"Operating real estate projects in accordance with ESG standards enables utility systems to function effectively and ensures smart control of energy, water, and waste conumption," said a TNPM expert.
The “Key" to Unlocking Sustainable Competitive Advantage
In recent years, Vietnam's real estate market has witnessed a significant shift in consumer awareness and behavior. According to a PropertyGuru survey conducted at the Vietnam Real Estate Conference (VRES 2024), 88% of respondents were willing to pay more for green living spaces, with 39% agreeing to pay up to 10% more and 49% willing to pay 5% more.
This indicates that homebuyers are not only concerned about construction quality but also value a civilized living environment that harmonizes material, spiritual, and environmental values. This shift in consumer demand is encouraging enterprises to adopt new technologies, management models, and environmentally responsible practices.
Consumers are increasingly concerned about the living environment when purchasing a home.
The "green" criterion not only attracts consumers but also becomes an increasingly distinct competitive advantage for businesses. According to a Viet Research survey, 75% of enterprises stated that revenue from sustainable development services now accounts for 25–50% of their total income. In real estate, data from CBRE (2022) shows that buildings certified as green command rental rates 6–10% higher and occupancy rates 4–8% higher than the average market.
In Vietnam, the 2020 Environmental Protection Law and the National Green Growth Strategy for 2021–2030 have laid the initial legal framework for green real estate. However, the implementation of green standards is still mainly encouraged rather than mandated.
Ms. Pham Thi Thuy, an expert from TN Property Investment and Real Estate Management Joint Stock Company (TNPM), stated, "Although not yet a legal obligation, green operations have become a default standard in the international market, driven by three key pressures: global integration requirements, criteria from international investors and financial funds, and changes in consumer behavior—especially among young customers and foreigners who highly value sustainable, functional, and human-centric living spaces."
She added, "Green operations should be viewed as a comprehensive journey—from planning and construction to post-sale operation. Among these, the operational phase plays a crucial role in maintaining the project's 'green vitality', ensuring utility systems operate efficiently and managing energy, water, and waste smartly. This elevates the living standards for residents and the service standards of Grade A office buildings. Only when operated properly can green buildings and urban areas truly deliver differentiated experiences, rather than merely bearing a theoretical green label."
From Green Operations to Elevated Living Standards
Operating buildings and residential areas according to green and ESG standards is delivering tangible benefits to all stakeholders. Investors gain access to international capital, increase asset value, and enhance brand reputation. Operators improve management efficiency, reduce risks, and build resident trust. Residents enjoy a safe, civilized environment, with property values appreciating over time.
Currently, Vietnam has 559 certified green buildings. According to TNPM representatives, operating units play a pivotal role in maintaining and realizing green building standards after projects are completed and put into use.
As one of the pioneers in sustainable development, TNPM—a member of ROX Key—has established an internationally standardized real estate operation management system (ISO 9001:2015 & ISO 45001:2018), while also integrating smart technology solutions.
At projects such as Goldmark City and Goldseason, TNPM has implemented advanced management software like S-Plus (for handling resident feedback), FM (for infrastructure and equipment maintenance), and Car Parking (for smart parking management). These applications help optimize manpower, reduce costs, and enhance transparency and user experience—key factors in ESG criteria.
Scheduled cleaning operations at a TNPM-managed project
Beyond technology, TNPM also invests in community activities at residential areas, such as the Children's Festival, Mid-Autumn Celebration, used battery collection campaigns, tree planting, environmental cleanup, and the creation of the Green Library for Children. These initiatives promote a green and sustainable lifestyle, foster resident engagement, and elevate living standards.
Under the strategic direction of ROX Group, TNPM aims to build an international-standard, optimized, and transparent operation system, contributing to the development of a quality, smart, and sustainable living and working environment. Small details such as seamless technology experiences and personalized services reflect a high level of professionalism and care, resonating with users emotionally. This forms the foundation for TNPM to enhance asset value for investors and meet the rising expectations of customers for livable urban areas and desirable workplaces.
However, the green transformation journey is not easy. Implementing a comprehensive smart management system requires significant investment and time. TNPM also faces challenges in shifting traditional operation mindsets among residents, management boards, and partners. Furthermore, the company needs a more holistic strategy to fully integrate all three ESG elements, especially the social and governance aspects.
According to experts, ESG-integrated green operations in Vietnam's real estate sector are transitioning from a trend to an implicit standard. Despite the many challenges ahead, proactive transformation by pioneering businesses will deliver long-term competitive advantages and create positive pressure to drive the entire market forward.