Green industrial parks present strong investment potential

According to the 2024 Vietnam Green Building Market Overview report, published by the EDGE certification system and the International Finance Corporation (IFC), a member of the World Bank, Vietnam now boasts 559 green-certified buildings. This figure significantly surpasses the previously set targets of 80 green buildings by 2025 and 150 by 2030.

Green industrial parks are becoming increasingly attractive to investors. Photo: baodautu.vn

Industrial green buildings have demonstrated the most significant growth, accounting for more than 56 per cent of all certified green buildings recorded in 2024, compared to 48 per cent in 2023 and almost 38 per cent in 2022, highlighting the steady upward trend.

The total number of industrial green buildings currently stands at 163, marking a more than twofold and threefold increase from 2023 and 2022 respectively.

Industrial green buildings are designed, constructed, and operated according to green standards and principles to minimise environmental impact and optimise resource utilisation.

According to industry analysts, the relocation of manufacturing activities, along with accelerated industrialisation, expanded production, and logistics development in Vietnam, are key drivers behind the rapid expansion of industrial green buildings.

Statistics from the General Statistics Office indicate that registered capital in the real estate sector surpassed $6.3 billion in 2024, with the industrial real estate segment being the most sought-after by foreign investors.

The agency forecasts that 2025 will continue to offer opportunities for foreign investment to flow into green industrial park (IP) projects.

During the Vietnam Green Building Week last October, Hoang Manh Nguyen, chairman of the Institute of Green Urban Science and Technology, said, "The demand for green buildings in IPs is extremely high, particularly for factories exporting products to developed markets. Many businesses need green certification to facilitate their operations and secure partnerships to distribute their products."

According to Nguyen, green buildings are not merely a commitment to environmental and social responsibility but can also yield tangible financial advantages. The government is offering certain incentives for businesses that incorporate green elements, such as tax reductions, preferential land lease terms, and financial support for adoption of energy-efficient technologies.

Consequently, the demand for industrial green buildings is expected to remain strong. Additionally, investment in green IPs is anticipated to pull in substantial foreign investment.

Speaking on a VTV news segment on February 10, Edwin Tan, deputy CEO of Frasers Property Vietnam, said most foreign-invested enterprises entering the Vietnamese market now require their projects to meet green building standards through the application of environmental, social, and governance (ESG) policies.

"Although initial investments in ESG-related equipment and technology entail high costs, the benefits derived from compliance far outweigh these requirements, ensuring sustainable development and competitiveness for businesses in the long term," said Tan.

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