Market Intelligence
Construction Technology Vietnam

Vietnam Green Building Outlook

Vietnam’s construction and infrastructure sectors are growing, despite some near-term challenges, and many new construction projects are seeking green building elements. In 2023, Vietnam’s construction industry was valued at $95.8 billion, with a 5.4% growth rate. This sector is expected to grow at an annual rate of 7% 2024-2027, with a $30 billion national budget approved in 2023, making Vietnam a fast-growing construction market in Southeast Asia.

  • Transport Infrastructure. Vietnam expects to begin 13 major transport infrastructure projects in 2024, totaling $1.2 billion. Other large-scale infrastructure projects including airports, seaports, logistics centers, and municipal and national rail systems are under construction or planned for investment. Ho Chi Minh City alone is expected to invest $11.5 billion for highway and bridge projects between 2021 and 2025. 
  • Energy Projects. Similarly, energy infrastructure investment is expected to grow in the coming years. Under Vietnam’s Power Development Plan VIII, the country aims to invest $135 billion to boost energy generation capacity to 150 GW by 2030. Significant wind, solar, and hydropower expansions are planned.
  • Foreign Direct Investment (FDI). Vietnam has become a leading destination for global firms to set up industrial and manufacturing bases. FDI increased 32% to approximately $37 billion in 2023, supporting the commercial construction market’s growth.
  • Housing. The residential sector, which accounted for 39% of construction output in 2023, faces financial constraints, debt, liquidity issues, weak demand, and a property crisis that triggered a government crackdown on corruption. Over 1,000 real estate projects, valued at $34 billion, were suspended. However, the housing market is expected to recover quickly and experience high medium- to long-term growth in big cities and industrial zones. Nearly 19,000 new units are expected by 2025, driven by rapid urbanization and industrialization, a growing middle class, eased foreign property ownership restrictions and amendments to real estate laws.
     

Vietnam is committed to green building development, aiming for 9%-27% reduction in greenhouse gas (GHG) emissions by 2030 and net-zero emissions by 2050. The Government has implemented several mechanisms and policies for green and digital transformation, including Green Building Codes, Regulations on Energy Efficient Buildings, and Green Growth Strategies. As of Q1 2024, there are nearly 430 green-certified building projects, expected to rise to 582 by 2030. Green building certification systems in Vietnam include EDGE (38.4%), LEED (37.29%), Green Mark (18.45%), and Lotus (5.86%). The International Finance Corporation (IFC) estimates the green building sector represents an $80 billion investment opportunity, with prospects in renewable energy, transportation infrastructure, sustainable buildings, green industrial parks, and green cities.

U.S. companies have opportunities in green and sustainable planning, design, consultancy, sustainable building materials, energy-efficient products, GHG emission reduction technologies, and digital transformation technologies like artificial intelligence (AI), robotics, and building information modeling (BIM). Partnering with local firms can help U.S. exporters capitalize on Vietnam’s green growth in the construction market.

For help tapping these opportunities, U.S. firms should contact Nga Hoang, Commercial Specialist, U.S. Commercial Service Ho Chi Minh City, Vietnam at Nga.Hoang@trade.gov.
 

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