Vietnam Real Estate Association says “Green construction incentives are needed”

Do Viet Chien, General Secretary of the Viet Nam Real Estate Association says that the Government should offer preferential policies for property firms which develop green urban areas, Speaking at a forum held in Hanoi recently, Chien said green construction development in Viet Nam had a lot of potential but also posed challenges for the building industry as it is still a new concept.

According to Chien, “Viet Nam lacks technical solutions and green materials, while facing weak management in operating green constructions. The country’s legal framework does not have incentives for green building development.” He added that the participation of financial institutions and energy saving funds to encourage green building is still limited.

Chien said, “From a practical point of view, green development is a growing trend, which is the way we have to go.” Chien suggests that the Government encourage investors to develop green buildings. Borrowing and investing in such constructions should be made easier and it should also be made mandatory to develop green buildings. As an example, Chien suggested that developers set aside 5 ~ 7% of land for green buildings.

Nguyen Hong Thuc, Director of the Research Institute for Resettlement of Viet Nam, said the first new urban area in Hanoi was built in 1996. At that time, people were still unsure of apartments and preferred low-rise accommodation. After many years of urbanization, apartment buildings have become popular, but as urban areas spread, the city faces a crisis.

Thuc said that “Now, we are in the midst of an urban crisis, which is a living environment crisis. So, to build a good urban area, we need the participation of not only the Government, but also professionals, people and businesses.” She said that on the flip side, Vietnam was in the early stages of green construction, which can’t catch up with rapid urbanization.

To improve the quality of life, Thuc said that more green buildings were needed. However, in order to do this in Vietnam, there was a need for social consensus. Therefore, it was necessary to improve awareness of green buildings and green urban areas. “In my opinion, three important factors for a green building include fuel saving, open space and mindset changing.”