Vietnam to Reduce Import Quota for Ozone-Depleting Substances

Vietnam cuts its HCFC import quota by 50 percent for 2025, marking a major policy step in line with global climate agreements and net-zero goals.

On April 18, 2025, the Ministry of Agriculture and Environment of Vietnam issued a directive halving the country’s import quota for hydrochlorofluorocarbons (HCFCs), a class of ozone-depleting substances (ODS), from 2,600 tons in 2024 to 1,300 tons in 2025. This is the first major enforcement step in Vietnam’s multi-decade roadmap to phase out harmful refrigerants under the Montreal Protocol and its national commitments to climate change mitigation.

The reduction applies primarily to HCFC-22, which is widely used in air conditioning systems, refrigeration equipment, foam insulation, and seafood processing. The measure is not only regulatory but also a strategic response aligned with Vietnam’s pledge to achieve net-zero emissions by 2050, made at the COP26 climate summit.

Legal framework and implementation plan

Vietnam’s quota reduction policy is part of a comprehensive legal and environmental framework governed by:

• Decree No. 06/2022/ND-CP: Lays out emission reduction and ozone protection responsibilities for regulated facilities;
• Decision No. 01/2022/QD-TTg: Lists facilities required to inventory greenhouse gas emissions; and
• Decision No. 888/QD-TTg: Approves the national action plan to implement COP26 outcomes.

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These regulations work together to establish phased reduction targets for ODS and high-global-warming-potential gases. According to the Ministry, the HCFC import quota will remain at 1,300 tons annually from 2025 to 2029, representing a 67.5 percent reduction compared to baseline consumption levels. Starting 2030, the import ceiling will drop to 100 tons per year, and by 2040, all imports of other HCFCs will cease.

Importers are required to report their usage annually by January 15, in compliance with the quota allocation mechanism under Decree No. 06. Enterprises must declare exact volumes per substance and adhere to licensing procedures and substance-specific handling regulations.

The phased quota system mirrors international obligations and aims to support both environmental goals and sectoral transition planning.

Alignment with national climate goals

The HCFC quota policy supports Vietnam’s broader climate objectives. As outlined in the country’s Second Updated Nationally Determined Contribution (NDC) submitted in November 2022, Vietnam aims to reduce emissions by 43.5 percent by 2030, conditional on international support. It also targets a 30 percent reduction in methane emissions by 2030.

According to Vietnam’s Ministry of Natural Resources and Environment, full implementation of the HCFC and HFC quotas is expected to reduce more than 11 million tons of CO2-equivalent emissions by 2045. These reductions will contribute significantly to the targets under the National Climate Change Strategy to 2050 and the Vietnamese Net Zero Commitment.

Complementary actions include:

• Development of a domestic carbon market;
• Industry-level emission reporting and inventory; and
• Support for climate-smart technologies and low-emission practices.

Implications for businesses

Enterprises that rely on refrigeration and air-conditioning systems, especially in the seafood, logistics, and food processing sectors, must take proactive steps to manage their consumption of HCFCs. Importers are required not only to comply with annual quotas but also to ensure safe handling and reporting protocols.

Businesses are encouraged to explore green alternatives such as hydrofluoroolefins (HFOs) and other low-global-warming-potential refrigerants. These alternatives may become increasingly cost-effective and necessary as quotas tighten.

According to Dr. Ha Quang Anh, Director of the Low Carbon Development Center, businesses that understand the emission footprint of their production will be better positioned for investor confidence and regulatory compliance. Planning resource allocation for greenhouse gas inventories and mitigation measures is now a critical operational concern.

Read more: Vietnam’s Carbon Market Development: Objectives and Implementation Plan Under Decision 232

HFC quotas and long-term outlook

Though HCFCs are the immediate focus, Vietnam’s policy roadmap also includes reductions in hydrofluorocarbons (HFCs), another class of synthetic refrigerants with high global warming potential. By 2045, HFC imports will be capped at volumes equivalent to 2.7 million tons of CO2 emissions, representing an 80 percent reduction from baseline levels.

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For 2025 alone, the total quota for all controlled substances is expected to equate to 13 million tons of CO2 emissions. Authorities will monitor implementation through the National Climate Change Monitoring System established under Decision No. 148/QD-TTg.

These targets underscore the government’s commitment to phased, science-based emissions reductions and signal long-term market changes for all refrigerant-dependent industries.

In brief

Vietnam’s decision to halve its 2025 HCFC import quota represents a pivotal move toward environmental sustainability, regulatory compliance, and international alignment. Supported by multiple decrees and decisions, the plan balances domestic industrial needs with global climate responsibilities.

As businesses prepare for tighter quotas, early investment in green technologies, improved reporting systems, and compliance frameworks will be essential. Companies operating in affected sectors must stay informed on licensing timelines, inventory requirements, and technical upgrades that align with Vietnam’s carbon-neutral trajectory.

Read more: Vietnam’s National Green Growth Strategy: Unpacked

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