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Effectiveness of Carbon Tax with the Carbon Market to respond to Vietnam’s Global Climate Change
Phan Phuong Nam*1, Pham Huy Hoang2, Nguyen Xuan Bang3
1Faculty of Commercial Law, Ho Chi Minh City University of Law, Ho Chi Minh City, Vietnam.
Email: phanphuongnam@gmail.com | ORCID: https://orcid.org/0009-0009-6293-0899
2Faculty ofs Economic Law, Ho Chi Minh City University of Law, Ho Chi Minh City, Vietnam.
Email: phamhuyhoang090913@gmail.com | ORCID: https://orcid.org/0009-0005-7076-6604
3Faculty of Law, Hutech University, Ho Chi Minh City, Vietnam. Email: nguyenxuanbangdalat1979@gmail.com
ORCID: https://orcid.org/0009-0006-0205-2367
*Corresponding author
Grassroots Journal of Natural Resources, 8(2): 448-466. Doi: https://doi.org/10.33002/nr2581.6853.080221
Received: 03 July 2025
Reviewed: 21 July 2025
Provisionally Accepted: 25 July 2025
Revised: 29 July 2025
Finally Accepted: 14 August 2025
Published: 25 August 2025
Vietnam is actively addressing climate change, aiming to achieve net-zero emissions by 2050. A carbon market has already been established in compliance with Decree No. 06/2022/ND-CP and the Law on Environmental Protection of 2020, with operations anticipated to begin in 2028 or 2029. However, the current legal system does not specifically address carbon taxation. Nevertheless, a carbon tax is a financial tool that would help Vietnam meet its obligations abroad, including those outlined in the 2015 Paris Agreement. To date, while Vietnam may have achieved certain successes in addressing climate change, the current legal provisions still present challenges concerning the pricing mechanism, the monitoring, reporting, and verification (MRV) system, and the exchange of information across sectors. Adding a carbon tax to the Law on Environmental Protection Tax of 2010 and making the rules about who has to pay taxes and how much clearer could help solve these problems. Additionally, to set a fair tax rate and a strong MRV system, there needs to be better coordination between sectors, more support for small and medium-sized businesses, and the use of best practices from other countries. Vietnam wants to have net-zero emissions by 2050, and the carbon market and a carbon tax working together would make that goal easier to reach. This method would also provide Vietnam a stronger voice in climate talks around the world.
Carbon market; Carbon tax; Net Zero 2050; Legal framework; Climate change
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Nam, P.P., Hoang, P.H. and Bang, N.X. (2025). Effectiveness of Carbon Tax with the Carbon Market to respond to Vietnam’s Global Climate Change. Grassroots Journal of Natural Resources, 8(2): 448-466. Doi: https://doi.org/10.33002/nr2581.6853.080221
Nam, P.P., Hoang, P.H., & Bang, N.X. (2025). Effectiveness of Carbon Tax with the Carbon Market to respond to Vietnam’s Global Climate Change. Grassroots Journal of Natural Resources, 8(2), 448-466. https://doi.org/10.33002/nr2581.6853.080221
Nam P. P., Hoang P. H., Bang N. X. Effectiveness of Carbon Tax with the Carbon Market to respond to Vietnam’s Global Climate Change. Grassroots Journal of Natural Resources, 2025, 8 (2),448-466. https://doi.org/10.33002/nr2581.6853.080221
Nam, Phan Phuong, Hoang, Pham Huy and Bang, Nguyen Xuan. 2025. “Effectiveness of Carbon Tax with the Carbon Market to respond to Vietnam’s Global Climate Change”. Grassroots Journal of Natural Resources, 8 no. 2: 448-466. https://doi.org/10.33002/nr2581.6853.080221
Nam, Phan Phuong, Pham Huy Hoang and Nguyen Xuan Bang. 2025. “Effectiveness of Carbon Tax with the Carbon Market to respond to Vietnam’s Global Climate Change”. Grassroots Journal of Natural Resources, 8 (2): 448-466. https://doi.org/10.33002/nr2581.6853.080221
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