Sustainable development is no longer a choice — it is the only path forward
Sustainable development is no longer a choice, but the only path for the construction sector to adapt to climate change. At the Vietnam Sustainable Construction Forum (VSCF) held in Ho Chi Minh City in late 2025, a striking figure was shared: the city is subsiding by an average of 13 mm per year, while sea levels continue to rise. The construction sector — long regarded as the backbone of the economy — now faces a troubling paradox: the very concrete and steel that shape modern urban skylines are also contributing to the deepening global climate crisis.
The answer lies in materials
Until recently, green buildings were often associated primarily with energy and water efficiency during operation. Today, however, attention has shifted toward a quieter but far more critical culprit: embodied carbon — the emissions generated throughout the lifecycle of materials, from raw material extraction and transportation to manufacturing and construction.
Projections suggest that embodied carbon will account for up to half of total emissions from new buildings between now and 2050. This places the construction industry before an unavoidable challenge: if we are to achieve net zero by 2050, decarbonisation must begin with the very first brick and the first bag of cement.
A silent yet determined transition is underway, transforming green buildings from a “luxury concept” into a matter of survival for the future. The market for low-carbon construction materials is advancing rapidly. For example, green cement products such as Holcim’s ECOPact or low-clinker cement lines from Vicem Hà Tiên can reduce CO₂ emissions by 30–70% compared to conventional cement. Low-carbon steel is also gaining attention, with green hydrogen technologies such as SSAB’s HYBRIT initiative promising to eliminate up to 90% of emissions and create fossil-free value chains. In Vietnam, Hòa Phát is actively applying energy-saving technologies. Meanwhile, circular material models such as in Đông Triều — where coal ash from thermal power plants is transformed into hundreds of millions of unbaked bricks annually — not only reduce landfill pressure but also save hundreds of thousands of cubic metres of clay.
“Green” is no longer merely a matter of corporate social responsibility; it has become a rigorous market filter. A truly green urban development today is not simply one with more trees, but a fully integrated ecosystem — encompassing smart energy systems, water reuse, and microclimate optimisation.
Sharing insights on The Aspira project, which recently achieved EDGE certification, Mr. Bùi Bá Nghiệp, CEO of Saigon High Rise, noted that by selecting appropriate materials, the project reduced embodied carbon in construction materials by more than 40%. This demonstrates that Vietnamese developers are beginning to take proactive steps, rather than waiting for mandatory regulations.
Market reality also shows that Grade A and B buildings without green certifications are increasingly facing declining rental values and rising vacancy rates, as tenants turn away to meet their own ESG commitments. In contrast, green projects tend to achieve higher absorption rates and significantly faster sales.
A new benchmark for real estate value
A common misconception persists that green construction inevitably leads to sharply higher costs. In reality, data tells a different story. The additional investment cost typically ranges from just 2–3% (according to IFC) or 3–8%, while green buildings can deliver 15–30% energy savings, 30–50% water savings, and up to 70% reductions in waste treatment costs. Many green solutions achieve payback within 5–7 years through operational cost savings alone. According to the World Green Building Council, the asset value of green buildings can increase by up to 7% within five years, driven by lower operating costs, energy efficiency, and stronger long-term value retention.
“Compared to conventional projects, green developments tend to retain their value better in the secondary market,” added Mr. Nguyễn Văn Đính, Chairman of the Vietnam Association of Realtors (VARS).
The real cost challenge does not lie in new construction, but in retrofitting existing buildings. The cost of greening older buildings can reach up to 50% compared to building new. This underscores the urgent need to integrate sustainability considerations from the earliest design stages. Within the spectrum of green materials, one particularly promising direction increasingly highlighted by experts is the use of engineered wood, especially cross-laminated timber (CLT).
Mr. Nguyễn Quốc Khanh, Chairman of the Vietnam Timber and Forest Products Association, emphasises that wood is the only truly renewable building material and requires far less energy to produce compared to concrete. Globally, plans are already underway for timber buildings up to 70 storeys tall, demonstrating that wood can realistically replace steel and concrete in the future. In Vietnam, with an increasingly完善 legal framework and agreements such as the VPA with the European Union, access to legal and sustainable timber is opening new opportunities for locally rooted green architecture.
The role of policy in accelerating the transition
To genuinely accelerate the green construction market, Vietnam needs more decisive policy actions. A priority is the early introduction of a national “Green Standards” framework for construction materials, supported by clear ecolabelling systems. Integrating green material criteria into real estate credit packages and green bond issuance would also provide critical financial tools to support businesses. In addition, the development of construction waste recycling centres in key economic regions is urgently needed. With up to 89% of construction waste having recycling potential, this represents an enormous resource that should not be wasted.
