Recent global efforts to combat climate change have accelerated, with nations adopting carbon strategies such as carbon taxes and emission trading system (ETS) to support their net-zero commitments. These initiatives enable governments to enforce mitigation while maintaining their dual goal of fostering economic growth. Vietnam, a developing country, has emerged as a proactive participant by launching a national ETS, drawing from international best practices and domestic geographical advantages. This article examines the process and challenges involved in designing and implementing an ETS in Vietnam, exploring the necessary policy frameworks, institutional structures, and market mechanisms. It highlights key considerations such as the selection of sectors and entities to be covered, the allocation of emission allowances, and the establishment of new market management solutions. This article concludes with strategic recommendations to support the development of a successful and sustainable ETS mechanism in developing country like Vietnam.

I. Introduction
II. Vietnam’s Carbon Market Policy
III. Framework for the National Emissions TradingSystem in Vietnam: Cap and Trade
    A. Scope and Coverage
    B. Setting Allowance Limits and Allocations
IV. Evaluation of Vietnam’s ETS Legal Framework andFuture Prospects
V. Conclusion

• Nguyen Thi Huyen(Lecturer of Law Faculty at Foreign Trade University (Vietnam). LL.B./LL.M. (Hanoi Law U.), Ph.D. (Graduate Academy of Social Sciences))
• Nguyen Trang Linh(Paralegal, Midland & Partners. LL.B. (Foreign Trade U.))
• Dao Kim Anh(Lecturer of Law Faculty at Foreign Trade University (Vietnam). LL.B. (Foreign Trade U.), LL.M. (U. Adelaide), Ph.D. (Korea U.)) Corresponding author