Vietnam is home to over 300 green buildings, but that figure is much lower than the country's potential, according to a construction official at the Vietnam Green Building Week 2023.

Themed 'Green Building Development Promotes Green Transformation in Construction Industry: Opportunities and Challenges,' the event was held by the Ministry of Construction in coordination with other units on Thursday in Ho Chi Minh City,

Speaking at the event, Nguyen Tuong Van, Deputy Minister of Construction, said that state management agencies have encouraged businesses to develop green buildings on a voluntary basis and Vietnam has yet to introduce mandatory regulations on green building development.

Currently, the country is home to about 300 green buildings with a combined floor space area of 7.2 million square meters. These green buildings include hotels, shopping malls, workshops, offices, and the headquarters of state agencies.

Van revealed that Ho Chi Minh City took the lead in the number of green buildings at 67 units. It ranked second in terms of total green floor space with 1.3 million square meters.

Since the number of green buildings is far short of the total number of projects being built annually, more efforts should be made to beef up the quantity of such buildings in the years ahead, Van said.

Despite Vietnam’s rapid urbanization, investors remain cautious about developing green buildings due to high costs and their incomplete perception of the value of environment-friendly construction, Maria Joao Pateguana, unit head for private sector development at the Asian Development Bank (ADB) told a session about green finance at the event.

She added that Vietnam faces a shortfall of green finance providers, making it difficult for businesses to access green funding.

Therefore, the ADB will support businesses in approaching green finance, she elaborated.

Approaching green finance will enable Vietnamese firms to undergo transformation, protect the environment, and enhance their financial capacity, said Do Ngoc Diep, who manages a green building and climate change adaptation program under the International Finance Corporation (IFC).

In the year to date, the IFC has invested over US$300 million in green buildings in Vietnam, Diep said.

Last year, the IFC registered to buy some $44 million worth of bonds issued by Vietnamese property developer Nam Long Investment JSC to help the latter develop sustainable apartments for workers in a locality near Ho Chi Minh City.

Diep suggested that local businesses develop green buildings in order to easily approach green funding offered by financial institutions.

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