As Vietnam faces mounting challenges from climate change and rapid urbanization, green building development is becoming not only an inevitable trend but also a strategic opportunity for sustainable growth. Yet, according to many businesses, the journey toward greener construction remains difficult, mainly due to fragmented incentive policies and limited access to green finance, which make initial investment costs a significant burden.
The growing awareness of “green living” has fueled demand for environmentally friendly housing and urban infrastructure. Investing in climate-resilient, energy-efficient buildings is increasingly viewed as a vital solution to reduce emissions, enhance quality of life, and improve the resilience of Vietnam’s cities.
According to the Vietnam Green Building Market Overview 2024 report by the EDGE certification system and the International Finance Corporation (IFC), a World Bank member, Vietnam had 559 certified green buildings with a combined floor area of 13.6 million m² as of early 2025. In 2024 alone, 163 new projects were certified. Despite this progress, the Ministry of Construction notes that Vietnam’s proportion of green buildings remains modest compared with regional peers.
Ta Duc Binh, from the Institute of Agricultural and Environmental Policy Strategy under the Ministry of Agriculture and Environment, said Vietnam is standing at a “golden opportunity” in its green transition. The country can attract FDI, ODA, and international climate funds, promote green technology transfer, and create green jobs. However, high upfront costs, weak monitoring mechanisms, and the lack of strong incentives for taxation and land use continue to deter investors. He emphasized the need for Vietnam to build a comprehensive green investment ecosystem—including clear legal frameworks, preferential mechanisms, and transparent governance—to unlock its full potential.
From a business perspective, Luu Thi Thanh Mau, CEO of Phuc Khang Corporation, a pioneer with over 16 years of experience in sustainable construction, said that many “tough puzzles” still exist for green developers. She called for the Government to issue a unified set of green building standards and a national certification system to avoid “greenwashing” and ensure that projects labeled green truly meet sustainability criteria.
She also proposed tax breaks, preferential loans, land incentives, and fast-track approval for certified green projects. At the same time, communication, training, and public education should be strengthened to raise awareness of the long-term economic and environmental benefits of green buildings. “Enterprises must also make real and measurable commitments to sustainability—from planning and design to construction and operation—ensuring genuine, not symbolic, greenness,” she said.
Experts further recommend integrating green building development into national and local strategies and master plans, establishing mandatory targets rather than relying on voluntary participation. Regular updates to technical standards and energy-efficiency benchmarks are also essential to support low-emission, resource-efficient, and carbon-neutral projects.
Deputy Minister of Construction Nguyen Van Sinh noted that Vietnam’s green building movement has so far relied mainly on encouragement rather than regulation. In the coming years, he said, publicly funded projects should be required to meet green construction standards, setting an example for the private sector and steering the market toward sustainability.
Green building development is more than a design concept—it is a cornerstone of Vietnam’s sustainable economic transition. Once a supportive ecosystem is in place—with robust policies, feasible financing, and strong investor confidence—Vietnam will be well-positioned to achieve its net-zero emissions goal by 2050 and emerge as a regional leader in the green building market.