This was agreed upon in Vietnam on August 7 by Deputy Minister of Agriculture and Environment (MAE), Le Cong Thanh, and Aldo de Luca, Chargé d’Affaires of Switzerland.
Vietnam is establishing its Emissions Trading Scheme (ETS) this year, aligning with its commitment to achieve net-zero emissions by 2050.
De Luca emphasised a need for a clear timeline and encouraged private sector engagement “as a foundation for deeper collaboration”.
Both sides cited progress from recent workshops and technical exchanges and agreed to set a concrete roadmap before formal talks in September.
Le also stressed that Vietnam would require continuous legal reforms, particularly in environmental governance.
For instance, its revised Law on Environmental Protection and decrees on carbon credits were being updated to align with international standards.
“We are impressed by Vietnam’s determination and swift action. This is a strong source of inspiration for Switzerland to expand bilateral cooperation in green investment, technology transfer, and shared benefits,” said de Luca.
With nearly 10 million hectares of farmland, Vietnam’s agriculture sector holds untapped potential to generate carbon credits.
Vietnamese company Lam Son Sugar, which considers itself a pioneer” in Vietnam’s fledging carbon credit market has developed over 500-hactares to an organic, low-emission sugarcane farming model
Near the start of this year, the company has partnered with international organisations to launch carbon credit projects.
Now it is seeking global certification for its farming practices so it can sell carbon credits that would directly benefit farmers in its supply chain.
Green investments needed
As Vietnam was pursuing sustainable development, the deputy minister highlightedthe importance of Swiss investment in its transition, given its strengths in technology and expertise in sustainability.
“We hope Switzerland will expand investment in high-tech, low-emission and environmentally friendly sectors,” said Le.
He elaborated that Switzerland’s experience in piloting projects in green transport and low-emission industries could provide valuable models for Vietnam.
Vietnam is already working on the Joint Crediting Mechanism (JCM) with Japan and the Just Energy Transition Partnership (JETP) with G7 countries.
These provide a base for cooperation with Switzerland as it refines environmental laws and its carbon market, said Le.
De Luca reaffirmed Switzerland’s readiness to collaborate with Vietnam under Article 6 of the Paris Agreement on climate change.
Recently, Acting Minister Tran Duc Thang met with Pauline Tamesis, United Nations (UN) Resident Coordinator in Vietnam to discuss the UN’s backing in its green transition.
It urged UN support in green finance, technology transfer, private investment mobilisation and governance capacity building.
