Ho Chi Minh City, Vietnam, June
4, 2015—IFC, a member of the World Bank Group, is launching its green-building
certification program in Vietnam to encourage the construction of more
resource-efficient buildings. Vietnam is the first market in East Asia
to introduce EDGE (Excellence in Design for Greater Efficiencies), which
empowers developers to reduce their buildings’ energy and water consumption
by 20 percent while lowering greenhouse-gas emissions.
IFC is partnering with SGS Vietnam Ltd.
to offer EDGE, a program that proves the business case for building green
in emerging markets. EDGE offers a free software that allows designers
to choose technical solutions while showing the extra costs to build green
and the payback period. Better design reduces energy and water use, which
in turn lowers the monthly utility bills for owners and tenants.
“We encourage investors, developers,
and practitioners to construct more environmentally friendly buildings
that reduce energy consumption and mitigate climate change,” said Le Hoa
Binh, Deputy Director of the Ho Chi Minh City Construction Authority. “EDGE
is an innovative, voluntary building-certification system that will help
us improve the environment for our people.”
Buildings account for more than 30 percent
of the total energy use in fast-growing economies like Vietnam, hence improving
energy efficiency in new buildings is critical.
“Precise and strategic changes can
make a big difference in improving the efficiency of buildings, which make
up about a third of Vietnam’s total energy consumption,” said Vivek Pathak,
IFC Regional Director for East Asia and the Pacific. “Resource efficiency
will significantly reduce the operating costs of buildings and put Vietnam
on a low-carbon economic growth path.”
SGS Vietnam, a subsidiary of SGS S.A.,
a leading inspection, testing, and certification company headquartered
in Switzerland, will serve as a third-party certifier of EDGE in Vietnam.
Over the next six years, SGS Vietnam expects to award EDGE certifications
to 20 percent of new construction projects in the country, equivalent to
about 70,000 housing units. This level of penetration will help cut 19,000
metric tons of greenhouse-gas emissions per year, avoid 43,500 megawatt-hours
of energy use, and save $8 million per year by 2021.
“We are seeing strong interest from
investors and developers in fulfilling the increasing demand for eco-friendly
and resource-efficient buildings in Vietnam,” said Steven Du, Managing
Director at SGS Vietnam. “As EDGE offers the most cost-efficient ways
of bringing green features into building design, we believe it will be
effective for a wide range of properties, including office, residential,
and commercial buildings in Vietnam.”
Developer Nam Long Investment Corp.
is among the first to receive an EDGE certification in Vietnam for its
Bridge View Apartments. The design will cut energy use by 20 percent, water
use by 22 percent, and construction materials by 27 percent, but adds only
2 percent to the construction costs.
Vietnam is a focus of IFC’s EDGE program
along with a few other priority countries, which include Costa Rica, India,
Indonesia, and South Africa. “By introducing EDGE, IFC brings to the market
a solution that spells out the cost advantages of building green,” said
Julia Brickell, IFC Climate Business Anchor for East Asia and the Pacific.
“We want to help support Vietnam’s sustainable growth by making large-scale
adoption of green buildings easy and affordable.”
The EDGE software can be accessed at
IFC’s work to promote green buildings in Vietnam is delivered in partnership
with the Switzerland’s State Secretariat for Economic Affairs (SECO).
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle
the most urgent challenges of development. For more information, visit