Vietnam is facing significant challenges in meeting its climate change commitments, particularly in the area of greenhouse gas emissions, as reported by Vietnam News.

Despite the government's ambitious goal of achieving carbon neutrality by 2050, a recent government decree mandates that only 2,166 businesses are required to report greenhouse gas emissions by March 2025 and develop reduction plans.

However, according to Dr. Nguyễn Đình Thọ, director of the Institute of Strategy and Policy on Natural Resources and Environment, only about 10% of these businesses are currently prepared to comply with the reporting requirements. "These businesses are primarily in sectors like steel production, cement production, and thermal power generation, which the Ministry of Natural Resources and Environment is prioritising for meeting the deadline," Thọ said.

The year 2025 is a critical juncture for Vietnam as countries are expected to submit updated emissions reduction targets, known as Nationally Determined Contributions (NDCs). Vietnam's first NDC, submitted in 2015, pledged to reduce emissions by 27% with international support and 9% without. The 2022 update increased this commitment to 43.5% with international support and 15.85% without. "In 2025, when the next commitment update is due, it will be a significant challenge for Vietnam," Thọ said.

The largest emitting sector in Vietnam is currently the food production system, accounting for 33% of emissions due to packaging production, plastic use, and traditional agricultural practices. Other major emitting sectors include construction, transport, and textile manufacturing. While government agencies have implemented various measures to reduce emissions, such as promoting green buildings, encouraging public transportation, and supporting circular economy initiatives, challenges remain.

Carbon absorption projects, particularly in agriculture, have not received as much support as technology-based emission reduction projects. According to Decree 06 of 2022, businesses can use carbon credits to offset emissions, but only up to 10% of their total allocated emissions. This underscores the importance of focusing on technological advancements and clean energy solutions to achieve substantial emission reductions.