On January 6, Mr Ha Quang Hung, Deputy Director General of the Ministry of Construction’s Housing and Real Estate Market Management Bureau (HREM) and Mr Kia Fariborz, Chief Technical Advisor of the “Support Program for the Implementation of the Paris Agreement (SIPA)”, GIZ Viet Nam, signed a Memorandum of Understanding (MoU) for cooperation on the joint development of the Vietnam Green Housing Program (VGHP) under the implementation of the Programme for Energy Efficiency in Buildings (PEEB) in Viet Nam.
The VGHP, implemented supported through under the GIZ Programme for Energy Efficiency in Buildings (PEEB) in Viet Nam, aims to target the low-cost commercial housing segment. The MoU focuses on enabling greenhouse gas (GHG) emissions mitigation in the residential building sector.
Under the partnership, GIZ and HREM will cooperate to develop and implement the Vietnam Green Housing Program. A particular focus of the program is on improving energy efficiency and reducing GHG emissions in the affordable housing segment as per Vietnam’s commitment in its Nationally Determined Contribution to the Paris Agreement on Climate Change.
In Vietnam, the total production value of the construction sector reached VND 358.684 billion, contributing 5.94% of the national GDP in 2019. As an emerging economy, Viet Nam is expected to see a dramatic increase in demand for spacious and comfortable residential property due to the rapid growth of the middle class with approximately 50 million square meters of housing added in 2019. “As the potential for GHG emissions reduction through energy efficiency in the construction sector is enormous, this cooperative endeavour will contribute to Vietnam’s aim of reducing GHG emissions”, said Kia Fariborz.
Regarding this issue, Mr. Ha Quang Hung – Deputy Director General of the Housing and Real Estate Market Management Bureau highly appreciated the initiative for integrating the PEEB’s goal of energy efficiency and low emissions with the Government’s goal of low-cost commercial housing development. According to calculations, within 10 years after reaching the target of the Green Housing Program, the apartment buildings will save about 6.3 billion kWh of electricity, equivalent to VND 15.8 trillion. This is a significant cost saving that will benefit the homebuyers if they use energy efficiently in the apartment. In addition, in the short term, the Program will create a plentiful supply of low-cost commercial housing, thereby facilitating the people’s access to affordable housing.