Manufacturing Success Starts with Greener Industrial Parks
According to Thanh Pham, CBRE’s Associate Director of Research and Consulting, while there is no clear evidence of rental differences at certified ‘green’ industrial projects in Vietnam, tenants are increasingly showing a preference for sustainable developments focused on renewable energy.
Several industrial real estate projects, such as Core5 in Haiphong, Logos in Bac Ninh, a ready-built warehouse (RBW) in Phu Tan Industrial Park (Binh Duong province), and another in Xuyen A IP (Long An province), have registered for LEED certification, an international standard for energy-saving and environmentally friendly buildings. Frasers Property Vietnam also announced that its Eco Logistics Centre in Binh Duong province became the first LEED-certified RBW in Vietnam, recognized by the US Green Building Council (USGBC) under the LEED v4 Building Design and Construction: Warehouses and Distribution Centres rating system.
Edwin Tan, Deputy CEO at Frasers Property Vietnam, stated that achieving this certification validates the company’s asset strategy and contributes to the country’s sustainability advancements. The Eco Logistics Centre was designed and constructed in accordance with LEED’s framework, incorporating practical, measurable strategies for optimizing energy performance, energy and water efficiency, advanced commissioning, and sustainable materials selection. The facility, owned by Chuong Duong Beverages JSC and managed by Frasers Property Vietnam, occupies over 7.5 hectares and offers warehousing space to sustainability-minded tenants. Frasers
Property Vietnam aims to certify all its owned and managed industrial facilities across the country, totaling over 1 million sq.m of international-grade industrial facilities across more than 180 ha of industrial land in both north and south Vietnam. Jeerasage Puranasamriddhi, Chief Supply Officer at Pandora Thailand, mentioned that most retailers require LEED qualification for their buildings and factories, prompting building and industrial park owners to incorporate green and environmental protection criteria to attract qualified tenants. Pandora’s factory in Binh Duong, certified with LEED Gold qualification, utilizes 100% recycled energy and is expected to create over 6,000 jobs and produce 60 million products annually. Similarly, Lego Group is constructing its first carbon-neutral factory in Binh Duong with an investment of over $1 billion. In line with the green and sustainable development trend, Sembcorp Industries and Becamex announced plans to establish five new Vietnam-Singapore Industrial Parks (VSIPs) with decarbonization solutions, including rooftop solar systems, solar farms, and green-certified buildings.
These smart and sustainable parks aim to have a low carbon footprint and utilize real-time tracking devices for enhanced operational visibility. Ho Chi Minh City’s Management Board of Export Processing and Industrial Zones also unveiled a plan to develop green industrial zones between 2023 and 2030, with the first five zones being piloted for conversion to green criteria. According to a survey by the Ministry of Construction, the majority of green projects in Vietnam are industrial projects, with 55% of green buildings in the country belonging to the industrial sector. The survey also revealed that 56% of LEED-certified projects are factories or offices in industrial parks, and 4% are warehouses, while 26% of LOTUS-certified projects are in the industrial sector. Trang Le, Head of Research and Consulting at JLL Vietnam, predicts an increasing demand for green initiatives and sustainable development in future industrial real estate projects in Vietnam due to the commitment of multinational companies to sustainability.