Green Buildings in Vietnam: How Sustainable Are They?

Alberto VettorettiManaging Partner, Dezan Shira & Associates

Vietnam’s growing economy, increasing population, and rapid urbanization have increased pressure on its natural resources. The country’s enormous coastline makes it vulnerable to the effects of climate change and rising sea levels. Thus, its government has realized the need to transition towards making its urban development smarter and more sustainable.

Sustainable construction

As per the Vietnam Green Building Council (VGBC), the number of green buildings in Vietnam is modest, reaching 150 by the end of 2019. All building types, including commercial, institutional, and residential, use a significant proportion of a country’s resources in their lifespan. In Vietnam, buildings use 17 percent of the country’s fresh-water, a quarter of its wood harvest, 30-40 percent of its energy production, and a half of its raw materials.

Sustainable construction is a valuable solution to slow down human activities’ detrimental effects on the environment. Structures identified as green are highly efficient in utilizing energy and materials – subduing their adverse implications on public health and the ecosystem.

These buildings – created for a long lifespan – require eco-friendly materials characterized as either non-toxic, recycled, efficient, energy-saving, long life-cycle, or less polluting to the environment.

Rising opportunities in Vietnam’s green architecture

The Green Infrastructure Investment Opportunities (GIIO) report presents major trends and developments for green infrastructure and energy. It showed massive investment potentials adding close to US$100 trillion worldwide for the 2019-2030 period. It asserted that Vietnam would need to adopt greener infrastructure to compensate for the environmental implications of its economic development – such as the increase in energy consumption, urban development, and greenhouse gas (GHG) emissions. 

As per VGBC, demand from consumers and the market is the prime driver of green buildings in Vietnam.

Government policies supporting green buildings

In the past five years, Vietnam’s Ministry of Construction (MoC), with the support of UNDP’s Global Environment Facility is realizing a project to enhance Energy Efficiency in Commercial and high-rise residential Buildings (EECB).

EECB has exhibited several solutions to improve existing and new buildings’ efficiency. These solutions saved 25-67 percent of energy for each building, coming at the expense of up to three percent addition to the investment cost. The aforementioned numbers assume a maximum payback period of five years for calculations, as per the UNDP programme.

As a part of this project, the MoC has updated the economic and technical norms in the National Technical Regulation on Energy Efficient Buildings. This policy prescribes the mandatory technical requirements for the design, construction, or renovation of skyscrapers with a total floor area of 2,500 square meters and above.

Additionally, the EECB project coordinates research and proposals for the amendment of the Law on Construction, especially regarding policies, mechanisms, and regulations on efficient and cost-effective energy use.

By 2030, Vietnam has committed to reducing greenhouse gas emissions by nine percent compared to business-as-usual (BAU) estimates. This number can increase to 27 percent with international support. These commitments are part of the Nationally Determined Contributions (NDCs), which form the core of the 2015 Paris Agreement. The final goal of NDCs is to regulate global warming from 1.5 to 2°C above pre-industrial levels. NDCs prescribe what changes a country needs to implement to control greenhouse gas emissions and slow down climate change.

Laws governing green buildings

Vietnam’s construction sector has enacted the following policies to facilitate the construction of green buildings:

Advancement of green cities a priority

Over 30 cities, including Hanoi, Ho Chi Minh City, and Da Nang, have made steps to become green equivalent. In this direction, Vietnam introduced the urban green growth development plan, urban green growth indicators, and a smart city strategy.

The five pillars of developing smart and sustainable cities are as follows:

  • Sustainable quality;
  • Reducing energy consumption;
  • Saving resources;
  • Health and safety; and
  • Reducing environmental impact.

Certification systems

To be acknowledged as green, a building must meet several sustainable development requirements. The criteria include attaining high efficiency in energy and material usage, lessening impact on the environment, and adhering to safety standards.

There are diverse green building certification systems around the world. The standards, including the Leadership in Energy and Environmental Design (LEED), World Bank’s  Excellence in Design for Greater Efficiencies (EDGE), and Singapore’s Green Mark, are most widely adopted.

The LEED standard focuses on developed economies, and the EDGE system emphasizes lowering energy and material consumption. The Green Mark system bases itself around the developing economies’ construction market. VGBC has developed LOTUS – a standard specifically for the needs of Vietnam.

Educating sustainability for the next generation

As the notion of green building is relatively new to Vietnam’s real-estate developers and architects, the government is rolling out educational courses to fill this knowledge gap. The MoC, in collaboration with the Swiss government and International Finance Corporation (IFC), has launched a curriculum on eco-friendly design to college campuses.

These courses prepare young builders to develop electricity and water saving buildings, covering several aspects of the discipline – including bioclimatic design, natural ventilation, solar power, and insulation. They are introduced to modeling and simulation software, allowing them to test out their building designs exhaustively, and test innovative methods.

Green architecture on the rise

In the past decade, the popularity of buildings built around the green concept has caught pace. Several leading property developers in Vietnam, including Vingroup, Phuc Khang, Gamuda Land, and Sun Group, have begun launching eco-themed residential projects. Vietnamese conglomerate Vingroup has launched four real estate projects in the country.

Another mammoth implementation of the green concept is the Mui Dinh Ecopark located in Ninh Thuan. This eco-park spanning over vast 700 hectares consists of seven hotels with 7000 rooms, over 500 ocean-facing villas, a theme park, a casino, and several other recreational facilities.

Feliz En Vista, a 35-story skyscraper in Ho Chi Minh City has been developed by Singapore’s Capitaland Group. This building’s design reduces its HVAC systems’ energy consumption by roughly half and lighting by 70. These savings translate to savings of nearly 4800 MWh of electricity, 3900 tonnes of carbon dioxide from being emitted, and energy cost saving of roughly US$600,000 each year. These changes increased the building cost by two percent with an estimated payback period of 1.5 years.

Challenges in the green buildings sector

Vietnam’s critical roadblocks to green building adoption include the lack of adequate support in policies, green building specialists, and higher initial investment. As per VGBC, misinformation was one reason in the past for Vietnam’s delayed adoption of green buildings, with the perception of up to a 25 percent price increse for constructing a green equivalent.

As per MoC officials, construction for green buildings can cost up to five percent more. For developers, contractors, and users, going green may mean a minor bump in price but in exchange, they reap long-term benefits from the building’s sustainability, such as lower maintenance charges and a shorter payback duration.

Need for sustainable building materials

The building material industry takes its toll on the environment throughout its value chain. The energy and natural resources used to exploit, process, and transport raw materials are part of this effect.

Producing baked clay bricks depletes a significant amount of arable farmland, putting the country’s food security at risk. Besides brick, several other construction materials – including cement, steel, and glass – also leave a significant carbon footprint.

Green building materials and techniques

Green buildings have extensive green cover around them compared to the usual architecture that crams several buildings in a small area – keeping the locality cooler. These buildings use natural wind flow to ventilate their indoors. Such buildings have large windows that allow plenty of light in the rooms, minimizing the need for artificial lighting during the day.

The windows use glass that slows down the outside heat from seeping into the building. Insulating the building’s roof keeps the sunlight from heating the top few floors. Design changes like these allow the buildings’ indoors to naturally stay cooler and brighter. They significantly improve the residents’ living quality while minimizing energy consumption.

Takeaways

Green buildings can be potentially profitable for foreign investors as this type of housing is only set to grow in the future. In order for Vietnam to effectively house its urbanizing population, green and affordable housing will have to be at the forefront of construction in the mid to long-term future.

About Us

Vietnam Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in Hanoi and Ho Chi Minh City. Readers may write to [email protected] for more support on doing business in Vietnam.

Links