More and more facilities are attempting to meet high energy efficiency and environmental goals, Photo: CMES

According to Truong Khac Nguyen Minh, deputy general director of industrial property developer Prodezi Long An, as the world grapples with geopolitical uncertainties, trade protectionism, and supply chain restructuring, global enterprises are shifting investment strategies towards open, stable economies with a proactive green transition agenda.

“Most investors we meet remain cautiously optimistic, but they also expect Vietnam to take decisive steps in shaping next-generation foreign investment policies,” Minh said. “New-generation investors, particularly those operating within global supply chains, require a comprehensive ecosystem of technology partners, suppliers, and agile operations.”

With this in mind, Prodezi Long An has pursued a clear, long-term vision focused on sustainable development and added value creation.

The company is developing an eco-centric industrial park model that integrates environmental, social, and governance (ESG) standards and circular economy principles, aiming to create energy-efficient, environmentally friendly, and cost-effective production spaces.

“I believe that if Vietnam take decisive action now to build a deep investment ecosystem, the next foreign investment growth cycle will be not only broader but also more sustainable, effective, and impactful for the national economy,” Minh added.

Similarly, Frasers Property Vietnam is on a journey towards sustainability and green real estate leadership.

According to Edwin Tan, deputy CEO and managing director for industrial and logistics for Southeast Asia, the group’s industrial and logistics footprint in Vietnam has grown to more than 300,000sq.m across four provinces, and is on track to reach nearly one million sq.m by 2028.

“As the real estate sector accounts for nearly 40 per cent of global carbon emissions and more than 70 per cent of urban emissions, sustainability has been a key focus for us since 2006,” Tan said.

Tan added that the group was advancing its ESG agenda through innovation, green building certifications, and climate resilience initiatives. “We were the first Singapore Exchange-listed company to commit to net-zero carbon emissions across scopes 1-3 by 2050,” he said.

In Vietnam, Frasers Property is the first real estate company with science-based targets officially approved. Its roadmap includes installing 215MW of renewable energy capacity by 2030, including 15MW in Vietnam, and 46MW has already been deployed globally.

By 2030, it aims to have all new development projects and 85 per cent of owned or managed properties either green-certified or pursuing certification and also plans to engage 75 per cent of suppliers under its responsible sourcing policy.

To drive Vietnam’s net-zero ambitions, it is introducing industrial service centres, which aim to enrich the industrial ecosystem with amenities and sustainability features such as solar rooftops, electric vehicle charging stations, and smart energy management systems powered by AI.

Pham Thuy Duong, deputy director of Research and Analysis at Dragon Capital, noted that Vietnam has evolved from being a hub for labour-intensive industries like textiles and footwear to attracting major tech giants such as Samsung and Apple, a testament to the country’s rising position in the global supply chain.

“In today’s competitive landscape, tariff barriers and regional rivalry are no longer just about low costs, but about value creation and sustainable commitments. ESG standards have become global investment norms. Even financially strong businesses can be excluded from investment portfolios if they violate such principles,” Duong aid.

Meanwhile, Savills Vietnam highly values the role of AI in ensuring the operational efficiency of industrial real estate.

“AI enhances sustainability while maintaining operational efficiency. In the industrial property sector, AI is used in heating, ventilation, air conditioning, lighting automation, energy management, building security, and resource optimisation,” said Thomas Rooney, associate director of Industrial Property at Savills Hanoi.

“Algorithms can monitor and enhance operations in real-time adjusting lighting, temperature, humidity, and air quality. AI also supports predictive maintenance, minimising waste and reducing costs. Generative design and AI simulation further help developers create energy-efficient, eco-friendly buildings,” added Rooney.

For projects aiming to achieve international green certifications, the compliance process can be complex However, AI can simplify this by continuously monitoring and ensuring adherence to sustainability standards from design through construction and operations, Rooney explained.

As more businesses prioritise sustainability and seek green-certified properties, AI-powered industrial real estate can command higher rents and occupancy rates, while investment in AI-integrated green technology boosts energy efficiency and increases tenant satisfaction.

“In the near future, regulators may mandate the use of AI in building management to meet energy efficiency and sustainability goals.

AI-driven building management may shift from optional to mandatory. Industrial property developers must proactively embrace this trend,” Rooney said.