Green Building Industry: Its future in Asian countries? Choose one country and focs on it. Essay Example
5GREEN BUILDING INDUSTRY IN ASIA –VIETNAM
Green Building Industry in Asia –Vietnam
Green Building Industry in Asia –Vietnam
In the past few decades, green building has attracted a lot of attention in which case its proponents have been convincing developers and clients that green is the start of the art. This is based on the precepts that by building green, people living within the buildings are healthier, productive and happier. In addition, the use of economic resources is significantly enhanced in which case less energy and water consumed thereby promoting conservation of local environment and global environmental responsibility. In that case, green building comes along way at savings costs as compared to the traditional forms of building. This research essay takes a closer look at the current status and future of green building in Asia with specific focus on Vietnam (Seem, 2009).
In an August 2013 white paper by Solidiance in collaboration with Vietnam Green Building Council, green building in Vietnam is still in development stages. This is argued to be because of low prices of electricity, cost sensitivities, misaligned incentives and short-term thinking between users and developers. In addition, there is limited supply of skilled labor force coupled with immature regulatory market. Nevertheless, situation is changing with the introduction of locally-customized green building standards referred to as LOTUS. This is reinforced with a paradigm shift towards a market-based electricity pricing and worldwide corporate guidelines that requires green practices. As such, the market for green building is attracting a lot of revival (Solidiance, 2013).
As earlier mentioned, global corporate guidelines are attracting multinational organizations towards going green as is the case with Big C’s Green Square located in Southern Binh Duong province as well as in most industrial installations. Secondly, the sales and marketing strategies being adopted by companies in regard to residential and office buildings with the aim of improving their brand value and occupancy rates is also a key factor. For instance, in 2012, the first Leed office building was opened in Vietnam with the aim of capitalizing on pioneer entry into the market. Third is cost savings in which case, green builders target at minimizing operating expenses of the users in regard to energy costs. It is the aim of Vietnam’s government to continuously shift towards market-based power pricing so as to reduce energy costs. Fourth is that there is reduced number of high-grade buildings in Vietnam and thus green buildings have a chance to cut out a market niche thereby attracting multinationals that are focusing at superior office spaces as compared to what is currently in the market (Solidiance, 2013).
In order to standardize green building in Vietnam, there are two certifications; LEED and LOTUS. LEED is an internationally recognized standard and mainly involves multinationals that are currently building green buildings across the world. They are for instance Pepsi, Nokia and Coca-Cola. However, its weaknesses include under development in the context of Vietnam market and it is relatively more expensive to adopt and implement. On the other hand, Lotus is a locally developed standard for the Vietnam market and it receives country-wide support. That is the advantage as compared to LEED. However, its weaknesses is that it is not widely known outside Vietnam and it is not adopted by majority of multinational organizations that aim at establishing green buildings across the globe. According to survey, LEED is more user-friendly as compared to LOTUS because the former promotes more sustainable practices. This is in terms of ease of obtaining, training, implementation costs and recognition (Solidiance, 2013).
Going green in Vietnam has characteristic benefits and costs in both short term and long term cases. In regard to short-term costs is in the case where it is perceived more expensive. Though implementation costs in Vietnam cannot be ascertained adequately, based on LOTUS certification, in other Asian countries, if ranges from between 1-10% compared to that of an ordinary building. With increased demand for green building products in the short terms, supply will considerably rise and subsequently lead to increased drop in prices. In another aspect, long terms gains will be realized considerably. As such, returns on investment will occur with reduced operating costs coupled with heightened rental income and theoretically higher rates of occupancy for green hotels and office buildings. Lower costs of operation will be realized in terms of having efficient air-conditioners, low electricity bills, energy-efficient glass and low-energy lights. This will eventually result in savings of hard monitories. In conclusion, therefore, green building in Vietnam can be promoted by government in collaboration with other stakeholders thereby encouraging cooperation and establishing support. Besides, by liaising with training institutions in Vietnam, there will be skilled labor force that wills fill-in the gap within the market (Solidiance, 2013).
Seem, A. K. (2009). The Future of Green Building. Retrieved from http://www.businessweek.com/innovate/content/mar2009/id20090316_423523.htm
Solidiance. (2013). Is There a Future for Green Buildings in Vietnam? Retrieved from http://www.solidiance.com/whitepaper/is-there-a-future-for-green-buildings-in-vietnam.pdf
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