GREEN BUILDING INDUSTRY In Vietnam, 42% of the certified green buildings are factories owned by the multinational corporations, majorly due to the international green global guidelines they tend to adhere to. With another 20% of green buildings coming from the office building segment, MNCs have significantly impacted most of roughly 62% of green construction in Vietnam. Another important sector is hospitality which accounts for 19% of the certified green buildings. Hotels reap great benefits by going green not only because they save on operational costs, but also due to the fact that being green is a major marketing angle. The residential sector accounts for only 3% of the green buildings which is problematic. The issue stems from the lack of understanding of benefits amongst buyers. Low Electricity Price, Underdeveloped Regulatory Framework are Among the Main Hindrances Despite the positive market drivers and support from several industry sectors, the green building growth in Vietnam has a set of challenges behind its early developmental stages. Low electricity price in Vietnam serves as a big disincentive to promoting energy efficiency , and the government has not yet provided property developers with the short-term benefits either. The electricity tariff hikes have been planned by the government, but they will be done gradually to limit the impact on inflation, production, and low-income consumers. Furthermore, the misperception of ‘building green’ as being more expensive is still prevalent. Property developers tend to focus on the short-term costs rather than long-term savings available to building users, and this is partly due to the lack of proper knowledge as well as the available skills in the market to pin down the topic correctly. There are also a low awareness and price-sensitivity among the domestic companies which add up to the list of growth hindrances in the green building industry in Vietnam.
Posted on: Mon, 23 Sep 2013 07:31:40 +0000
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