Supply Chain Emission Reduction – The New Standard for Green Industrial Real Estate in Vietnam

As global economies accelerate their commitment to achieving net-zero emissions, reducing emissions across the supply chain has become a top priority for businesses worldwide.

According to the Net Zero Challenge: The Supply Chain Opportunity report by the World Economic Forum (WEF), more than 90% of total emissions in certain industries originate from their supply chains, not just from direct corporate operations. This means that to achieve “Net Zero,” companies must extend their actions across the entire production ecosystem – from raw materials and factory operations to logistics infrastructure.

In Vietnam, this trend is significantly reshaping the industrial real estate sector, where industrial parks and factories play a central role in regional supply chains. As global corporations increasingly tighten ESG and carbon emission standards, infrastructure developers must also transition quickly – from an “expansion-based” model to a “sustainability-driven” model.

From Green Industrial Parks to Low-Carbon Supply Chains

The WEF report highlights that reducing supply chain emissions not only helps businesses mitigate climate risks but also provides sustainable competitive advantages – through access to green finance, long-term contracts, and global partnerships.

Among the most effective and practical solutions to achieve this goal are internationally certified green buildings such as LEED and EDGE.

These standards not only assess energy efficiency or the use of eco-friendly materials but also comprehensively measure factors such as operational performance, water management, indoor environmental quality, climate adaptability, and carbon reduction potential throughout a building’s life cycle. In other words, green buildings serve as the physical foundation of a low-carbon supply chain.

The coming years will witness a convergence of international green building certifications, real-time ESG monitoring technologies, and green financial mechanisms.

Enterprises will not only meet green design standards but will also be able to measure, report, and verify emission reduction performance through quantitative data – helping them meet global partners’ growing demands for climate transparency.

This convergence paves the way for a new model in Vietnam’s industrial real estate sector: the “Green & Smart Industrial Ecosystem” – where operational performance, energy management, and carbon emissions are optimized through data and technology.

LŌ-GOI Hung Yen Project – A Testament to the Global Trend

A prime example of this transformation is the LŌ-GOI Hung Yen project, which has recently achieved LEED Gold Certification under the Building Design and Construction: Core and Shell Development (LEED v4) category. In this project, ISD Engineering – Vietnam’s leading green building consultancy – served as the LEED certification advisor.

This milestone reflects LŌ-GOI Group’s unwavering commitment to integrating ESG principles and international green standards across every phase of the project – from low-carbon design and construction to long-term operations.

LŌ-GOI aims to pioneer a new generation of industrial parks where quality, efficiency, and environmental responsibility go hand in hand. By optimizing energy performance, minimizing emissions, and using eco-friendly materials, the project not only delivers economic value to investors and tenants but also contributes positively to the sustainable development of the local community.

As one of Vietnam’s emerging industrial and logistics developers, this certification marks an important step in building a low-carbon, resilient, energy-efficient, and future-ready industrial ecosystem.

The next milestone for this estate is to achieve carbon neutrality, through nature-based carbon offset solutions developed in-house by its Renewable Infrastructure division.

Learn more about the LŌ-GOI Hung Yen project: Link

ISD Engineering – Bridging International Standards and Vietnamese Practice

With over 100 green building projects nationwide, ISD Engineering is currently the first green building consultancy in Vietnam to be recognized as a LEED Proven Provider by USGBC/GBCI – acknowledging its outstanding and consistent performance in delivering LEED-certified projects – and as an EDGE Premier Service Provider by IFC/World Bank Group, a prestigious title reserved for organizations demonstrating exceptional expertise and results in EDGE certification.

Notably, the Founder of ISD Engineering is a USGBC Faculty (recognized instructor by the U.S. Green Building Council) and an EDGE Global Master Trainer under the IFC, affirming the firm’s professional competence and international credibility.

By connecting enterprises with global standards, ISD Engineering helps Vietnamese developers realize their sustainability goals while meeting the emission reduction requirements of FDI partners – a factor that is increasingly becoming a prerequisite in global manufacturing collaboration.

Contact ISD Engineering today for green certification consultation.