Green Warehouses – A New Wave in Logistics Transition and Modern Real Estate Models

News

As global enterprises accelerate their green transition, the logistics industry – long regarded as the “lifeblood” of supply chains – is undergoing a major transformation. Within this shift, green warehouses are emerging as an inevitable trend and a new benchmark for modern industrial real estate.

Entering the Carbon-Neutral Era of Logistics

According to estimates by the International Energy Agency (IEA), the logistics and transportation sector accounts for over 11% of total global CO₂ emissions. Pressure from national Net Zero policies and increasing supply chain transparency requirements from multinational corporations are compelling Vietnamese enterprises to restructure their entire operations—from production to storage and transportation.

In this context, a green warehouse is no longer a symbolic choice but a prerequisite for participating in sustainable global supply chains. Traditional warehouse models—energy-intensive, high-emission, and inflexible—are gradually being replaced by logistics centers integrated with advanced technologies and international green standards.

What Is a Green Warehouse – and Why It’s Defining a New Standard

A green warehouse refers to a storage and distribution facility designed and operated according to green building standards such as LEED, EDGE, aiming to minimize environmental impact, reduce energy consumption, and optimize operational costs.

The key distinction of a green warehouse lies in the integration of sustainable technologies and architectural solutions, including:

  • Optimized natural lighting and ventilation to reduce electricity demand.
  • Use of renewable energy such as rooftop solar power.
  • Smart Building Management Systems (BMS) that monitor temperature, humidity, and real-time energy use.
  • Environmentally friendly materials with verified origins and recyclability.
  • Infrastructure for electric vehicles and green logistics (electric trucks, autonomous robots).

Together, these features form a high-performance, low-emission logistics model that aligns with ESG (Environmental, Social, and Governance) goals—now a key evaluation criterion for investors and global partners.

The Rising Wave in Vietnam

In Vietnam, the wave of investment in green warehouses and sustainable logistics is accelerating, driven by e-commerce growth, export manufacturing, and new-generation FDI attraction policies.
Major developers such as BW Industrial, Frasers Property, Mapletree, and LOGOS have already begun integrating green building standards into their warehouse and factory systems.

Beyond environmental compliance, this model delivers tangible financial benefits:

  • 20–30% reduction in energy costs through efficient design.
  • Higher rental value and occupancy rates, as FDI tenants increasingly prioritize certified green facilities.
  • Alignment with Vietnam’s Net Zero 2050 commitment, enabling access to international green financing.

According to experts, green warehouses are fast becoming a strategic competitive advantage—much like how “green factories” reshaped the manufacturing industry a decade ago.

A Pioneering Milestone: Frasers Property Vietnam and the First LEED-Certified Warehouse

One of the most pioneering projects in Vietnam today is the Eco Logistics Center by Frasers Property Vietnam, recently certified LEED v4, becoming the first ready-built warehouse in Vietnam to achieve this standard.

The design and construction phases of the Eco Logistics Center were carried out in accordance with the LEED evaluation system. This included implementing measurable, practical strategies across the industrial park, such as optimizing energy performance (with projected energy savings of up to 25% compared to similar warehouses), installing energy- and water-saving equipment, adopting advanced operational practices, selecting sustainable materials, and ensuring high indoor environmental quality.

Situated on more than 7.5 hectares, the Eco Logistics Center provides warehouse spaces for tenants who value sustainability. In addition to its environmental focus, technology and design elements were integrated to enhance productivity, health, and user well-being.

Mr. Edwin Tan, Deputy General Director of Frasers Property Vietnam, shared:

“Achieving Vietnam’s first LEED certification not only reinforces our real estate strategy but also contributes to the nation’s progress in sustainable development. We are committed to integrating sustainability throughout the real estate lifecycle—from obtaining green building certifications to upgrading existing properties to higher standards. These are key aspects of creating value for our partners, tenants, and customers.”

The LEED certification of the Eco Logistics Center marks Frasers Property Vietnam’s first step toward progressively certifying all its owned and managed industrial facilities nationwide. The company aims to achieve LEED certification for over one million square meters of internationally standard industrial facilities across more than 180 hectares in both northern and southern Vietnam. These commitments reinforce Vietnam’s growing reputation as an emerging industrial powerhouse and attractive destination for foreign investment.

Behind this success stands ISD Engineering—a leading green building consultancy in Vietnam and the LEED advisor for the project. ISD’s involvement ensured compliance with the USGBC’s (U.S. Green Building Council) rigorous criteria while demonstrating the capability of Vietnamese professionals to meet the world’s most demanding green standards.

Learn more from the Frasers Property Vietnam article: [Link]

Green Warehouses – The Foundation of Vietnam’s Logistics Future

In the near future, green warehouses will no longer be a competitive advantage but a mandatory standard for developers and logistics operators seeking to integrate deeply into global supply chains.

As a pioneering green consultancy, ISD Engineering continues to accompany investors in creating world-class green buildings, contributing to a modern, intelligent, and sustainable logistics ecosystem in Vietnam.

ISD Engineering is Vietnam’s leading green building consultancy, pioneering the integration of international sustainability standards into practice. Notably, ISD Engineering is the first company in Vietnam to be simultaneously recognized as a LEED Proven Provider by USGBC/GBCI—affirming its outstanding capability, credibility, and consistent excellence in delivering LEED-certified projects—and an EDGE Premier Service Provider by IFC/World Bank Group, a prestigious designation awarded to organizations demonstrating exceptional expertise and performance in EDGE certification.

Connect with ISD Engineering today to receive the latest expert insights and consultation on green building development.

Posted on
November 9, 2025