How Architecture can create operational hurdles - Part 2

1. Environmental impact 

In recent years, Vietnam has focused on sustainability in its recovery strategies and socio-economic development across industries. The Government and Ministry of Finance now require businesses to include environmental, social, and governance (ESG) impact assessments in their annual reports. The Ministry of Construction has also set criteria for construction materials to promote efficient use of energy and environmental resources. As Vietnam aims for carbon neutrality (Net Zero), investing in green projects and minimising environmental impact demonstrates developers' commitment and effort to the Government and society. 

Read more: What are green building certifications? 

Environmental impact assessment involves studying technical documents to develop architectural designs, install M&E systems, and select materials that minimise the project's environmental impact while optimising long-term costs. For example, wastewater treatment systems must comply with environmental standards and minimise pollution. Air and noise levels should also be managed to ensure a healthy, productive environment for residents and tenants. 

Some solutions should be considered from the design and construction phase of the project: 

• Advanced treatment technology: Implement advanced wastewater treatment methods like biological systems, membrane treatment, or UV treatment to remove toxins and bacteria from sewage. These methods are easy to operate, energy-efficient, and allow for wastewater reuse in irrigation or cooling, reducing the demand on clean water sources and lowering operating costs. 
• Ventilation and air filtration systems: Design effective ventilation systems combined with air filters to improve air quality inside the building, reduce health risks and enhance relaxation for residents and staff. 
• Soundproofing: Use soundproofing materials to minimise noise both inside and outside the building, enhancing quietness and concentration. Modern soundproofing systems are designed to be environmentally friendly and safe for human health. This helps maintain building convenience and ensures a satisfying experience for residents and tenants. 
• Energy optimisation: Install renewable energy systems like solar power and energy-saving lighting to reduce carbon emissions and costs. According to the Vietnam Energy Efficiency Network (EEN) in 2022, applying energy-saving solutions during the design stage, such as efficient air conditioning, ventilation, and lighting, and investing in electricity and water recycling systems, can cut energy consumption by up to 50%. 

With experience in consulting and managing various property types, Savills will provide consultancy on building architectural design, aiming to help projects improve management efficiency and reduce long-term operating costs. 

Read more:

• Energy-saving solutions for buildings – Part 1
• Energy-saving solutions for buildings – Part 2

2. Equipment and finishing materials 

An often overlooked but important factor is the use of appropriate equipment and finishing materials. Using unsuitable materials can lead to environmental damage, rapid deterioration, and higher maintenance costs. For example, using rust-prone steel in contact with soil or water, substandard concrete without additives, poor weld materials, and non-energy-saving glass increases costs and reduces the project's lifespan. Therefore, focusing on quality finishing equipment and materials is essential for safe and efficient project operation. 

With Savills Consultancy and Management Services, we will review the building's architectural design, advise on each type of equipment, materials, systems... to: 

• Reduce environmental impact. 
• Build healthy living and working environments for residents and tenants. 
• Save long-term operating costs. 
• Optimise energy efficiency. 

Learn more about Savills Consultancy packages here. 

 3. Common and Private Ownership of the apartment building 

If common and private ownership are not clearly defined from the start, it can lead to future conflicts between the developer, Building Owners’ Committees, residents, tenants, and the Property Management Team. Defining these areas early on according to Vietnamese law ensures that utility services are fully provided, residents and tenants have a satisfying experience, and potential disputes are avoided. 

Some operational challenges that developers may encounter in design if common and private ownership rules are not clearly understood: 

• Project documents can not determine common ownership for each area, asset, system... 
• Developer have difficulty in calculating costs to allocate to each owner. 

To address this issue, developers should define common and private areas during the design stage and show them in technical reports. These reports should be given to Building Owners’ Committees to clearly identify these areas and prevent disputes. Additionally, developers need to work closely with relevant parties to create building rules for common areas and amenities, ensuring agreement on rights, usage, and asset protection to limit and resolve potential disputes. 

Savills is Vietnam's leading property management and consultancy agent with experienced and multi-disciplinary expert team, from engineering (M&E), accounting, training to operations, with a set of international standard operating procedures, adjusted to suit the characteristics and operating regulations/standards in Vietnam. Contact Savills Property Management Department for bespoke operational solutions. 

Read more: 

• How to divide Common and Private Areas in apartment projects 
• Potential operational challenges related to architectural design – Part 1