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Vietnam saw a substantial rise in green buildings in 2024, reaching a total of 559. (Photo: Pexels)
Driven by the global push for net-zero emissions, Vietnam saw a substantial rise in green buildings last year, reaching a total of 559, far surpassing its 2030 target by more than threefold. Notably, over half of the new green buildings were Industrial buildings, a trend expected to attract significant foreign investment.
Vietnam's green buildings exceed 500 units
According to the International Finance Corporation (IFC), a World Bank member, and the EDGE green building certification system, the number of certified green buildings in Vietnam has already exceeded the 2019 targets set for 2025 (80 buildings) and 2030 (150 buildings).
The most significant growth was seen in Industrial green buildings, which made up over half of the new buildings last year. By 2024, the total number of green factories reached 163, tripling in just two years.
Industry analysts attribute the rapid expansion of green factories to the relocation of manufacturing activities, accelerated industrialization, increased production capacity, and the growth of logistics infrastructure in Vietnam.
The demand for green industrial parks, especially for factories exporting products to developed countries, has also played a major role. Many of these factories require certification to ensure their products can be exported while maintaining operational standards.
PepsiCo announced plans to build two green factories in Vietnam in 2024. (Photo: iStock)
Supply chain pressures, government policies drive growth
Hoang Manh Nguyen, a member of the Vietnam Green Building Council, stated that there is significant demand for green buildings in green industrial parks, especially for factories that export products to developed countries. Many of these factories require certification to ensure their products can be exported and maintain operations.
In addition, the Vietnamese government has introduced incentives such as tax reductions, land lease discounts, and subsidies to encourage businesses to reduce energy consumption and integrate green development. These measures have further promoted the adoption of green buildings.
Foreign direct investment in Vietnam’s real estate exceeded $6.3 billion in 2024, with the largest share going to factory investments. It is expected that foreign investment will continue to flow into eco-friendly industrial parks in the coming years.
With sustainability now a key investment criterion for foreign companies, local real estate developers are taking notes. Edwin Tan, deputy CEO of Frasers Property Vietnam, emphasized that while the initial costs for ESG (Environmental, Social, and Governance) equipment and technology are significant, the benefits—both in terms of regulatory compliance and long-term sustainable growth—far outweigh these expenses, ultimately enhancing competitiveness.
