The Vietnam construction industry’s sustainable urban vision (Part 1)

Many businesses in Vietnam’s construction sector are striving to implement comprehensive solutions to tackle this issue.
At the Build to Last 2025 event organised by the CCIFV Construction Committee, Ms. Alison Astarita, Executive Vice President of Assa Abloy in Vietnam, highlighted that constructing a building or factory goes beyond creating a physical structure. It also involves establishing a safe and positive workplace where employees can reach their full potential. She also stressed that sustainable projects must begin at the design stage. The design style and spatial layout can help investors reduce costs and materials, while making the most of natural landscape elements. Selecting appropriate construction materials, basic equipment, and production tools are key considerations. Additionally, it’s crucial to take into account the energy system planned for the building. Factors such as local infrastructure and climate should also be considered when formulating solutions. Finally, as Ms. Astarita emphasised, selecting the right partner is equally critical.

With over 10 years of experience in the Vietnamese market, Ms. Astarita recounted the story of when Assa Abloy began constructing a factory for a partner in Hai Phong. Given the region’s typical hot climate, Assa Abloy’s construction standards were far higher than the local requirements. Achieving a climate-resilient infrastructure solution required considerable investment. However, this proved to be a wise decision, as just six months after the factory became operational, it sustained minimal damage during Typhoon Yangi, despite being at the epicentre of the storm. The factory was quickly up and running again following the disaster.

When it comes to material selection in construction, Mr. Nguyen Quoc Tuan, CEO of Pebsteel Vietnam, stated that contractors must actively propose and advise investors, offering a range of options. By prioritising local and recycled materials, and reducing emissions, significant cost savings can be achieved, while optimising both the design and functionality of the project. On a broader scale, Mr. Tuan suggested that the Government should introduce policies or regulations to encourage the use of green materials within the industry. He also highlighted the crucial role of relevant Associations in both “educating” the market and providing professional insights to consulting departments.

As an expert in wastewater treatment for industrial zones, Mr. Guillaume Gimonet, Operations Director of Water Southeast Asia at Suez, praised the Vietnamese Government’s approach to integrating individual factories into industrial zones, with centralised wastewater treatment plants serving the entire zone. “The concentration of wastewater treatment plants in Vietnam has risen from 62% to 93% in just eight years. This strategy not only supports robust industrial development, providing economic benefits, but also enhances climate resilience,” said Mr. Gimonet.

As a rapidly developing and attractive country, experts agree that Vietnam must blend international construction standards with local architectural identity to achieve its sustainability goals. This is especially important in the construction sector, as it plays a key role in shaping the appearance of urban areas.

For many years, construction companies and investors, from residential to office buildings, have increasingly focused on meeting green and sustainable standards in line with international expectations. Adhering to green building standards not only drives sustainable urban development and improves living environments, but also contributes to national sustainability goals.

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Popular green certifications include EDGE from the IFC (World Bank), LEED from the US Green Building Council, and BCA Green Mark from Singapore’s Ministry of Construction. ESG-compliant buildings are seen as solid investments, reducing risks and improving business efficiency. In Ho Chi Minh City, around 20 buildings currently hold green certification. Many projects are also competing to achieve higher certification levels and expand geographically, such as REE Group’s e.town 6 building, which secured LEED Platinum certification—the highest level of LEED—within Tan Binh District. This marks the second office building in Ho Chi Minh City to achieve this certification, following the Deutsches Haus building.

Urban areas with smart architecture, in harmony with nature, such as Eaton Park by investor Gamuda Land or Eco Park, have made significant contributions to the creation of sustainable urban spaces. However, the investment required for green buildings and projects often demands higher financial outlay and more expertise from the investor. Research by the IFC indicates that the capital cost of green projects is typically at least 4% higher than that of conventional projects, with the time needed to recover these costs lasting at least three to four years.

Another challenge lies in the disparity of knowledge, construction methods, standards, labour costs, and the availability of technology—such as renewable energy solutions in buildings—along with the sourcing of materials and finishing equipment, such as unburnt bricks or Non-VOC/Low-VOC paints, in the local market. Therefore, experts advise investors to avoid a linear approach—following the steps of design, construction, and then certification. Instead, investors should set clear goals regarding which certification they aim for before construction begins, as well as the level of certification sought. This will help optimise the project in terms of sustainability, architecture, materials, and operational equipment, while also preventing unnecessary financial and resource waste due to project delays and cost overruns.

In contrast, green projects that meet sustainable standards tend to command higher rental or sales rates than conventional buildings, often achieving near-100% occupancy.

Renovating existing buildings and architectural structures, in addition to constructing new green developments, is another direction experts have highlighted in the creation of sustainable urban areas. “Renovating and restoring buildings can be more expensive than demolishing and rebuilding. However, it offers the chance to create unique, historically significant works while preserving their value over time,” said Ms. Borina Andrieu.

The development of sustainable cities, along with the full application of green technologies and energy solutions in buildings, is an area of increasing interest to both investors and the Government.

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