Developers should implement energy-efficient solutions to optimise operational budgets, meet sustainability targets, create green developments, and support occupier demands for eco-friendly properties and operations. To support developers and align with Savills global sustainable development strategy, Savills Viet Nam developers solutions to enhance energy efficiency in real estate.
Energy savings have become an essential part of the future development
At the Climate Summit held as part of the 26th United Nations Climate Change Conference of the Parties (COP26) in Scotland, Prime Minister Pham Minh Chinh stated that Viet Nam will achieve its net-zero carbon emission target by 2050. The Government has issued various strategies, and action plans, such as Directive No. 20/CT-TTg to fulfil this commitment. This directive mandates that every year between 2020 and 2025, Viet Nam must save at least 2% of energy use per produced product annually while reducing electrical losses across the entire power system to less than 6% by 2025. Using energy efficiently and saving energy is considered a crucial pillar implemented by the Ministry of Industry and Trade to contribute Net Zero target as pledged by the Government at COP26.
The world is facing a global energy crisis. According to the Federal Reserve Economic Data (FRED) report, in 2022, the price of crude oil consistently exceeded US$100 per barrel. On the TTF exchange, natural gas prices in Europe reached their highest level at 340 euros per megawatt-hour at the end of August 2022. As a net energy importer, with significant imports of coal, oil, and soon, liquefied natural gas (LNG), Viet Nam is confronted with the pressing need for energy efficiency and conservation to mitigate the impacts of the energy crisis on its economy.
According to the Ministry of Construction, approximately 40% of total energy consumption in an urban area is allocated to buildings, with high-rise buildings having the highest energy consumption. Developers should focus energy conservation efforts to share the burden on energy resources and optimise building operational costs.
Following our previous publication on energy savings in buildings, Savills experts will provide additional recommendations to assist developers in planning energy efficiency.
Energy-saving solutions in building operations
1. Use energy-efficient equipment and sensors in common areas
According to a 2022 study by Vietnam Energy Efficiency Network (EEN), proactively implementing energy-saving solutions during the design phase, including installing efficient lighting, cooling and HVAC systems can reduce energy consumption by up to 50%.
While architectural and construction firms are aware of some fundamental principles related to energy efficiency, management consulting firms help developers to optimise costs and ensure the project's energy-efficient and sustainable use. Learn more about Savills technical system assessment and solutions consultancy package.
Choosing energy-labelled equipment and devices: According to Article 15 of Decree 21/2011/NĐ-CP, which provides detailed regulations for the implementation of the Law on Efficient and Sustainable Energy Use, there are two types of energy labels, including the Energy Label (Energy Star Label) and the Comparison Label achieving a 5-star energy performance rating according to the State's regulations. To get an energy label, manufacturers must submit registration documents to the Ministry of Industry and Trade. Therefore, these labels can be used as a basis for developers to select suitable equipment and ensure control over energy consumption.
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Two types of energy labels Source: National Energy Efficiency Programme (VNEEP)
Switching to energy-efficient lighting: According to a report from the US Environmental Protection Agency, using lighting devices such as compact fluorescent lamps (CFLs), fluorescent tubes, or light-emitting diodes (LEDs) can reduce energy consumption by up to 70%. In addition to consuming less energy, these devices also produce less heat, reducing the need for air conditioning. LED lights also have a lifespan of three times longer than fluorescent lamps and are easy to recycle, making them environmentally friendly.
Using motion sensor devices: Motion sensor devices save lighting energy by turning off or dimming the lights when a space is unoccupied. In Viet Nam, this solution can cut energy use in specific areas by as much as 50%.
Applying a smart temperature management system: Adjusting the settings of a thermostat within a range of a few degrees can help reduce energy consumption. According to data released by the European Commission in 2022, adjusting the temperature up or down by 1°C on a thermostat can cut energy consumption for heating/cooling a building by 10%.
The selection and installation of technical systems from the construction phase will help developers optimise energy usage. Once the technical systems have been finished and handed over, modifications or improvements to enhance operational efficiency can be expensive and time-consuming. With a wealth of experience in consulting and operating various types of real estate projects, Savills experts can assist developers in finding long-term energy and cost optimisation solutions.
