Accelerating the growth of green and smart buildings in Vietnam

Time is ripe for vietnam to accelerate the greening of its buildings

In 2019, the International Energy Agency (IEA) reported that the building sector accounts for approximately 28% of global energy-related carbon dioxide emissions from operational use. Major cities worldwide today are countering the impact by developing and greening existing buildings through efficient energy consumption and the integration of renewable energy. When office buildings meet green building standards, not only do they promote sustainable urban development and improve air quality, but also contribute to national sustainability goals.

According to global real estate firm Savills, green-certified buildings in Vietnam both optimize occupancy rates and command rental prices that are 10% to 16% higher than those of conventional buildings. This presents a great opportunity for Vietnam to sustainably manage its growing office market, given that investors in the country prefer Leadership in Energy and Environmental Design (LEED) and Green Mark certifications for Grade A and B office buildings. It also opens new doors for Vietnam to realize its net-zero ambition by 2050.

However, the number of green projects in Vietnam – around 400 buildings – remains modest compared to its neighbors. A 2022 report by real estate consultancy Knight Frank indicated that only 25.6% of office buildings in Vietnam are green-certified, compared to 87.2% in Singapore, 72% in Australia, and 38% in Kuala Lumpur, Malaysia.

Furthermore, urban population growth has caused the demand for commercial buildings to skyrocket, which poses a significant challenge in providing ample office space. In the face of rising demand for commercial and sustainable office space, there is an opportunity for building owners and developers to go green for higher rental yield. 

One of the most effective remedies for both existing offices and new buildings is the implementation of sustainable and smart solutions. As a leading provider of sustainable energy solutions in the Asia-Pacific region, SP Group offers deep support for building owners and management entities to optimize energy usage, reduce carbon emissions, and enhance user experience using smart metrics.

3 notable sustainable solutions to green buildings from SP Group

1. District Cooling

SP’s cooling expertise spans both commercial and industrial sites. In Singapore, SP operates the world’s largest underground cooling network in the Marina Bay district, which, when expanded by 2027, will connect more than 30 buildings and developments. This will reduce carbon emissions by up to 25,000 tonnes annually – the equivalent of removing 22,700 cars from the roads.

SP has also widened the use-case of district cooling for industrial customers. In 2022, SP announced a partnership with STMicroelectronics (ST) to design, build and manage their first industrial district cooling system at one of its manufacturing facilities in Singapore. When operational in 2025, the system is expected to reduce ST’s carbon emissions by up to 120,000 tons per year.

SP has also recently brought its cooling capabilities to Thailand, operating its first district cooling project in the country at Government Complex Center Zone C in Bangkok. This will enable the building to save approximately 40 million baht (S$1.57 million) per year on electricity costs, achieve 20 percent energy savings and reduce carbon emissions by up to 3,000 tons annually. Especially for Vietnam’s warm weather in the south, SP’s experience in sustainable cooling can provide both commercial and industrial customers comfort, the green way.

2. GET^TM Insights

Collecting energy usage data from various sources, such as smart meters or solar power systems, is a key step towards a smart and green building. However, the manual reading of meters requires building owners to deploy additional manpower to regularly track the utilities of hundreds of tenants in person, which can be time consuming and may stretch resources. This may also lead to inaccuracies related to meter readings that could result in erroneous billings.

Using SP Group’s Green Energy Tech (GET™) Insights, building owners will be able to view and analyze utilities data on a single dashboard to easily optimize costs and energy usage. For a building developer with 16 commercial and retail properties in Singapore, GET™ Insights enabled a central overview of electricity consumption across all its assets, allowing it to drive its carbon reduction strategies effectively through smart building management.

3. GET™ Control

GET™ Control makes air conditioning optimization in Vietnam a breeze. A smart system powered by Artificial Intelligence (AI) and the Internet of Things, it maximizes the energy efficiency of air-conditioning in buildings based on changes in occupancy patterns and ambient weather conditions. GET™ Control’s cloud-based AI is also constantly learning from the building's energy usage patterns and actively adjusts indoor air temperatures to cool spaces evenly. Easily integrated with any Building Management System, GET™ Control can help buildings potentially save up to 30% of cooling energy and reduce carbon emissions by 18%.

The system has been implemented in Republic Plaza, a 66-storey skyscraper in Singapore’s Central Business District, through a pilot project covering an office space of approximately 15,000 square feet. The result: 18% in total energy savings building-wide and a 15% improvement in the building’s occupant thermal comfort level. Similarly, SP Group's Vietnam office at the Melinh Point Tower also achieved nearly 15% of energy savings, and close to 8% reduction in cooling energy required after installing GET™ Control.

By leveraging these innovative technologies, building owners and management entities can optimize energy usage efficiency and reduce their carbon footprint without the need for costly and time-consuming redevelopment. This not only aligns with global sustainability efforts, but also contributes to creating healthier urban environments to empower Vietnam’s ambition of being net-zero in 2050.