IFC Helps Build More Homes for Mid-Income Earners in Vietnam

IFC, a member of the World Bank Group, is financing Nam Long Investment Corp to build 8,000 apartments for mid-income homebuyers in Ho Chi Minh City by 2017 to alleviate an acute shortage of affordable housing in the country’s biggest city.

 

IFC’s US$7.5 million equity investment will support Nam Long’s plan to build more housing units under its EHome brand, which was launched 10 years ago as its first affordable-housing project. So far, the company has sold more than 3,000 housing units, costing between US$25,000 and US$50,000 each (two to four times the average annual income of most households in Ho Chi Minh City), making it the market leader of affordable-housing developments. This has contributed to fulfilling the estimated demand of about 70,000 housing units a year from low- to mid-income earners in the city.

 

In addition to the financing package, IFC is helping the company improve its environmental and social practices, and adopt higher energy-efficiency standards for its buildings.