Memorandum of Understanding on the implementation of the Energy Efficiency Program in Buildings in Vietnam was signed between the Housing and Real Estate Market Management Agency (the Ministry of Construction) and the German Development Cooperation (GIZ).
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Deputy Director of Ha Quang Hưng and Chief Advisor GIZ Kia Fariborz signed a Memorandum of Understanding between the two sides
The Housing and Real Estate Market Management Agency and GIZ will coordinate to build and implement the Vietnam Green Housing program, aiming to improve energy efficiency and reduce GHGs emission in the low-cost commercial housing segment.
Through the program, the two sides will support private investors to participate in the green building market and energy efficiency; encourage domestic commercial banks to develop green credit products for both homeowners and home buyers, as well as green equipment and material suppliers involved in the low-cost commercial housing segment.
In Vietnam, the total production value of the whole Construction industry in 2019 reached 358,684 billion VND; contributing 5.94% of the GDP of the country. Vietnam is considered as an emerging economy, with a strong increase in the need of housing space and amenities, with about 50 million square meters of housing space in 2019.
Mr. Kia Fariborz - GIZ Chief Advisor said: “The potential to reduce greenhouse gas emissions through energy efficiency in the construction sector is huge, so this MOU will contribute to the implementation of the goal of reducing greenhouse gas emissions in Vietnam”.
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The whole signing ceremony
Mr. Ha Quang Hung - Deputy Director of Housing and Real Estate Market Management Agency said: “It is estimated that within 10 years after completing the target of the Vietnam Green Housing program, condominiums will save about 6.3 billion kWh of electricity, equivalent to 15.8 trillion dong. This is a significant cost savings that homebuyers will enjoy if they use energy efficiently in the apartment”.
In addition, in the short term, the program also creates a plentiful supply of low-cost commercial housing, helping people to access affordable housing.
The Vietnam Green Housing Program was developed as part of the Energy Efficiency in Buildings Program to benefit the middle-income housing market. The PEEB is a joint initiative of the two German-French Governments, combining consulting, providing financial and technical expertise from GIZ, French Development Agency and Energy and Environment Management Agency, to support partner countries improve energy efficiency in buildings.
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Deputy Director Ha Quang Hung and Chief Advisor GIZ Kia Fariborz took a photo with the delegates
PEEB aims to minimize energy demand in buildings at reasonable added costs, promote green investment in energy efficient buildings, as well as support access to green finance from international and domestic finance institutions. In Vietnam, PEEB focuses on green housing and large-scale commercial buildings programs.