Green innovation drives rising demand for Vietnam’s industrial sector

Frasers Property leads with green industrial spaces.

Frasers Property Vietnam is reshaping Vietnam’s industrial landscape through sustainable development and operations, responding to the increasing demands for environmentally responsible real estate. Edwin Tan, Deputy CEO of Frasers Property Vietnam, detailed the company’s strategy for the industrial market, particularly in North and South Vietnam.

"The country, due to its strategic geography and key political policies, has become one of the key economies benefiting from China plus one trend," explained Tan. This shift is largely fueled by the relocation of high-tech manufacturing giants like Samsung, Intel, and Foxconn to Vietnam, due to geopolitical tensions and trade issues between the U.S. and China. 

Tan said that as these companies set up their operations, they bring with them a demand for sustainable infrastructure that meets high Environmental, Social, and Governance (ESG) standards.

"Our tenants and prospects these days are demanding better and greener infrastructures," Tan said, citing a survey conducted by PwC and the Vietnam Institute of Directors, which found that "80% of Vietnamese businesses have either already made ESG commitments or plan to do so in the very near future."

In response to these, Frasers Property Vietnam has embedded sustainability into its development strategy. "We firmly believe that real estate is about creating places for good," Tan stated. The company targets to achieve green certification for 100% of its properties in Vietnam. 

"Last year, we concluded a deep decarbonization roadmap that has been endorsed with Science-Based Target initiative (SBTi)," he added, marking Frasers Property as the first real estate company in Vietnam to achieve this milestone.

Beyond environmental concerns, the company also focuses on the social aspect of ESG, innovating the market with the premium industrial estate concept. "Our industrial and logistics portfolio in Vietnam comprises smart, modern, innovative, and sustainable features which focus on the social component," Tan highlighted. This approach not only enhances workplace productivity but also improves occupier health and well-being.

Additionally, the adoption of cleaner energy systems has led to significant cost savings for tenants. "One of our key tenants in Zoned Industrial Park in the South will be able to save more than 20% in terms of their electricity costs," Tan mentioned. Furthermore, Frasers Property's own premium industrial service centre within the park is net-zero, a first of its kind in Vietnam.