Industrial real estate catches up with green growth trend

DNVN - According to Mr. Vuong Quan Ngoc - Director of FPT Digital Consulting, industrial park real estate has many favorable conditions for strong growth in Vietnam but there are also many competitive challenges among investors in this industry.

With a series of moves by the Government and related ministries, green transformation in the real estate sector is being strongly promoted. Commitments to reducing emissions, protecting the environment, and sustainable development are becoming the "new rules of the game" for those who want to go far in the domestic and global real estate sector. This requires real estate businesses to have adaptive strategies to increase competitiveness.

According to IFC's report, by the end of 2023, Vietnam will have a total of 396 green-certified projects, equivalent to 26,095 apartments and 9,734,572 m2 of floor space. Most of the certified projects are in the Housing segment (39.36%) and Industrial Park (34.12%).

In 2024, the proportion of industrial parks and residential areas is expected to remain dominant, accounting for 29.6% and 20.68%, respectively, of the total 15,000,000 m2 of floor space that will be certified as green buildings.

Green real estate projects are divided into 8 main categories, with green industrial park real estate accounting for a large proportion. Source: IFC.

Vietnam has identified green industrial transformation as one of the focuses in green transformation. This shows Vietnam's commitment to environmental protection and sustainable economic development.

According to the plan, Vietnam will have about 563 industrial parks in 61 provinces and cities. To date, 397 industrial parks have been established, of which only about 7 are ecological industrial parks.

At the DxHub event with the theme "Green real estate and guidelines for applying green building certification in Vietnam" organized by FPT Digital in collaboration with the International Finance Corporation (IFC) on March 13 in Hanoi, Mr. Vuong Quan Ngoc - FPT Digital Consulting Director commented that industrial park (IP) real estate has many favorable conditions for strong growth in Vietnam but there will also be many competitive challenges among investors in this industry.

Green buildings are the way of the future to meet the requirements of many stakeholders in the supply chain, according to FPT Digital Consulting Director Vuong Quan Ngoc. Photo: FPT Digital.

Many industrial real estate investors are focusing on developing green, smart industrial parks with strict standards on environment, facilities, urban amenities... to "attract" green projects.

As a sector with a large proportion of emissions, industrial parks in Vietnam are facing a trend of comprehensive transformation, meeting the requirements of stakeholders.

Specifically, customers have green supply chain standards according to the regulations of global companies, strategic investors focus on the greenness and sustainability of the businesses they invest in.

The Government is also in the process of completing documents and policies to create a tight and effective legal framework, creating favorable conditions for industries and businesses to work towards the goal of Net Zero by 2050.

“Developing green industrial park real estate not only helps attract and retain customers but also helps optimize operations by taking advantage of resources, fuels and integrated technology... in the industrial park,” Mr. Quan emphasized.

According to Mr. Vu Hong Phong - Green building expert, International Finance Corporation IFC, developing green industrial park real estate helps businesses access capital and special incentives from international organizations and the Government for green buildings.

According to Mr. Vu Hong Phong - Green building expert, International Finance Corporation IFC, green conversion brings many advantages to real estate investors. Photo: FPT Digital.

With the IFC green building certification, BIM Land Joint Stock Company can easily issue a $200 million international green bond on the Singapore Stock Exchange. Recently, this company continued to receive an investment of $150 million from IFC through the purchase of the first local currency sustainability-linked bond in Vietnam.

According to Mr. Vuong Quan Ngoc, enterprises implementing the “green” orientation need to clearly identify priorities to meet sustainable standards, ensure carbon emission reduction, increase adaptability and resilience to climate change. At the same time, optimize the use of resources and raw materials throughout the entire production process, conserve and protect water resources as well as ensure ecological diversity...

According to Mr. Ngoc, on the green transformation path, digital transformation is a powerful support tool in the process of measuring "green" criteria through data collection, data connection, smart data analysis, and even making recommendations for real estate investors.

The digital and green “dual” transformation will help the industrial real estate industry overcome difficulties in the current context, bringing short-term benefits such as increasing revenue and reducing emissions. From there, it will move towards long-term sustainable values such as using clean energy, creating new value for businesses, creating more jobs, building a professional, healthy and sustainable industrial real estate market.

In addition, experts also provided some updated information on the green real estate market and development trends of the industry in Vietnam through some typical examples from CapitaLand, BIM Land, Vinatex, and Amata.

Attendees were also informed about popular green building certifications such as EDGE, Lotus, or LEEDs as well as the methods and processes for applying these certifications.

Guests discuss in depth with experts. Photo: FPT Digital.

DxHub™ is a series of events organized by FPT Digital to build a community, connect experts and businesses in various fields and industries. The program is a place to update, share knowledge, experience, expert perspectives and connect businesses in the field of digital transformation, green transformation and sustainable development. This event attracted the participation of many large real estate units such as PC1, CBRE, Vilandco, Viglacera... real estate operators and consultants from many prestigious consulting units across the country.

Thu An

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