The Net Zero Roadmap for Vietnamese SMEs: An Implementation Map for 2026–2050
Net Zero is not a distant destination. A guide for SMEs to build a practical emissions-reduction roadmap aligned with Vietnam's commitments.
December 15, 2025 · 16 phút
Photo: Pixabay / Pexels
Quick summary
Vietnam committed to Net Zero by 2050 at COP26. Decree 06/2022 requires large emitting facilities to conduct GHG inventories from 2024, expanding to SMEs from 2027. The Net Zero roadmap for SMEs comprises four phases: (1) Baseline & commitment 2026–2027, (2) Reduce emissions by 30–40% 2028–2035, (3) Deep transition 2036–2045, (4) Neutralize the remainder through high-quality offsets 2046–2050.
Vietnam and the Net Zero 2050 commitment
At COP26 (Glasgow, 2021), Vietnam's Prime Minister committed to bringing net emissions to zero by 2050. The commitment was reinforced at COP27 and COP28, with the JETP (Just Energy Transition Partnership) financing package of USD 15.5 billion from the G7 and partners. To implement it, Vietnam has issued:
- Decree 06/2022/NĐ-CP governing GHG emissions reduction and ozone layer protection.
- Decision 01/2022/QĐ-TTg listing the facilities required to conduct emissions inventories.
- Decision 888/QĐ-TTg setting out tasks to implement the COP26 commitment.
- Nationally Determined Contribution (NDC) 2022: a 15.8% reduction in emissions versus BAU (unconditional) and 43.5% with international support by 2030.
Why do SMEs need a Net Zero roadmap now?
Currently, 1,912 large emitting facilities must conduct GHG inventories under Decision 01. It is expected that from 2027 the list will expand down to a lower emissions threshold, bringing many manufacturing SMEs into the mandatory scope. At the same time, the EU's CBAM begins applying a carbon border tax from 2026 for six sectors (steel, aluminium, cement, fertilizers, electricity, hydrogen) — and is expected to expand after 2030.
In practice, any SME in an export supply chain has already been asked by its customers to report Scope 3 emissions. Without a Net Zero roadmap, Vietnamese SMEs will lose their competitive edge within the next 3–5 years.
The four phases of the Net Zero roadmap for SMEs
Phase 1 (2026–2027): Baseline & Commitment
- Conduct a base-year GHG emissions inventory (ISO 14064-1) for Scope 1 and Scope 2.
- Carry out a preliminary Scope 3 survey with the 3–5 largest suppliers.
- Publicly commit to emissions reductions under the SBTi (Science Based Targets initiative).
- Establish a system for periodic data collection.
Phase 2 (2028–2035): Reduce emissions by 30–40%
- Deploy quick-payback solutions: LED, inverters, energy management systems, building envelope upgrades.
- Install rooftop solar power — on average reducing Scope 2 emissions by 20–35%.
- Optimize logistics and gradually shift to electric vehicles as the infrastructure allows.
- Sign green power purchase agreements (DPPA/RE100) once the mechanisms are fully operational.
Phase 3 (2036–2045): Deep transition
- Replace fossil-fuel combustion technology with electrification and green hydrogen where feasible.
- Redesign products according to low-carbon and circular-economy principles.
- Build a green supply chain — selecting suppliers based on emissions criteria.
- Integrate climate reporting into strategic investment decisions.
Phase 4 (2046–2050): Neutralize the remainder
- Residual emissions are offset through high-quality offsets — afforestation, carbon capture, community projects certified by Verra or Gold Standard.
- Invest in carbon removal technologies (DAC, BECCS) where suited to the sector.
SBTi target-setting method for SMEs
The Science Based Targets initiative (SBTi) has a simplified SME Target Setting program for businesses with fewer than 500 employees: a commitment to reduce absolute Scope 1 & 2 emissions by 42% by 2030, and to measure & report Scope 3 emissions. The registration fee is just USD 1,250, valid for 5 years. This is a standard recognized by international brands.
Priority technologies by sector
| Sector | Priority technologies |
|---|---|
| Textiles — footwear | Electric boilers in place of coal/gas combustion; water & chemical recovery and recirculation; switch to recycled fibers |
| Food — beverages | Biogas from wastewater and sludge; optimized refrigeration and HFC-free refrigerants; recycled packaging, reduced plastic |
| Mechanical engineering — manufacturing | High-efficiency IE4/IE5 motors; reuse of metal chips, recirculation of cutting oil |
Supporting tools and partners
| Tool / partner | Role |
|---|---|
| GHG Protocol + ISO 14064-1 | The most widely used emissions inventory standards |
| CDP (Carbon Disclosure Project) | A platform for disclosing emissions data |
| JETP support fund | Financing the energy transition for Vietnamese SMEs |
| GIZ, JICA, KOICA | Technical assistance programs for manufacturing SMEs |
GROW and the Net Zero SME Vietnam program
GROW is currently working alongside 120 SMEs in the "Net Zero SME 2035" program — supporting emissions inventories, building SBTi targets, and tracking progress on a regular basis. Through the Green Advisory and Training pillars, businesses receive expert consulting, an ESG Officer course, and connections with international technical partners.
Read more: ESG for SMEs · Green investment funds.
Frequently asked questions
How does Net Zero differ from carbon neutral?
Carbon neutral focuses on CO₂ and allows almost unlimited offsetting. Net Zero covers all greenhouse gases and requires deep emissions reductions first, offsetting only the residual that cannot be eliminated. Net Zero is the standard recognized by the SBTi and the UNFCCC.
Will SMEs be penalized if they do not pursue Net Zero?
There are no direct penalties yet, but emitting facilities within the inventory scope must submit reports and participate in the domestic carbon market from 2028. Non-compliance will result in administrative penalties. In addition, losing export customers is a far greater economic consequence.
Can I buy carbon credits to reach Net Zero?
Yes, but only for the residual portion (typically under 10%). Buying credits without reducing internal emissions is considered greenwashing. Choose high-quality credits (Verra, Gold Standard) and prioritize domestic projects to increase real contribution.
What are Scope 1, 2, and 3?
Scope 1 is direct emissions from fuel combustion in operations the business runs. Scope 2 is indirect emissions from purchased electricity. Scope 3 is other indirect emissions across the value chain — from suppliers, transport, product use, and disposal. SMEs should start with Scope 1–2 before expanding to Scope 3.
When will Vietnam's carbon market become operational?
Under Decree 06/2022, Vietnam's carbon market began a pilot phase from 2025 and becomes officially operational from 2028. Businesses within the mandatory scope will be allocated emissions quotas and can trade credits on the exchange.