NEWS &
EVENTS

A young and growing population in Vietnam means there is a huge demand for new housing. Especially young urban families with one or two children are in critical need for affordable housing. Just until 2025, more than 100,000 apartments are needed.

Following the success of previous programmes, the Vietnamese Ministry of Construction (MOC) is preparing a new National Housing Programme for low-income households. For this new programme, the Ministry wants the housing solutions to be highly energy efficient. This will save greenhouse gas emissions and contribute to the country’s Nationally Determined Contribution (NDC) targets, while reducing energy bills for its inhabitants.

The concept for the new Housing Programme aims to stimulate both, supply and demand:

• Green loans to mid-income households with a duration of about 15 years (market demand)
• Green credits to energy efficient housing investors within a term of 3-5 years (market supply).

PEEB supports the development of the new Housing programme: the French Development Agency AFD analyses appropriate financing schemes, and the German Technical Cooperation GIZ conducts a Technical Feasibility Study. The French Environment and Energy Management Agency ADEME contributes its experience working with housing developers in Vietnam on well-adapted bioclimatic design solutions.

In June 2019, the AFD energy task team leader, Mr. Fabrice Juquois, visited the Ministry of Construction in Hanoi and the President of the Vietnam Real Estate Association (VNREA), Mr. Nguyen Tran Nam.

There are signs that public financing to the real estate market will be tightened, moreover, the real estate market is showing positive signs towards green buildings. Nguyen Tran Nam, president of the Vietnam Real Estate Association, pointed to the great potential for green buildings. In addition, green building opportunities do not solely depend on businesses, but also on buyers’ awareness and decisions.

Therefore, PEEB´s technical assistance to the Ministry of Construction to review the legal framework and the development of green building opportunities with additional funding comes just at the right time. 

(published 28.03.2019)