Should Small and Medium Enterprises (SMEs) Invest in Green Building Certifications?

In the context of sustainable development and the global Net Zero 2050 trend, many small and medium enterprises (SMEs) in Vietnam are asking: Should we invest in green building certifications such as LEED, EDGE?

Clear Benefits for SMEs

– Reduced operating costs: Green buildings significantly lower expenses for electricity, water, and maintenance in the long run. With the EDGE certification system by IFC, SMEs can achieve these savings without a prohibitively high upfront investment.

– Enhanced brand reputation: Owning a green-certified building makes it easier for businesses to impress customers, partners, and investors with their commitment to sustainability.

– Access to green finance: Many banks and international funds currently offer preferential loan packages for green projects, enabling SMEs to expand their operations.

– Meeting global standards: Green certifications help companies better prepare for ESG, CBAM, and integration into global supply chains.

Challenges to Consider

– Initial investment costs: Although EDGE is more cost-effective, SMEs still need to allocate a significant budget for consulting, design, and construction in line with certification requirements.

– Limited management resources: Maintaining certification requires a dedicated team to monitor and report regularly—something not all SMEs are equipped with.

So, Should SMEs Invest in green building certifications?

– Currently, about 60% of LEED-certified projects are in the industrial sector, showing that this type of development particularly prioritizes LEED—especially for manufacturing companies targeting exports to European and U.S. markets. For businesses in export-oriented manufacturing, real estate, or those aiming to build a sustainable brand, investing in green building certification is a strategy worth considering.

– Meanwhile, EDGE is considered a more affordable solution, suitable for housing, hotels, and the Vietnamese market in general, thanks to its accessibility and focus on optimizing resource efficiency.

– For companies that primarily serve the domestic market and are not yet under ESG pressure, it may be advisable to start with internal green initiatives (such as energy savings and eco-friendly materials) and then upgrade to certification once sufficient resources are available.

Conclusion

Green building certifications are not just “certificates” but a long-term investment strategy, helping SMEs save costs, strengthen their reputation, and be ready for international integration.

Green Building Consulting Services at ISD Engineering

We are proud to be the first and only green building consulting firm in Vietnam recognized as both:

– LEED Proven Provider by USGBC/GBCI — acknowledging our consistent excellence in delivering LEED projects.

– EDGE Premier Service Provider by IFC/World Bank Group — an honor granted only to firms demonstrating outstanding expertise and performance in EDGE certification.

Our comprehensive solutions include:

• Strategic consulting for achieving certification across different building types.
  
• Assessing current conditions & developing detailed, cost-optimized roadmaps.
  
• Supporting documentation, certification procedures, and accompanying clients throughout implementation.

Contact Us

👉 Get in touch today to receive expert consulting and become one of the pioneering enterprises to achieve green certification in Vietnam.

🔗 Learn more about our expertise in green building certifications at ISD Engineering.