Published on and written by Cyril Jarnias
Green Real Estate in Vietnam: A Growing Trend
In Vietnam, as environmental awareness continues to grow, the real estate sector is transforming with the emergence of green real estate. Facing climate change challenges, demand for environmentally friendly construction is increasing, prompting governments and market players to develop innovative standards and offer attractive subsidies to encourage sustainable practices.
2025 Outlook
Looking toward 2025, these measures aim to profoundly reshape Vietnam’s real estate landscape while promising to reduce the national carbon footprint. Ongoing initiatives are paving the way for an era where sustainability rhymes with profitability and where government involvement translates into crucial financial incentives for all sector participants.
Good to Know:
Green real estate isn’t limited to new construction. Eco-friendly renovations can also benefit from government subsidies, offering opportunities for current property owners.
Green Building Standards in Vietnam
The green building standards currently in effect in Vietnam are based on a combination of national regulations, adapted international standards, and sector initiatives aimed at supporting the country’s 2050 climate commitments.
Current Main Standards and Regulations:
- QCVN 09:2017/BXD: National regulation on energy efficiency in buildings. It sets minimum requirements for energy consumption in new constructions, particularly through thermal insulation, solar control, and natural ventilation.
- LOTUS (Vietnam Green Building Council): Voluntary certification inspired by international standards (LEED, BREEAM), adapted to local specifics. It assesses energy efficiency, water management, sustainable material selection, and indoor environmental quality.
- EDGE (IFC/World Bank): International tool adopted in Vietnam to certify energy and water savings as well as efficient material use.
New Regulations Planned by 2025:
- Expected strengthening of QCVN 09 to more strictly integrate criteria related to carbon reduction and climate adaptation.
- Increased promotion of voluntary certifications like LOTUS or EDGE in the public sector through pilot project calls.
Main Criteria Considered by These Standards:
| Criterion | Concrete Examples |
| Energy Efficiency | High-performance insulation; natural lighting optimization; efficient HVAC systems; renewable energy integration (solar) |
| Sustainable Materials | Use of recycled or local materials; limitation of traditional concrete; wood from sustainably managed forests |
| Water Management | Rainwater harvesting; greywater reuse; water-saving sanitary equipment |
| Environmental Quality | Natural ventilation; limitation of indoor pollutants; access to natural light |
Summary List – Other Considered Criteria:
- Landscape integration & biodiversity
- Building durability/longevity
- Architectural adaptability/flexibility
- Universal accessibility
Organizations Involved in Standard Development/Promotion:
- Ministry of Construction (MoC): Development/revision of national technical regulations.
- Vietnam Green Building Council (VGBC): Development/management of LOTUS label, awareness-raising for private/public actors.
- Local professional associations (Vietnam Association of Architects, trade chambers).
- International partners such as IFC/World Bank for EDGE tool dissemination or technical support.
Good to Know:
In Vietnam, current green building standards, such as the Green Building Code and Lotus standards certified by the Vietnam Green Building Council, aim to improve energy efficiency, promote the use of sustainable materials, and optimize water management. By 2025, new regulations are expected to strengthen these criteria with particular attention to carbon emission reduction and smart technology adoption. The Ministry of Construction and various local NGOs, like the Vietnam Sustainable Energy Alliance, play a key role in promoting these standards. These initiatives align with UN sustainable development goals, fostering coherence between national green building and international standards. A concrete example shows that pilot projects successfully reduce energy consumption by 30% compared to traditional constructions, illustrating the potential effectiveness of these standards.
Renewable Energy Subsidies in Vietnam
The Vietnamese government recently strengthened its support policy for renewable energy, particularly in the green real estate sector, through the promulgation of Decree No. 58/2025/ND-CP and the revision of the Electricity Law effective early 2025. These measures align with national sustainable development goals and aim to accelerate the energy transition.
Main Incentive Mechanisms and Programs
- Land fee exemptions and reductions:
- Total exemption from maritime domain usage fees for three years for maritime projects (including offshore wind), then 50% reduction for an additional nine years.
- Exemption from land use rights and rents for three years for terrestrial projects, with subsequent application of general regime.
- Electricity purchase guarantee:
- Contractual commitment allowing project developers a minimum purchase guarantee corresponding to 70% of contracted volume during the main loan repayment period (maximum twelve years).
- Priority connection to the national grid during demand peaks, applicable only to projects connected to the public grid.
- Accelerated procedures for approval of investments related to technological innovation (solar panels, wind turbines, storage systems).
| Incentive Type | Detail | Maximum Duration |
|---|---|---|
| Maritime zone exemption | Full then reduction | Up to 12 years |
| Land exemption | Full then adaptation to common law | Up to 3 years |
| Energy purchase guarantee | Min. purchase guaranteed by EVN | Up to 12 years |
Recent Investment Statistics
- Approximately $16 billion USD invested in the renewable sector over the past five years.