2. Enhance insulation and soundproofing
Insulation and soundproofing layers installed on the roof, ceiling, walls, and floor act as thermal and acoustic barriers. According to a study by KISR, heating and cooling systems account for 65% of total energy consumption in buildings without insulation, compared to 35% in buildings with insulation. Additionally, many insulation and soundproofing materials available today are environmentally friendly and designed to ensure human health. These layers also play a crucial role in maintaining the comfort of the building and ensuring a satisfying experience for residents and tenants.
To improve insulation and soundproofing in a building, developers can consider the following solutions:
Using thermal and acoustic insulation materials for ceilings, walls, and floors
- Organic thermal and acoustic insulation materials: These are industrially manufactured materials such as glass wool and mineral wool. They have good sound-absorbing and heat-absorbing properties, often used in building facades, curtain wall systems, hollow core concrete walls, or interior partitions within the building.
- Artificial thermal and acoustic insulation materials: This category includes foam plastic, plywood, and various composite materials. These materials are known for their professional thermal and acoustic insulation capabilities. They are commonly used in constructing large spaces like theatres, conference rooms, and more.
- Soundproof and thermal insulated glass units: These are specialised glasses with two or more layers that provide both aesthetic appeal and good soundproofing and thermal insulation properties. They are particularly useful in office buildings as they allow natural light to come in while protecting against UV rays and supporting thermal and acoustic insulation for occupants.
Designing insulated and soundproofed ceilings
Buildings are typically designed with a continuous or interconnected framework, which means heat and sound propagate through the structure. One of the popular methods is using suspended ceilings. During construction, developers should leave an air gap between the original ceiling and the suspended ceiling to reduce the transfer of heat and sound through the structure. Additionally, developers can design suspended ceilings to combine aesthetic appeal with soundproofing and thermal insulation.
Implementing thermal and acoustic insulation solutions during the construction phase can help developers optimise costs and save time. Savills provides consulting services to assist developers in addressing any challenges related to the design and installation of technical systems with our design and technical systems consultancy.
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3. Integrate energy management systems (EMS)
An Energy Management System (EMS) is a set of computer-based tools that help monitor, control, and optimise the performance of devices or a transmission system. The goal of EMS is to optimise energy consumption at the lowest possible cost.
What are the benefits of EMS?
- Energy data collection and usage monitoring: The EMS collects energy data from energy meters and monitoring devices installed in the project. This data is transmitted to a central server via various communication protocols like RS-232, RS-485, or Profibus, allowing technicians to monitor real-time information about energy usage.
- Quick, accurate, and reliable reports: The system allows technicians to automatically update and access real-time data and generate reports rapidly. It helps in detailed energy consumption data collection, pinpointing periods of energy waste and optimising energy use in the building.
- Improving equipment longevity through enhanced energy quality: The quality of energy supplied to equipment significantly impacts their lifespan. With energy data, technicians can adjust energy parameters to ensure they fall within permissible error margins, creating optimal conditions for equipment operation.
ISO 50001 standard on energy management system in Viet Nam
The ISO 50001 standard is an international standard for Energy Management Systems developed and published by the International Organisation for Standardisation (ISO). By specifying requirements for an Energy Management System, ISO 50001 is a powerful tool for establishing, implementing, and maintaining energy management systems to enhance energy performance. It provides the foundation for self-assessment or assessment and certification against energy management standards.
CONCLUSION
Energy-efficient operations optimise costs, uphold development and service quality, and facilitate sustainable development. Savills helps developers implement energy-efficient operations with comprehensive consultancy packages:
Design and technical systems consultancy (for pre-operational projects): Savills will provide design solutions, equipment selection, and technical system installation to help developers optimise energy costs during operation.
Technical system assessment and solutions (for operational projects): By evaluating physical infrastructure, electrical systems, operation, and maintenance of technical systems compared to standards, Savills provides independent assessments and recommendations.
Contact Savills Property Management for advice.

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