providing financial incentives for companies to adopt cleaner production methods.
## Technology Transfer Mechanisms and International Cooperation
Vietnam is actively engaging in international technology transfer and climate finance mechanisms. The forum promoted the Climate Technology Center and Network (CTCN) under the UNFCCC to the business sector, emphasising its role in supporting the transfer of low-carbon technologies. Ms. Parimita Mohanty, CTCN coordinator in the Asia-Pacific, presented updated information on the CTCN at the forum.
International partnerships, such as the Vietnam-Japan cooperation under the Joint Crediting Mechanism (JCM), are another example of how technology transfer and international collaboration can mobilise climate finance and support Vietnam’s NDC and net-zero ambitions.
## Current Framework and Legal Developments
Vietnam has made significant strides in institutionalising a legal and regulatory environment for carbon trading and low-carbon technology integration. The government has issued Decree 119/2025/NĐ-CP, which amends previous legislation on GHG emissions and ozone layer protection. This new decree provides a comprehensive legal basis for emissions quotas, carbon credit trading (both domestic and international), and the operation of a national digital tracking system for quotas and emissions.
## Challenges and Next Steps
While the regulatory and institutional groundwork is solid, challenges remain in enforcement, data transparency, and industrial compliance. The effectiveness of low-carbon technology transfer mechanisms in Vietnam’s business sector will depend on the government’s ability to close gaps between policy and practice, and on the readiness of market infrastructure and stakeholder engagement.
The Institute of Global Environmental Strategy (IGES) was a partner in the forum, contributing to the ongoing discourse on Vietnam’s green growth strategy and the role of the business sector in achieving GHG emission reduction goals as outlined in the INDC.
As Vietnam moves forward, the full potential of low-carbon technology transfer mechanisms will be realised through sustained efforts to address institutional and practical barriers. The government's aim is to launch a fully operational carbon market by 2029, with expanded compliance and reporting from 2027–2028.
- The business forum in Hanoi, organized by the Ministry of Natural Resources and Environment, highlighted the importance of financing in motivating companies towards environmental science, such as the carbon credit market, which operates on the "polluter pays" principle and encourages business investment in low-carbon technology in the context of climate-change.
- Recognizing the role of international cooperation in Vietnam's efforts to combat climate-change, the event promoted the Climate Technology Center and Network (CTCN) to the business sector, underscoring the potential of international collaborations, like the Vietnam-Japan partnership under the Joint Crediting Mechanism (JCM), in facilitating technology transfer and climate finance, which are crucial for Vietnam's NDC and net-zero ambitions in environmental-science.