- Renewable energy share now represents nearly 33% of the national electricity mix as of June 2025 compared to less than 10% in 2018.
- Projected growth: Vietnam aims for installed capacity exceeding 40 GW from combined solar and wind by end of 2025.
Projected growth by sector:
| Sector | Installed Capacity (2024) | Target End 2025 |
|---|---|---|
| Solar photovoltaics | ~18 GW | >20 GW |
| Onshore wind | ~6 GW | >10 GW |
| Offshore wind | BREEAM Certification and Its Impact in Vietnam |
BREEAM Certification and Its Impact in Vietnam
BREEAM certification (Building Research Establishment Environmental Assessment Method) is based on fundamental principles aimed at assessing and promoting the environmental performance of buildings throughout their lifecycle. It relies on a holistic approach, integrating various criteria covering management, health and well-being, energy, transport, water, materials, waste management, pollution, ecology, and innovation. Each criterion receives a weighted score, resulting in a final rating that classifies the building from Pass to Outstanding.
| Main BREEAM Criteria | Objectives |
|---|---|
| Management | Efficiency of management processes |
| Health and Well-being | Occupant comfort and health |
| Energy | Reduction of consumption and emissions |
| Transport | Accessibility and sustainable mobility |
| Water | Management and consumption reduction |
| Materials | Use of low environmental impact materials |
| Waste | Waste management and valorization |
| Pollution | Limitation of polluting emissions |
| Ecology | Protection of local biodiversity |
| Innovation | Encouragement of practices beyond standard requirements |
Adaptation and Adoption in Vietnam
In Vietnam, BREEAM certification is primarily adopted by international-scale real estate projects or by investors seeking sustainable asset valuation. Its adaptation involves contextualizing criteria, particularly considering climatic specifics, local materials, and Vietnamese construction practices. Local actors collaborate with accredited BREEAM assessors to integrate requirements from the design phase through building operation.
Importance for Green Real Estate in Vietnam
- Valuation of real estate assets, with increased attractiveness for foreign investors.
- Reduction of operating costs through better energy efficiency and optimized resource management.
- Improvement of occupant quality of life and developer image.
- Contribution to national greenhouse gas emission reduction goals.
Concrete Examples of BREEAM Projects in Vietnam
| Project | Location | Certification Level | Achieved Benefits |
|---|---|---|---|
| Deutsches Haus Ho Chi Minh City | Ho Chi Minh City | Excellent | 30% reduction in energy consumption |
| CapitaLand’s Vista Verde | Hanoi | Very Good | Water optimization and smart management |
| OneHub Saigon | Ho Chi Minh City | Good | Valuation for international tenants |
Economic and Environmental Benefits
- Reduction in operational costs (energy, water, maintenance).
- Increase in real estate asset value and higher occupancy rates.
- Improvement in environmental performance: lower CO₂ emissions, better waste management, preservation of urban biodiversity.
Implementation Challenges in Vietnam
- Lack of awareness and training among local professionals.
- Higher initial costs related to certification and compliance.
- Difficulties accessing certain materials or technologies compliant with international standards.
- Adaptation of BREEAM criteria to Vietnamese reality (climate, regulation, local resources).
Strategies to overcome these obstacles:
- Strengthening sector actor training.
- Tax incentives and government subsidies.
- Development of local-international partnerships to facilitate skills transfer.
- Progressive adaptation of BREEAM frameworks to regional specifics.
Possible Evolution of BREEAM Certification by 2025
- Enhanced integration of climate resilience and circular economy criteria.
- Consideration of Vietnamese government support policies, particularly regarding energy transition.
- Deployment of localized BREEAM versions to better address national challenges.
- Increased digitalization of assessment process and real-time environmental performance monitoring.
Important text:
BREEAM certification, by adapting to the Vietnamese context, constitutes a major lever to accelerate the transition toward green real estate that is economically viable and environmentally respectful, while valuing local built heritage on the international stage.
Good to Know:
BREEAM certification, which assesses building sustainability, is establishing itself in Vietnam as a crucial lever for green real estate by promoting environmentally respectful construction. Its adoption in the country is manifested through projects like the FPT university campus in Ho Chi Minh City, which benefit from significant reductions in energy consumption and CO2 emissions. However, adapting these international standards to the local context faces challenges, including limited awareness among real estate actors and inadequate training. To address this, government initiatives and strategic partnerships with international experts are essential. By 2025, BREEAM’s evolution in Vietnam could be facilitated by more robust incentive policies and increasing integration of sustainability standards into local regulations, thereby paving the way for even greener and more sustainable construction.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
