In June, Vietnam adopted the new Law on Environmental Protection (“New Law”) that introduces a concrete policy on an emissions trading system and carbon tax that will take effect beginning next year. This new law will require businesses to report a database of greenhouse gas (GHG) every two years and an annual GHG reduction report. The list of required businesses will also be released every two years by the Prime Minister and the Ministry of Natural Resources and Environment Vietnam (MONRE). The New Law will implement a distributed emission quotas to these businesses and other GHG emitters and only allowed them to exceed this limit by joining the carbon market. It also states that businesses that want to reduce or are unable to maximize their emission quotas are authorized to sell, transfer, bid, or lend their GHG quotas or carbon credits in the local or international market. GHG emissions limit and emission quotas will be distributed periodically and annually by MONRE. In addition, the New Law will impose a tax on products and goods that are harmful to the environment depending on the potential environmental impact. The government is currently finalizing the decree of the New Law which is expected to submit for review by September 2021.