Green Buildings in Vietnam: Comprehensive Market Assessment by Solidiance and Vietnam Green Building Council
Ho Chi Minh City, Vietnam, August 28, 2013 --(PR.com
)-- Solidiance partnered with Vietnam Green Building Council to produce a newly released white paper on Vietnam's Green Building market. The white paper reveals that the green building sector in Vietnam is still at an early stage of development. As Vietnam's government is heavily focusing on economic development, the green agenda is still not yet adequately sought after. A lack of proper knowledge about green the actual costs and benefits of green building in the market also serves as an additional hindrance contributing to the sector's slow development.
A few efforts to promote green building has, however, been initiated by different stakeholders. After a series of laws passed to promote energy efficiency with inconsistent regulatory enforcement during the 2005-2012 period, Vietnam's Ministry of Planning and Investment with participation of various relevant line ministries including the Ministry of Construction, are now targeting to reduce annual energy consumption and GHG emission by 2.5-3% (per unit GDP) until 2020 and 2-3% from 2020-2030, respectively, through their Green Growth Strategy. On the other hand, VGBC developed a local certification named LOTUS rating tool, in which relevant training programmes are initiated and financed by multilaterals through Vietnam's NGO network. The endeavors being carried out resulted in the increase of LOTUS registrations which outnumbered LEED, due to LOTUS' stronger relevance to the Vietnamese market for its locally customized conditions.
As the manufacturing sector being a major destination for FDI inflows - reaching nearly US$8 billion in 2011 - Vietnam's green building market is currently dominated by factories which account for nearly half (42%) of all certified green buildings, followed by offices (22%) and hospitalities (19%) segments with the existing buildings achieving LEED, LOTUS, Earthcheck, GreenMark, and GreenStar certifications. The reason behind this domination by the factory segment is associated with multinational corporations' prowess in the green sector. Multinational corporations are leading the green building adoption in Vietnam due to the increasingly issued global guidelines for their overseas factories by headquarters which are typically based in countries with mature environmental laws.
With the current state of the industry, opportunities exist in insulation and lighting sectors where only limited players are currently operating in the market. Consulting, surfacing and architectural service industries are however, showing signs of saturation as they are already seeing high growth in the market.
As to the market outlook of Vietnam's green building industry, Heiko Bugs, the Partner Asia of Solidiance remarks, "while there are uncertainties about the speed of economic recovery, foreign investment is returning and companies are once again looking for growth opportunities. Buildings consume up to 40% of energy and more sustainable ways to develop and construct buildings will drive future change in Vietnam."
More comprehensive insights are disclosed within the Vietnam's Green Buildings white paper - i.e. the possible strategies to develop the industry from its infancy, regulatory framework overview, SWOT analysis, available opportunities and potential future of the industry, different adoption of the existing green certification, etc. The full version of the white paper is free to download on: http://www.solidiance.com/whitepaper/is-there-a-future-for-green-buildings-in-vietnam.pdf.
The Vietnam's Green Building white paper is produced for information purposes only by Solidiance through a partnership with Vietnam Green Building Council.
Solidiance is a dedicated B2B growth strategy and marketing consultancy firm with focus on Asia. The company has been helping Fortune 500 to expand revenues in Asia market through evidence-based strategic marketing advice. Solidiance's expertise is focused on industrial applications, green technology, healthcare and technology sectors. Solidiance has offices in eight different Asian countries: China, India, Indonesia, Malaysia, Myanmar, Singapore, Thailand, and Vietnam.
Marketing contact information:
Regional Executive Marketing Communication of Solidiance
Company website: www.solidiance.com
About Vietnam Green Building Council
Vietnam Green Building Council (VGBC) is an international non-profit organization, established in 2007 to raise awareness and build capacity for the development of green building in Vietnam. VGBC's goal is to act as a catalyst encouraging government, academia and private sector cooperation to achieve a more sustainable built environment.
Marketing contact information:
Administration Officer of VGBC
Company website: www.vgbc.org.vn