Green initiatives are key to growth for industrial real estate

For industrial property businesses, a key strategy to ensure sustainable growth and attract foreign direct investment (FDI) from promising markets lies in advancing green initiatives.

Industrial real estate projects that align with global green standards offer Vietnamese businesses a strong competitive edge. Aligning with green initiatives has become essential for Vietnam’s real estate sector, especially industrial property, to attract multinational and advanced manufacturers.

KCN Vietnam Group, a prominent industrial property developer, has unveiled several projects featuring warehouses adapted to meet green certifications.

According to Truong Khac Nguyen Minh, deputy general director of KCN Vietnam, as Vietnam actively pursues net-zero emissions by 2050, the industrial real estate sector is playing a vital role in promoting the green economy.

One of KCN Vietnam’s outstanding green projects is Phase 2 of DEEP C Haiphong, a pioneering development for the group in applying green building standards, aiming for LEED Silver certification.

"We believe that developing projects based on strict sustainability standards will deliver practical value to localities, helping Haiphong continue to draw in foreign investment while creating job opportunities for local workers," said Minh.

Truong Khac Nguyen Minh, deputy general director of KCN Vietnam. Photo: KCN Vietnam

KCN Vietnam previously announced its commitment to green building development, aiming to achieve sustainability standards and certifications across upcoming projects.

The application of LEED standards underscores the group's social responsibility and provides significant advantages for client enterprises. According to some reports,these include improved energy efficiency, with potential savings of up to 25 per cent on energy costs, a reduction in water usage by 10 per cent, and optimised operational costs. Additionally, green-certified buildings create healthier working environments, boosting labour productivity and community welfare.

Developing green and sustainable projects under LEED standards requires substantial initial investment. However, KCN Vietnam recognises this as essential for the business’s long-term development.

Furthermore, standardising projects towards sustainability poses challenges, particularly high initial costs. Yet KCN Vietnam is confident in the long-term environmental, economic, and social benefits these projects will bring to workers, clients, and communities, as well as to the overall development of the country.

DEEP C Haiphong represents KCN Vietnam’s first project adhering to LEED Silver standards. Covering a total land area of 23.2 hectares with over 150,000 square metres of leasable floor space, it includes ready-built factories, warehouses, and hybrid facilities combining both functions.

Upon completion, the ready-built facilities will meet high construction and fire safety standards (Class C), alongside optimal technical specifications such as ceiling height, floor load capacity, and dock levellers for warehouses. These features cater to a wide range of industrial and logistics sectors.

KCN DEEP C - Haiphong boasts convenience and efficiency for foreign investors, particularly logistics firms. Photo: KCN Vietnam

According to Haiphong People’s Committee, the northern port city has attracted more than $31 billion in FDI across nearly 1,000 projects as of October. As one of Vietnam’s leading FDI destinations, Haiphong hosts prominent European corporations such as Tesa, Polarium, ZL Automotive, and Assa Abloy.

The city is also home to global investors such as Korea’s LG Group ($7.24 billion), Japan’s Bridgestone Group ($1.22 billion), Hong Kong’s Regina Miracle Group ($1 billion), Taiwan’s Pegatron Group ($800 million), and South Korea’s SK Group ($500 million).

Under the Politburo’s Resolution No.30-NQ/TW from 2022, Haiphong is envisioned as a modern international logistics hub. The city is experiencing remarkable growth in logistics services, with an annual growth rate of 20–23 per cent, attracting significant investments from multinational logistics corporations.

Amid this dynamic landscape, KCN DEEP C, located in a key coastal economic region and offering exceptional investment incentives, continues to play a pivotal role in attracting overseas funding, particularly in the logistics sector.

Additionally, in October, KCN Vietnam commenced construction on another green-certified project in the southern region, KCN Nhon Trach 6D in Dong Nai, which aims to meet LEED Gold standards. This project spans 14.5 ha, with a total leasable floor area of over 97,000 sq.m. Phase 1, encompassing 44,000 sq.m, is slated for completion in the second quarter next year.

KCN Vietnam announced its strategic focus on green building development In July, targeting sustainability certifications for all future projects. This orientation serves as a guiding principle for the group’s operations.

KCN Vietnam kicks-off second phase of KCN Deep C in Haiphong KCN Vietnam Group broke ground for the second phase of KCN Deep C Haiphong on August 2, supporting the northern port city to draw more foreign investment for the logistics sector.

KCN Vietnam breaks ground on LEED-certified warehouse project in Dong Nai KCN Vietnam Group, a professional industrial property developer, on October 25 officially broke ground on the first phase of its high-quality ready-built warehouse project in Nhon Trach VI Industrial Park - Zone D, Dong Nai province.

Nhon Trach VI Industrial park welcomes new high-quality warehousing facility The industrial real estate market in Vietnam’s southeastern region continues to thrive with the recent groundbreaking of a new project by KCN Vietnam Group.