Overview of green building development process

Faced with the pressure of climate change, the trend of sustainable construction is becoming an inevitable requirement in Vietnam. The increase in green-certified projects not only helps save energy and improve the quality of life but also brings long-term economic benefits. However, besides the development potential, Vietnam still faces many challenges in effectively expanding this model.

Figure 1 Statistics of the number of green certified buildings by year from 2010 to 2024

In recent years, Vietnam has witnessed a significant increase in the number of green buildings. Specifically, in 2024, Vietnam will have 163 more green certified buildings, bringing the total to 559 buildings with 13.6 million m² of floor area. This number far exceeds the initial target of 80 green buildings by 2025 and 160 by 2030.

In Vietnam, popular green certification systems include EDGE (Excellence in Design for Greater Efficiencies), LEED (Leadership in Energy and Environmental Design), Green Mark and LOTUS. Of which, EDGE certification accounts for the largest proportion with 258 projects, equivalent to 41.80% of the total number of green buildings, followed by LEED with 208 projects (39.48%).

The structure of green buildings in Vietnam is undergoing significant changes. Not only limited to the civil sector such as apartments, offices or commercial centers, green buildings are expanding strongly into the industrial sector. Notably, the number of green industrial buildings has grown dramatically in the past two years, especially with the explosion of the green warehouse model alongside the steady development of the industrial factory system. This trend not only reflects a shift in construction thinking but also shows a growing commitment to sustainable development. (1)

Figure 2 TTI Techtronic Industries project achieved LEED Gold certification, consulted by ARDOR Green

Factors leading to the promotion of green buildings 

Figure 3 Prime Minister attends the Climate Change Summit within the framework of COP26

The development of green buildings in Vietnam is influenced by many important factors, including government support policies, public awareness and economic development trends:​

Legal and policy framework: The Vietnamese Government has issued many policies to promote the development of green buildings. Resolution No. 06/NQ-TW dated January 24, 2022 of the Politburo encourages the use of green materials and the development of green infrastructure in urban areas. ​(2)

Urban assessment and classification criteria: Resolution No. 26/2022/UBTVQH14 has integrated green building criteria into the urban assessment and classification system, aiming to promote the construction of environmentally friendly works. (3)

Guidance on the implementation of the Housing Law: Decree No. 95/2024/ND-CP dated July 24, 2024 adds criteria on efficient use of energy and resources, green buildings in the process of reviewing, evaluating and classifying apartment buildings.

Economic and environmental benefits: Green buildings not only reduce energy and water consumption, but also bring long-term economic benefits through reduced operating costs. However, there are still misconceptions, such as the belief that green construction requires high initial investment costs, when in fact this investment can be quickly recouped through operational savings.(4)

Growth in the number of green buildings: By the end of the third quarter of 2024, Vietnam had more than 500 green buildings with a total floor area of ​​over 12 million m², showing a positive change in the awareness and actions of investors and the community. ​(5)

Participation of international corporations: Investment from foreign corporations along with strict international environmental standards is the driving force for domestic investors to improve the quality of construction works.

Challenges and solutions

a. Lack of specialized human resources in green buildings:

Challenge: The shortage of human resources with in-depth expertise in green building design, construction and operation affects the quality and efficiency of projects.​

Solution: Strengthen training and human resource development through specialized educational programs, cooperation with international organizations and encouraging research in the field of green buildings.​

b. Inadequate awareness of green buildings:

Challenge: Many people still misunderstand that green buildings are simply about planting lots of trees, while in fact, green buildings require high efficiency in using energy, water and materials, while minimizing negative impacts on the environment.(6)

Solution: Implement communication and public education campaigns to raise awareness of green buildings, emphasizing the economic and environmental benefits they bring.

c. Lack of specific incentive policies for green buildings:

Challenges: Despite the incentives, the lack of specific financial and administrative incentives for green building projects remains a major barrier.​

Solution: Develop clear incentive policies such as preferential loans, reasonable floor area bonuses, and support for green bond issuance to encourage investors to participate in this field.​(7)

d. Lack of a suitable system of criteria for evaluating and certifying green buildings:

Challenge: Vietnam currently does not have a set of criteria for assessing and certifying green buildings that are suitable for the conditions and characteristics of the country.​

Solution: Develop a set of green building assessment tools specifically applicable to Vietnam, and at the same time stipulate the authority to assess and grant certification to the construction agency to ensure transparency and efficiency.​(8)

e. High initial investment cost:

Challenge: The initial cost to implement a green building project in Vietnam is often higher than that of a conventional project, ranging from 1.2% to 10%, while preferential policies and support from the State for investors implementing green building projects are insignificant.(9)

Solution: Develop more effective incentive policies for green building investors such as loans with preferential interest rates, reasonable floor area bonuses, and additional incentives for green bond issuers.(10)

About ARDOR Green:

​ ARDOR Green, established in 2015, is one of the leading and pioneering consultants in sustainable design and green buildings in Vietnam. The company specializes in providing consulting and design services according to international standards such as LEED, LOTUS, EDGE, WELL, Fitwel and GRESB, with a commitment to optimizing investment efficiency and project development for customers and partners.