Hanoi, September 25, 2019 — IFC, a member of the World Bank Group, is supporting Phu My Hung Development Corporation to expand housing projects to secondary provinces in Vietnam, improving access to quality housing as well as education and health-care services for local residents. The aim is to promote integration and inclusive growth across Vietnam.
IFC is subscribing to a VND1.7 trillion (approximately $75 million) bond issued by Phu My Hung, an established real estate developer in Vietnam with a focus on supplying quality housing stock to an emerging population of middle-class citizens. The proceeds will be primarily used to develop an integrated township in rural Hoa Binh province over the next 15-20 years.
Rurally located with limited transportation infrastructure 60 kilometers west of Hanoi, the Phu Hung Khang township will on completion provide over 1,000 new homes, two schools, and a hospital. A 75-room hotel will also be built to tap into the area’s tourism potential. The project is expected to create more than 1,000 jobs for local communities, including ethnic minorities, providing opportunities to diversify income sources in addition to agriculture.
“With this investment, we are now well-positioned to focus on developing new integrated townships in a number of secondary provinces, starting with Phu Hung Khang township, as part of a sustainable growth model. We believe the model of the New City Center — an urban township located in District 7 of Ho Chi Minh City recognized by the Harvard Business Review as a sustainable city with efficient water, power, and transit solutions — can and should be replicated,” said Gary Tseng, CEO of Phu My Hung. “Longer term, we see this as an opportunity to develop a strategic relationship with IFC to set higher market standards as the Vietnamese real estate sector continues to evolve.”
To promote sustainable urbanization, IFC will support the company to adopt environmental and social best practices, including community development and livelihood restoration. The project will also apply IFC’s Excellence in Design for Greater Efficiencies (EDGE) green building certification system to reduce consumption of energy, water, and embodied energy in materials by at least 20 percent compared to similar housing projects.
“This investment will deliver quality and climate-friendly accommodation to people working in and around Hanoi, thus easing the pressure on the fast-growing capital, and provide jobs and income for local communities,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Lao PDR. “IFC’s financing for one of the first multi-phase projects in a secondary province showcases IFC’s catalytic role in promoting private sector participation in rural development and inclusive growth.”
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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