HO CHI MINH CITY: Investors in new shopping centres and retail spaces in Vietnam are gradually paying more attention to green standards from the very first steps of development, experts say.

As environmental, social and governance (ESG) investing gains traction, the focus on sustainability has become a top priority for investors, developers, and property owners in Vietnam.

The shift emphasises the importance of aligning strategic goals with market demands for more sustainable practices rather than just focusing on luxury developments.

According to a forecast by real estate specialists Cushman & Wakefield, by 2027 there will be a total of three million square metres of retail supply serving the two largest cities of Ho Chi Minh City and Hanoi.

Projects that are in the development stage such as Lotte Eco Smart City, Empire City in the Thu Thiem new urban area of Ho Chi Minh City, or projects in cell C1-CC1 of the Starlake Tay Ho Tay new urban area in Hanoi are working towards Leadership in Energy and Environmental Design (LEED) green-building certification.

Similarly, quite a few commercial centres under construction, such as Tien Bo Plaza in Hanoi, have also registered for the LEED standards assessment.

“The addition of green-building certifications can help enhance the developer’s corporate image and the reputation of the developments. Another advantage for investors and developers is that environmentally friendly commercial buildings often have higher rents, better market prices, and are also more resilient to any market downturn,” said Trang Bui, country head of Cushman and Wakefield Vietnam.

Shopping malls are diversifying their offerings beyond shopping to attract visitors of all ages and lifestyles, incorporating food and beverage, fashion, supermarkets, cinemas, children’s play areas, gyms, exhibition venues, music venues, green spaces, and even aquariums.

Brands like Pizza 4P are also embracing green certifications, with the Pizza 4P store at Lotte Mall West Lake Hanoi recently earning LEED Gold certification for its interior design and construction.

“Investors, developers and commercial property owners in Vietnam must now understand the fact that over time, the principles of responsible investing and ESG investing are becoming more and more popular. And this has also pushed investors and developers to transform their strategic goals of sustainability to a top business priority in line with capital-market requirements, rather than simply developing luxurious buildings,” Trang said.

 - ANN