• Vietnam has approved a bilateral framework allowing eligible carbon credits to be transferred to Singapore under Article 6 of the Paris Agreement.  

• Vietnamese businesses and project developers may develop eligible emissions-reduction projects for international crediting, subject to forthcoming approval rules and methodologies.  

• The agreement creates a legal pathway for cross-border carbon transactions, while strengthening climate cooperation between Vietnam and Singapore.  

The Vietnamese government has approved the Implementation Agreement with Singapore through Resolution 235/NQ-CP, establishing a legal framework for international carbon credit transfers. Vietnam and Singapore originally signed the agreement in September 2025. 

Under the framework, eligible emissions-reduction projects developed in Vietnam could generate carbon credits that may be authorized and transferred to Singapore, subject to applicable rules, methodologies, monitoring and verification requirements. 

For Vietnamese businesses, this could open greater access to international carbon markets and climate finance, potentially supporting investment in domestic decarbonization projects. 

However, important implementation details are still pending. Vietnam is expected to establish the eligible project types, approval procedures and methodologies that developers must follow. These rules will be critical in determining project eligibility, credit quality and investor confidence. 

The framework also highlights the importance of robust carbon accounting, authorization and tracking systems to prevent double counting and ensure environmental integrity under Article 6. 

For Singapore, the agreement provides another government-backed channel for accessing eligible international carbon credits and expands its network of bilateral carbon market partnerships. 

Vietnam’s approval marks an important step—but the real impact will depend on how the framework is implemented. Clear methodologies, transparent approval processes and credible MRV systems could help unlock private investment and strengthen Southeast Asia’s emerging role in international Article 6 carbon markets.