Hanoi / Ho Chi Minh City, 2026 — The year 2026 marks another decisive phase of transformation in Vietnam’s real estate market: “green” is no longer a marketing slogan but is becoming a criterion for financial risk assessment, capital access conditions, and project operation standards. This year’s key trends include: green industrial development, sustainable smart cities, the rise of green buildings and retrofit, the expansion of renewable energy within projects, and the maturation of green finance channels. These shifts come with both supportive evidence and practical warnings from the region.

1. Green Industry — from Industrial Parks to Eco-Industrial Parks (EIP)

Figure 1: Vice Chairman of the Hanoi People’s Committee, Mr. Nguyen Manh Quyen, has just signed Decision No. 6069/QD-UBND approving the Hanoi Industrial Promotion Program for the period 2026–203.
Photo: TTI Techtronics plant — ARDOR Green as green certification consultant.

Traditional industrial parks are transitioning toward the “eco-industrial” model with essential features: circular water management, optimized energy, integrated waste treatment chains, and carbon governance. Technical experience and international support (UNIDO, GEIPP program) highlight cost and resource savings from converting 21 pilot industrial parks across the region. In Southeast Asia, Indonesia and Thailand have begun issuing regulatory frameworks and initiatives for EIP — indicating a feasible pathway for Vietnam to scale up this model.

2. Sustainable Smart Cities — integrating IoT, Digital Twin, and Energy Management

Figure 2: Key elements of a smart city.
Photo: Trends in Smart City Developments.

In major cities, the “smart + green” trend is reflected in the adoption of intelligent building management systems (BMS), energy-monitoring sensors, and digital twins for operational simulation and optimization. These solutions not only reduce energy consumption but also generate quantitative data for ESG reporting — a growing requirement among international investors. Singapore’s successful models (Green Mark projects and buildings retrofitted to Zero-Energy / Green Mark Platinum) demonstrate a practical roadmap for Vietnam.

3. Rapid Growth of Green Buildings — but Standards & Quality Need Alignment

Figure 3: Overview of the Green Building Market, Q1 2025.
Photo: IFC.

Data shows strong growth in Vietnam’s green building market: in 2024, more than 160 additional buildings were certified, bringing the total to around 550–560 (LEED, LOTUS, EDGE, Green Mark). This surpasses previously set targets. The growth is positive but raises the need for unified performance criteria (to avoid “greenwashing”) and to ensure real operational benefits for owners and tenants.

4. Retrofit — Transforming Old Assets into High-Value Green Assets

Retrofit is becoming the most efficient and cost-effective strategy for revitalizing old buildings in Vietnam and Southeast Asia. Instead of demolishing and rebuilding, owners are upgrading building envelopes, HVAC systems, LED lighting, and integrating BMS/IoT to reduce energy consumption by 20–40% and extend asset lifespan.

Figure 4: Keppel Bay Tower — a former office building upgraded with advanced technologies, significantly reducing energy consumption and increasing rental value.
Photo: Keppel.

Singapore’s Keppel Bay Tower is a standout example: retrofitted to Green Mark Platinum Zero Energy, achieving major energy savings and higher rental value. This trend is spreading regionally:

• Malaysia (2024–2025): multiple office buildings in Kuala Lumpur CBD retrofitted to meet GreenRE and WELL Lite certifications.
• Thailand: Central Pattana upgrades older shopping centers with high-efficiency cooling and smart lighting to cut energy by up to 30%.
• Indonesia: Jakarta retrofits state buildings and private offices to meet green PROPER standards.

For Vietnam, retrofit is especially suitable for office buildings, hotels, and malls in prime locations but with outdated systems — improving rental value, occupancy rate, and preparing for upcoming net-zero requirements.

5. Renewable Energy & Storage Infrastructure — from Rooftop Solar to Micro-Grids, toward Energy Autonomy

Figure 5: Microgrids mark a shift in energy distribution thinking — local grids capable of operating independently or in parallel with the national grid, enhancing resilience and flexibility.
Photo: DVL Group.

The integration of rooftop solar, BESS (Battery Energy Storage Systems), and distributed micro-grids is becoming essential in modern real estate projects, especially industrial parks, logistics centers, and mixed-use urban developments. Beyond reducing pressure on the national grid, these solutions offer new pathways to on-site energy autonomy — increasingly critical amid energy market volatility and ESG-driven emission reduction expectations from international investors.

Leading enterprises now view internal renewable energy systems as “strategic assets”, helping them:

• Stabilize operating costs when electricity prices fluctuate;
• Reduce reliance on fossil-based electricity and risks during peak-season shortages;
• Ensure continuous operation of production lines and cold-chain logistics — vital for FDI and supply-chain operations.

However, Vietnam’s energy market still has risks. Controversies over feed-in tariff policies and regulatory adjustments in recent years for solar and wind projects have caused investor concerns and slowed new deployments. This underscores that attracting long-term green capital requires stable, transparent, predictable energy policies — along with mechanisms enabling easier self-production and self-consumption.

6. Green Finance & Market Mechanisms — Strong Momentum but Needs Transparency

Figure 6: The green finance market is expanding rapidly, requiring systems that ensure transparency of capital flows and ESG data.

Vietnam’s markets for green bonds, green loans, and “green credit” have grown quickly; regulators have set targets to increase the proportion of green lending and encourage green bond issuance. The maturation of these financial channels will be a catalyst for green industrial and certified real estate projects. However, to attract international capital, Vietnam needs a clear taxonomy and reliable ESG data systems.

Conclusion — Priority Actions for 2026

1. Standardize taxonomy and ESG reporting requirements to improve green capital efficiency.

2. Promote retrofit for well-located buildings — faster returns, lower cost than new construction.

3. Develop eco-industrial parks (EIP) using scientific frameworks with environmental audits and community benefits.

4. Stabilize renewable-energy policies to strengthen long-term investor confidence.

In summary, 2026 is the year when “green” in Vietnam moves from trend to operational and financial standard — guided by practical lessons from Singapore (retrofit, Green Mark), Indonesia (EIP and greenwashing warnings), and the broader ASEAN region. The combination of stable policies, transparent criteria, and technical actions (retrofit, BMS, renewable energy) will determine whether Vietnam’s green real estate market becomes sustainable and attractive to international capital in the medium to long term.

Selected References

• Keppel — Building Sustainable Cities: The Benefits of Retrofitting & Keppel Sustainability Report.
• UNIDO / GEIPP lessons on Eco-Industrial Parks (2024).
• PwC / Vietnam — Green Finance Development Overview (2025).
• Reuters coverage on renewable investment risks in Vietnam (policy impacts).