Ho Chi Minh City, Vietnam, February
27, 2014—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 $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 $25,000 and $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.
“IFC’s investment is a stamp of approval for our competitive advantage
in affordable housing and in Vietnam, especially given the funding constraints
in the capital markets now. This also serves as recognition of our strong
commitment to corporate governance and quality products,” said Nguyen
Vinh Tran, Chief Executive Officer of Nam Long Investment Corp.
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. With IFC’s advice, Nam Long is developing
a pilot building with green features that comply with Vietnam’s Building
Energy-Efficiency Code, which took effect on November 15 and aims to cut
energy costs and greenhouse-gas emissions. The new building is expected
to reduce energy consumption by 20 percent and is a step toward raising
industry standards and promoting sustainability and energy efficiency in
“Although the last few years have been
challenging for Vietnam's property market, there is still strong, fundamental
demand for affordable housing as Vietnam continues to urbanize,” said
Simon Andrews, IFC’s Regional Manager for Cambodia, Lao PDR, Myanmar,
Thailand, and Vietnam. “Nam Long sets the quality benchmark for affordable
housing in Vietnam with well-planned and well-built developments. By supporting
the company, we help more of Vietnam's growing middleclass achieve their
dreams of home ownership.”
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
About Nam Long Investment Corp.
Established in 1992, Nam Long Investment
Corp. is one of the leading residential real estate developers in southern
Vietnam. The corporation operates two key lines of business: affordable
housing that targets low- to mid-income and first-time homebuyers under
its EHome brand, and development of townships, which comprise mid- to high-end
apartments and townhouses. For more information, visit www.namlongvn.com.