Driving green building development in Vietnam from legal aspect

These proposals were made at an international conference themed “Regulatory system on green building projects in Vietnam and some countries” co-organised by Ho Chi Minh City University of Law and Phuc Khang Corporation on April 10 in Ho Chi Minh City.

The event attracted more than 120 experts and lawyers specialising in green building research in Singapore, Malaysia, the UK, and Vietnam, and representatives from relevant management agencies, businesses, lecturers, and students.

Green building picture in Vietnam through dedicated research

The conference aimed to identify and delve into regulatory, economic, environmental and practical aspects of green building development in Vietnam, as well as learning from international experiences.

The agenda encompassed two main sessions with valuable presentations on green buildings.

These included ‘Green buildings in Singapore - Construction of buildings which mandate extremely low energy use or no energy use’, ‘Singapore's regulatory system on green building development and lessons for Vietnam’; ‘Regulatory system for green real estate projects in Malaysia’, and ‘Mechanisms to promote green buildings in London, the UK’.

Tran Viet Dung, vice principal of Ho Chi Minh City University of Law, gave opening remarks

The event also featured presentations proposing policies and laws related to green building development, such as ‘Regulatory framework for implementing green building projects in Vietnam’, ‘Green buildings in Vietnam - Development practice and new challenges’, and ‘Legislation on green credit, green bonds for investment projects: Current situation and recommendations’.

In the opening remarks, Tran Viet Dung, vice principal of Ho Chi Minh City University of Law, noted, “Today we are living in an era where green building is not simply a trend, yet an indispensable part of our global commitment to sustainable development. In fact, green buildings do not only bring positive changes to the environment, but also establish a practical and dynamic foundation for research on sustainable development. Achievements around the world also heighten the potential for collaboration between educational institutions and government agencies in expanding the boundaries of green construction.

“In Vietnam, the construction industry is promoting green construction measures, reflecting the country's commitment to sustainability and environmental protection. In that context, Ho Chi Minh City University of Law recognises the urgent need to integrate green construction with scientific research. Within the framework of the conference, the cooperation between Ho Chi Minh City University of Law and Phuc Khang Corporation is a testament to promoting our partnership for common development.”

At the conference, speakers said that green building is reflecting the worldwide trend in green development, satisfying the requirements to drive down greenhouse gas emissions.

The issue of green building development in Vietnam, however, is still unpopular for a combination of reasons, especially regarding the regulatory aspect.

Experts also shed lights on the backlogs that are hindering green building development in Vietnam.

Accordingly, real estate businesses are hesitant to participate due to high investment costs and lack of experience in green building development, while the criteria to evaluate green buildings in Vietnam is not yet complete.

On the side of state agencies, the Ministry of Construction along with relevant ministries and sectors is still in the process of developing preferential policies on taxes and fees, and facilitating documentation procedures for energy-saving and green building projects.

Recommendations for green building development from experts and business executives

Luu Thi Thanh Mau, vice chairwoman of Vietnam Young Entrepreneurs Association, vice chairwoman of Ho Chi Minh City Real Estate Association, and CEO of Phuc Khang Corporation, has become famous as one of the pioneering leaders promoting green construction in Vietnam.

At the conference, Mau was one of the most prominent speakers with a passionate presentation ‘Singapore’s regulatory system on green building development and lessons for Vietnam’.

CEO Luu Thi Thanh Mau gave a presentation at the conference

Leveraging practical experience and research, CEO Thanh Mau underlined the need to have in place a set of green buildings/green building project assessment tools specifically applicable to Vietnam and regulate the construction authority as the competent agency to evaluate and issue green building project certification.

This aims to prevent the arbitrary application of green buildings in Vietnam, providing a basis for developing green buildings in a methodical and practical way.

The next proposal stressed by Mau was a mandatory roadmap for green buildings/green building project implementation, gradually transitioning from the public to the private sector, underlining the government’s strong commitment to propelling green building development in Vietnam.

CEO Thanh Mau revealed that expediting a green building project in Vietnam is more costly than a conventional construction project by 1.2 to 10 per cent. Meanwhile, preferential policies and support from the state for investors implementing green building projects are currently insignificant, creating a reluctance to invest in green buildings on the part of investors.

Mau stressed the need for more incentives for green building investors, such as offering loans with preferential interest rates, rewarding floor areas at a reasonable level, and creating more incentives for green bond issuers.

It is also important to launch awards related to green buildings to honour the contributions made by individuals and organisations.

Finally, to promote green buildings in Vietnam, along with policies and regulations, it is necessary to raise awareness about the benefits of green buildings among investors and consumers.

“It can start in urban areas, such as through training programmes at universities, and then expand to all people across society, with a communications strategy to make clear what green buildings are and the benefits they can bring in economic, social, and environmental aspects,” said Mau.

Douglas Snyder, CEO of Vietnam Green Building Council

Douglas Snyder, CEO of Vietnam Green Building Council (VGBC) gave a presentation titled ‘Green Buildings in Vietnam - Development process and new challenges’, and stated that green buildings are not a temporary trend in Vietnam's construction industry, yet an inevitable trend to realise the goal of sustainable development.

“Green building should be considered an essential measure to deal with increasing challenges in Vietnam's construction sector, such as overpopulation and speedy urbanisation, and issues such as natural resource consumption, waste and pollution management, and climate change implications.

To push the development of green buildings in Vietnam, it is necessary to raise awareness about green buildings for the community and relevant stakeholders, particularly the government, which can play an essential role with appropriate strategies, regulations, and policies,” said Snyder.

Green finance development and promotion for Vietnam Vietnam is in the process of formulating policies to develop green finance markets. Nguyen Ba Hung, principal country economist from the Asian Development Bank in Vietnam, spoke to Thanh Tung about the opportunities and challenges of green finance development in the country, and policy recommendations.

Green development the first choice for businesses Many businesses in Vietnam are still committed to investing more resources for green and sustainable development, despite the macroeconomic challenges.

HCM City lures green investments to boost sustainable development Ho Chi Minh City, Vietnam’s biggest economic hub, is working to lure both domestic and foreign green investments, towards sustainable development.