Date of publication: 23/01/2026
Category: Policy & Legal Affairs / Transportation
Prepared by: ESG Expert Team – Carbon Credit Viet Nam Joint Stock Company
From 01/01/2026, Vietnam’s aviation industry has officially entered a new era as the Civil Aviation Authority of Vietnam (CAAV) registered to join Phase 1 of CORSIA (the Carbon Offsetting and Reduction Scheme for International Aviation).
This decision means that international flights departing from Vietnam will no longer enjoy “free emissions”. Domestic carriers (Vietnam Airlines, Vietjet Air, Bamboo Airways) are required to track their CO₂ emissions and purchase carbon credits to offset emissions exceeding the baseline. This is a direct cost pressure, projected to affect airfares and air freight rates in the coming period.
1. CONTEXT: WHAT IS CORSIA AND WHY IS VIETNAM JOINING?
CORSIA is a global mechanism established by the International Civil Aviation Organization (ICAO) with the goal of Carbon Neutral Growth from 2020.
- How it works: Airlines must offset CO₂ emissions exceeding 2019 emission levels (adjusted to 85% of 2019 levels for the 2024-2035 period).
- Why now? The 2021-2023 period was voluntary. From 2027 it becomes mandatory for most countries. Vietnam’s proactive participation from 2026 demonstrates a strong commitment to Net Zero, while giving domestic carriers a “practice run” before the rules become more stringent.
2. THE FINANCIAL BURDEN ON VIETNAMESE AIRLINES
Joining CORSIA poses a thorny operating cost (OPEX) problem for aviation industry CEOs:
2.1. The cost of purchasing Carbon Credits
Airlines must purchase credits from the voluntary market to offset their emissions. However, ICAO imposes very strict rules on which credits are accepted (CORSIA Eligible Emissions Units).
- Forecast: As aviation demand recovers strongly after the economic downturn, emissions will far exceed the 2019 baseline.
- Impact: With high-quality carbon credit prices (such as Gold Standard or Verra) ranging from $10 – $20/tonne, compliance costs could reach tens of millions of USD per year for a large-scale airline.
2.2. Pressure to invest in new fleets
To reduce the number of credits to be purchased, the best approach is to cut emissions directly. This forces carriers to accelerate the replacement of older aircraft (over 15 years old) with new-generation models (such as the A321neo and B787-10) that are 15-20% more fuel-efficient. This is an enormous CAPEX (capital expenditure) burden.
3. OPPORTUNITY FOR THE SUSTAINABLE AVIATION FUEL (SAF) INDUSTRY
Within “danger” lies “opportunity”. CORSIA is precisely the driving force behind the Sustainable Aviation Fuel (SAF) market.
- Incentive mechanism: ICAO allows airlines that use SAF to reduce their carbon credit purchase obligations.
- Vietnam’s potential: Vietnam has abundant biomass feedstock (pangasius fat, used cooking oil, agricultural by-products) for SAF production.
- In practice: Petrolimex Aviation and its partners are studying the construction of the first SAF plant. If successful, Vietnam would not only achieve green fuel self-sufficiency but could also become a regional SAF supply hub, turning compliance costs into export revenue.
4. IMPACT ON IMPORT-EXPORT BUSINESSES (LOGISTICS)
It is not only airlines that are affected; businesses using air transport services (especially for electronics, components and fresh seafood) will also feel the ripple effects:
- Rising freight rates: Airlines/forwarders may apply a “Carbon Surcharge” to air freight rates to offset CORSIA costs.
- Scope 3 reporting requirements: Cargo owners (such as Samsung, Apple, Nike) will require carriers to provide emissions data for each shipment so they can calculate their Scope 3 emissions. Vietnamese logistics businesses need to upgrade their systems to meet these data requirements.
5. STRATEGIC RECOMMENDATIONS
For Airlines:
- Carbon Hedging strategy: Buy Carbon Futures contracts in advance to lock in prices and avoid the risk of credit prices spiking at the end of the compliance period (2027).
- SAF development partnerships: Sign off-take agreements with domestic SAF producers to secure long-term supply.
For Logistics Businesses & Cargo Owners:
- Multimodal optimization: Consider shifting a portion of cargo from air to sea (Sea-Air) for less time-sensitive orders to reduce carbon costs.
- Transparent negotiations: Require airlines/forwarders to itemize the carbon surcharge in quotations for easier control and reporting.
6. CONCLUSION
Joining CORSIA from 2026 is an affirmation that Vietnam’s aviation industry is ready to integrate into the world’s “green rules of the game”. The skies are no longer a place for free emissions.
In the short term, this is a cost challenge. But in the long term, it will filter the market, retaining those airlines with effective management capabilities and modern, environmentally friendly fleets.
About us: This report was prepared by the ESG Strategy & Policy Team of Carbon Credit Viet Nam Joint Stock Company. We provide carbon footprint calculation solutions for the logistics sector and strategic advisory on CORSIA carbon credit procurement.
