Shortage of energy efficiency standards in housing

According to Mai Thi Lien Huong, president of the National Institute of Architecture, the construction industry makes up more than 30 per cent of global carbon emissions and is a key factor in the climate change debate.

"The construction of green social housing reduces emissions and improves quality of life without increasing house prices," Huong said.

Nguyen Duc Vinh, deputy head of Social Housing Management and Development Department under the Ministry of Construction, said, "Housing quality is improving, with many old and degraded housing units replaced by new spacious housing units, new urban areas, and high-rise apartment buildings."

The National Housing Development Strategy states that housing must ensure safety and meet certain conditions of construction quality and the environment, including being capable of responding to climate change, using energy economically, and being sustainably developed.

"However, applying standards on efficient energy use and environmental protection in the housing sector is still limited. Current energy-efficient housing projects are all set by developers and implemented by themselves," said Vinh.

"The main reasons could be a lack of awareness and the investment cost of this type of housing project, which is often higher than normal. There is a lack of communications on the benefits of energy-saving housing projects, so developers and buyers are less interested in this segment," he said.

Vinh also offered some solutions, such as studying and supplementing housing standards and regulations for new designs and construction techniques.

"New housing construction designs and technologies, new materials, and digital technology will contribute to reducing construction costs, energy savings, and low emissions," added Vinh.

Luu Thi Thanh Mau, CEO of Phuc Khang Investment and Construction JSC, recommended the Ministry of Construction issue a set of tools to evaluate green buildings or green building projects in Vietnam.

"We need regulations for a mandatory roadmap to implement green buildings, along with legal regulations on policies such as preferential interest rate loans, floor area bonuses, and additional incentives for green bond issuers," said Mau.

Many other activities demonstrating the Ministry of Construction's commitment to supporting and promoting sustainability and energy efficiency will take place during Vietnam Green Building Week (October 3-4).

The Ministry of Construction (MoC) has been demanded to coordinate with other ministries and sectors to minimise processes and procedures for implementing social housing projects.

The flow of foreign capital invested in real estate in the first four months of the year has been impressive, but the domestic market has not yet fully recovered.

Starting August 1, 2024, three key laws - the 2024 Land Law, the amended Housing Law, and the amended Real Estate Business Law came into effect.

Affordable housing is always a concern of foreign developers in a big property project. The reason for not carrying out social housing may be quite low profit in exchange for extremely long legal processing time.