Studies by IFC (a member of the World Bank Group) indicate that buildings account for as much as 40% of global greenhouse gas emissions, including 28% stemming from building raw materials. To reach its targets of becoming a high-income country by 2045 and achieving net-zero emissions by 2050, as committed by Viet Nam, tackling climate change challenges is imperative.
IFC’s emphasis on investment in building climate change–adaptive infrastructure is one of its proposals for Viet Nam’s green growth strategy, while the other two proposals are harmony between economic growth and emissions reduction and accelerating the ocean economy for sustainable growth and resilience. For the construction sector, the EDGE green building certification system was launched in Viet Nam after 10 years. Today, the system has certified millions of square metres of floor area and hundreds of projects, consolidating a more structured pathway for reducing CO2, emissions and saving electricity and water during operations.
IFC’s green project implementation experience in some developing countries worldwide has proven effective. One example is Colombia, where IFC has invested hundreds of millions of USD via green bonds to support developers in deploying green buildings and offering mortgage loans to homebuyers. To raise public awareness, dozens of events were organised with participation by hundreds of property developers, media agencies, and citizens.
So far, Colombia has certified nearly 18 million square metres of high-rise residential floor area, and 200,000 homes under EDGE green building certification standards. In addition to realising emissions-reduction targets, EDGE-certified buildings also enable users to save on operating expenses and energy and water costs.
In Viet Nam, the Environmental Protection Law 2020 has already stipulated green credit and bond provisions to encourage green building development and climate change response. Decision No. 21/2025/QD-TTg, dated July 4, 2025, of the Prime Minister also explicitly sets out green building criteria as benchmarks for the implementation of green credit and bonds.
For domestic construction activities meeting green building requirements, international credit institutions, such as Global Climate, commit to providing free EDGE technical consultancy; while Standard Chartered supports 100% of valuation fees and legal service fees, and offers complimentary insurance. Domestic banks, including Agribank, commit to lending at 6% interest per year for the first two years; VietinBank lends at 5.8% interest; BIDV deploys a 10,000 billion VND loan package with preferential interest rates; and TPBank applies 0% interest for the first three months of the loan period.
Additionally, to encourage circular economy models, minimise greenhouse gas emissions, and save resources, the Government has established the Viet Nam Environmental Protection Fund under the Ministry of Agriculture and Environment and launched preferential loan programmes for enterprises, manufacturers, and citizens participating in green transition activities and circular economy
The fixed interest rate offered by the fund to organisations and individuals is 2.6% per year, for up to 10 years. In particular, eligible borrowers in the construction sector are organisations and individuals investing in the production of non-fired building materials from industrial ash waste; fuel pellets from recyclable waste; and projects stipulated under Article 55, Clause 3 of the Environmental Protection Law 2020.
Incentives from bank credit and support funds suggest new pathways for the construction sector in the near future. Access to capital sources will help the industry promote the development of green buildings nationwide; strengthen the resilience and recovery capacity of buildings against climate risks and climate change impacts; enhance resource-use efficiency; and foster the growth of green social housing model.
However, many barriers must be removed for organisations and individuals deploying green building projects to access credit capital sources. These barriers include inconsistent, overlapping regulations in the legal framework with a lack of detailed guidance; the absence of a specific, unified set of standards to evaluate green buildings; and complex, non-uniform appraisal, and assessment procedures among capital-managing agencies.
Additionally, the lack of information on project developers, coupled with the limited appraisal and assessment capacity of capital-managing agencies, has further constrained access to funding for enterprises and individuals. Moreover, high early-stage investment costs, as well as the demanding competency and technical-qualification requirements for operating personnel, pose considerable challenges for investors in this field.
