Volume 13, Issue 8 (August 2026), Pages: 201-212

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 Original Research Paper

Institutional and financial determinants of sustainable real estate development: Evidence from Vietnam

 Author(s): 

Thi Hien Dam ^1, *, Thi Minh Phuong Le ²

 Affiliation(s):

¹Faculty of Business Administration, Academy of Policy and Development, Hanoi, Vietnam
²Faculty of Accounting and Business, ThuyLoi University, Hanoi, Vietnam

 Full text

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 * Corresponding Author. 

   Corresponding author's ORCID profile:  https://orcid.org/0009-0004-4489-5042

 Digital Object Identifier (DOI)

 
https://doi.org/10.21833/ijaas.2026.08.020

 Abstract

Sustainable real estate development is a cornerstone of green growth strategies in emerging economies. However, empirical evidence on the relationship between market dynamics and sustainability outcomes remains fragmented. This study examines Vietnam over the period 2010–2024 by developing a transparent composite Sustainable Development Index (SDI) that integrates economic, social, and environmental dimensions. To ensure econometric validity and reduce mechanical endogeneity, the SDI is constructed independently of the explanatory variables. Using an Ordinary Least Squares (OLS) framework with Newey–West standard errors to account for small-sample properties, the study examines the effects of real estate market value (REVAL), housing quality (HOUS), green building adoption (GRENB), and institutional quality (INST). The findings indicate that market expansion, housing improvements, and environmental innovations contribute positively to sustainability, whereas institutional quality has a significant negative contemporaneous association. This unexpected relationship may reflect transitional challenges, as stricter regulations and tighter land governance temporarily slow market activity and increase compliance time. Broader environmental pressures appear to affect sustainability through delayed or indirect channels. This study provides a replicable evaluation framework for data-constrained transitional economies. The findings highlight the importance of coordinated regulatory implementation, effective green building incentives, and institutional predictability in balancing real estate growth with urban sustainability.

 © 2026 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

Sustainable development, Real estate dynamics, Institutional quality, Composite index, Green buildings

 Article history

Received 24 April 2026, Received in revised form 11 July 2026, Accepted 24 August 2026

 Acknowledgment

No Acknowledgment. 

 Compliance with ethical standards

 Citation:

Dam TH and Le TMP (2026). Institutional and financial determinants of sustainable real estate development: Evidence from Vietnam. International Journal of Advanced and Applied Sciences, 13(8): 201-212

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