IFC invests $100 mln in SeABank to help buyers of budget homes
More lower- and middle-income families in Vietnam will be able to buy homes thanks to a $100 million investment in SeABank by the IFC, the World Bank’s investment arm.
Through the IFC investment, which aims to boost access to housing loans, the Hanoi-headquartered SeABank expects to at least double the number of lower and mid-end housing loans by 2026.
The project is expected to create thousands of new jobs in construction and other related sectors, the IFC added in a Tuesday release.
SeABank vice chairwoman Le Thu Thuy said: “The current housing demand among lower and middle-income families in Vietnam is considerably high, but their access to finance remains limited. The IFC’s funding will provide SeABank with stable long-term capital and help us strengthen our lending portfolio related to affordable housing, therefore, promoting access to housing finance, expanding the market and generating economic growth in Vietnam.”
As part of the investment, the IFC will also advise SeABank to develop dedicated housing finance products to better serve lower- and middle-income people, a key priority for the government of Vietnam, the global investment institution said.
Since 2021 the IFC has advised the Vietnamese bank in the areas of climate finance, the Banking on Women program, and environmental, social, and corporate governance (ESG).
“Limited housing supply along with rising demand has aggravated the housing shortage for lower- and middle-income earners in Vietnamese cities, leaving many people simply unable to access the funds they need to buy a home,” said Thomas Jacobs, IFC country manager for Vietnam, Cambodia and Laos.
“By supporting a leading player, the IFC will help address the shortage of affordable housing financing solutions and send a positive signal to the market, highlighting the viability of catering to this untapped market,” he added.
“We are optimistic this will have a catalytic effect on other banks, promoting a more competitive sector that’s better positioned to meet Vietnam’s growing housing needs, boosting the economy and delivering benefits for people.”
The IFC estimates that half of the Vietnamese population, about 50 million people, is expected to live in urban areas by 2040. This will create the need for an estimated 374,000 additional housing units every year. However, the limited availability of long-term funding has restricted the ability of domestic banks to grow their long-tenor lending books, including housing loans. This makes access to housing finance especially challenging for lower and middle-income homebuyers, the IFC said.
In Vietnam, the IFC has worked with both housing developers and banks to promote the availability of both affordable housing and housing finance that lower- and middle-income households can access.
In the fourth quarter of 2022, SeABank received a five-year convertible loan of $75 million from the IFC to support its growth and increase targeted lending to small- and medium-sized enterprises, and a $200 million loan from the U.S. International Development Finance Corporation (DFC) to support women-owned SMEs and for climate financing.
- Read More
Former Government Office chairman receives $7,900 bribe from property project
Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.
Society - Sat, November 2, 2024 | 9:13 pm GMT+7
Thai food giant CP enters public-private partnership to promote food system transformation
Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.
Companies - Sat, November 2, 2024 | 7:16 pm GMT+7
Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year
Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.
Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7
Vietnam likely to grow 6.5% in 2024-2025: VinaCapital
VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.
Economy - Sat, November 2, 2024 | 2:00 pm GMT+7
Major Vietnamese developer Novaland appoints new CEO
Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.
Companies - Sat, November 2, 2024 | 10:24 am GMT+7
Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3
Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.
Southeast Asia - Sat, November 2, 2024 | 9:41 am GMT+7
ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout
Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.
Companies - Sat, November 2, 2024 | 9:13 am GMT+7
Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex
Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.
Industries - Sat, November 2, 2024 | 8:00 am GMT+7
Vietnam becomes Australia’s fastest-growing inbound market
The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.
Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7
Study finds shift in Thai consumers’ spending patterns
Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).
Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7
Energy security, digitalization key to Indonesia's economic growth
The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.
Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7
Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM
Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.
Politics - Fri, November 1, 2024 | 9:25 pm GMT+7
Vietnam, Qatar look to tap potential for energy, oil & gas collaboration
Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.
Politics - Fri, November 1, 2024 | 9:02 pm GMT+7
Thailand bans export of raw palm oil until December
Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
Southeast Asia - Fri, November 1, 2024 | 8:31 pm GMT+7
Envision Energy to build $420 mln wind power plant in Vietnam from June 2025
Envision Energy Singapore Pte Ltd, under China-based Envision Energy, aims to kick off construction of the 300-MW Envision Nam Po wind power plant in Vietnam’s northern mountainous province of Dien Bien in June 2025.
Energy - Fri, November 1, 2024 | 8:30 pm GMT+7
Indonesia to ban plastic waste imports from 2025
The Indonesian government will start imposing a ban on the import of plastic waste from the beginning of next year, according to Minister of Environment Hanif Faisol Nurrofiq.
Southeast Asia - Fri, November 1, 2024 | 8:29 pm GMT+7
- Consulting
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
In trade and investment, ASEAN and China are better together
-
AI can be a game changer for Vietnam tourism
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?