COUNTRIES

Vietnam is experiencing rapid growth in the building sector. One million new apartments will be needed by 2020. Yet, there is also a strong growth projection for the non-residential sector, especially for new shopping malls, supermarkets and modern retail spaces. The real estate business is ranked second in size with total registered capital of US $6.5 billion for 2019.

Vietnam has committed to reducing GHG emissions by 25 per cent compared to current trends by 2030 with international support. In its Nationally Determined Contribution (NDC) for the Paris Agreement, the government focuses on the improvement of energy efficiency and the introduction of renewable energies in the housing sector and in commercial and service buildings. National strategies for green construction and sustainable urbanization exist, as well as various mitigation actions for the construction sector. 

See further: Vietnam country brief

Opportunities for Action

• Encourage strong sector coordination in the NDC implementation.
• Support basic energy efficiency measures which reduce the electricity demand for air cooling, ventilation and lighting and promote high performance electric appliances.
• Strengthen the application of the Vietnam Energy Efficiency Building Code (VEEBC) and extend the building coverage of the Law on Economical and Efficient Use of Energy and ensure its compliance.
• Make new low and mid-income housing projects energy efficient.
• Leverage private capital through incentives and technical support for construction and project developers.
• Invest in energy efficiency in public sector buildings.

PEEB Activities

PEEB supports the Ministry of Environment and Natural Resources on methodologies for the calculation of the GHG emissions of the housing sector.

PEEB provided trainings for policy-makers and project developers and professionals on financing mechanisms for green buildings. To support the setting up of national programmes, PEEB developed a guide for energy-efficient housing and recommendations on incentives for mobilising private investments.

PEEB supported the Global ABC on the preparation and joint implementation of the GlobalABC Regional Roundtable for Asia Pacific in Bangkok which took place in September 2019.

PEEB supports the Ministry of Construction to develop an NDC Buildings Roadmap towards 2050, outlining the short, mid and long-term targets and actions. PEEB provides advice on how to extend the scope and ambition for the building sector in the context of the legal framework on energy efficiency.

To meet the urgent housing demand and contribute to the mitigation goals, the Ministry of Construction (MOC) is setting up a large-scale Programme for low-carbon and affordable housing. PEEB is providing technical support and a 100 Million EUR loan for the implementation of this Programme.

The French Agency for Ecological Transition (ADEME) is providing technical and institutional assistance in implementing two low-carbon building pilot projects. One project is a new school building for 900 pupils with the objective to save 60% of energy, equivalent to 1.5 mil kWh/year and reduce 1,374 tons CO2/year. The other project is a new residential building for low- and average-income households, improving thermal comfort and reducing operational costs. 

Both projects will receive grant financing and benefit from technical support to conduct cost-benefit analyses of identified solutions based on life-cycle costs to assess the upfront costs for low-energy buildings and explore options for climate financing.

Results

• Financing trainings for policy-makers and practitioners and recommendations on private investments for green buildings
• Development of an NDC Buildings Roadmap
• Development of the concept and feasibility study for a national Green Housing Programme for mid-income households
• Policy paper on non-monetary incentives for mobilizing private investments in energy efficient housing
• Methodology for the calculation of the GHG emissions of the housing sector
• Technical guide on energy efficiency in housing
• 100 Million EUR financing pipeline for the national Programme for low-carbon and affordable housing