Report Overview

An increasing focus on the compliance with the government’s stringent policies and regulations to meet national sustainability goals and economic incentives are expected to drive Vietnam Green Building Market during the forecast period between 2025 and 2031.

Vietnam Green Building Market – Industry Trends & Forecast Report, 2031

Vietnam Green Building Market size was estimated at USD 20.55 billion in 2024. During the forecast period between 2025 and 2031, Vietnam Green Building Market size is projected to grow at a CAGR of 6.5% reaching a value of USD 31.94 billion by 2031. Prominent drivers of the market include rapid urbanization, growing environmental awareness, and increasing government focus on sustainable development. The country's commitment to reducing greenhouse gas emissions by 2030 and achieving net-zero emissions by 2050 has led to the introduction of Green Building Codes and energy efficiency regulations, which are encouraging the adoption of green practices across construction segments. Vietnam’s infrastructure boom, coupled with expanding industrial zones and foreign direct investment, particularly in transport, energy, and manufacturing, has significantly boosted green building adoption. The surge in demand for certified green industrial parks, especially for export-oriented factories, has led to a rise in green certifications, with 163 buildings certified in 2024 alone, more than double the previous year. By Q1 2024, the country had nearly 430 green-certified buildings, a number projected to exceed 582 by 2030, far surpassing original targets. Certification systems such as EDGE, LEED, Green Mark, and LOTUS are widely recognized, with EDGE accounting for the largest share. This momentum is supported by government incentives, including tax reductions and subsidies, alongside digital transformation trends that leverage technologies like AI, robotics, and BIM. United States and international companies have growing opportunities in sustainable design, energy-efficient materials, and smart construction technologies, especially through partnerships with local developers. Key urban centers such as Ho Chi Minh City, Hanoi, Binh Duong, Bac Ninh, and Hai Phong are leading the green transition, with Ho Chi Minh City topping the list in certified green floor area. Industrial green buildings have emerged as a dominant force, driven by manufacturing relocation, increased production capacity, and the need for globally compliant facilities. Despite earlier challenges in the residential sector, recovery is underway due to urban expansion, a growing middle class, and legal reforms that ease foreign property ownership. Collectively, these factors underscore Vietnam’s accelerated progress toward sustainable urban development and position the country as a rising leader in the Southeast Asian green building landscape.

Green Building – Overview

A green building is a structure designed and constructed to minimize environmental impact through efficient use of energy, water, and resources. It incorporates sustainable practices such as renewable energy use, waste reduction, and improved indoor air quality. Green buildings aim to reduce carbon emissions, lower operating costs, and enhance occupant well-being, while promoting long-term environmental sustainability.

Vietnam Green Building Market

Growth Drivers

Government Policies and Regulations

The government has introduced a range of supportive measures, including tax rebates, reduced licensing fees, and expedited project approvals for environmentally friendly developments. The Ministry of Construction’s endorsement of the LOTUS certification system and collaboration with the Vietnam Green Building Council (VGBC) ensures regulatory standards are upheld. These policies are encouraging developers to adopt green practices. Furthermore, Vietnam’s strategic partnerships with international organizations like the Asian Development Bank and the World Bank are channeling substantial investment into green infrastructure. In 2024, government-led initiatives, such as tax exemptions and subsidies for sustainable projects, helped attract over USD 6.3 billion in foreign direct investment, much of it targeting green industrial zones. These regulatory and policy frameworks play a pivotal role in driving Vietnam’s transition toward a low-carbon economy by 2050.

Challenges

High Initial Costs

High initial costs pose a significant challenge to the growth of the Vietnam green building market. The upfront investment required for sustainable materials, energy-efficient technologies, and green certifications is often substantially higher than traditional construction methods. This financial barrier can discourage developers and investors from adopting green building practices despite long-term savings and environmental benefits. Additionally, the lack of widespread awareness and limited availability of affordable green technologies further restrains market expansion. Consequently, these high initial costs slow down the overall adoption of green buildings in the Vietnam, impacting the market’s growth potential.

Impact of Escalating Geopolitical Tensions on Vietnam Green Building Market

Escalating geopolitical tensions can significantly impact Vietnam's Green Building Market. Disruptions in global supply chains may lead to delays or increased costs for sustainable construction materials and energy-efficient technologies, many of which are imported. Rising uncertainty can also deter foreign direct investment, slowing the development of green industrial parks and infrastructure. Additionally, shifting trade alliances and energy security concerns may force Vietnam to reevaluate its green energy imports and policy priorities. Despite these challenges, Vietnam’s strong commitment to sustainable development and support from international organizations could help cushion the market against prolonged geopolitical instability and maintain green growth momentum.

Vietnam Green Building Market

Segmental Coverage

Vietnam Green Building Market – By Product Type

Based on product type, Vietnam Green Building Market is divided into Interior Products, Exterior Products, and Building Systems segments.

Vietnam Green Building Market – By Application

Vietnam Green Building Market by application is divided into Residential, Commercial, Industrial, and Institutional segments. The residential segment holds the largest share of Vietnam Green Building Market by application. The segment’s market dominance is fueled by rapid urbanization, increasing environmental awareness among residents, and the government's push for sustainable urban development. Developers are actively incorporating energy-efficient systems, water-saving features, and eco-friendly materials to meet growing demand for green housing. These buildings offer long-term cost savings, improved living conditions, and reduced environmental impact, making them attractive to both residents and investors. Smart technologies, solar energy solutions, and green spaces are becoming standard in modern residential projects, aligning with international sustainability standards. Northern Vietnam, particularly cities like Hanoi and Hai Phong, leads this transformation, driven by supportive policies and strong market demand. Large-scale projects like Sun Urban City in Ha Nam exemplify this shift, blending luxury living with ecological design. Collaborative efforts, such as the partnership between CBRE Vietnam and VSSE to promote Zero Energy Buildings, further emphasize the sector’s commitment to energy efficiency and sustainable growth.

Vietnam Green Building Market – By End User

On the basis of end user, Vietnam Green Building Market is segmented into Private Developers, Government Bodies, Facility Management Companies, and Educational & Healthcare Institutions.

Competitive Landscape

Major players operating in Vietnam Green Building Market include Saint-Gobain Vietnam, Công ty TNHH Mapei Việt Nam, Knauf Vietnam Co., Ltd, Nichias Vietnam Co., Ltd, Akzo Nobel Vietnam Ltd, CÔNG TY TNHH KINGSPAN, Siam City Cement (Vietnam) Limited, Phuong Nam Insulation Company Limited, Mitsui & Co. Vietnam Ltd, and ABB Vietnam. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2025 - Vietnam Sustainability Social Enterprise Co., Ltd (VSSE) and CBRE Vietnam signed a Memorandum of Understanding (MoU), to strengthen collaboration under the Zero Energy Building (ZEBHub) project. The partnership aims to promote zero-energy and energy-efficient buildings by supporting pilot projects like Hanoi’s Horison Tower and developing training, assessment, and communication initiatives.

Scope of the Report

By Product Type

• Interior Products

• Exterior Products

• Building Systems

By Application

• Residential

• Commercial

• Industrial

• Institutional

By End User

• Private Developers

• Government Bodies

• Facility Management Companies

• Educational & Healthcare Institutions

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