Long-term World Bank funding will create thousands of hotel rooms, apartments and jobs
The World Bank’s International Finance Corporation (IFC) is extending a loan of up to USD87.5 million to Vietnamese property developer BIM Land Joint Stock Company.
The private lending branch of the World Bank aims to grow the sustainable tourism infrastructure in Vietnam and Laos, two increasingly visited Southeast Asian destinations with underdeveloped accommodations and facilities.
BIM Land plans to lavish the long-term funding on the creation of more than 1,500 hotel rooms and serviced apartments in Vientiane, Ha Long Bay, and Phu Quoc Island.
The financial boost to BIM Land is expected to generate 1,400 jobs, with a focus on local hiring. Around 60 percent of the vacancies are expected to be allotted to women.
“In alignment with government’s efforts, IFC’s loan to BIM Land will help create higher skilled job opportunities for the local workforce in Lao PDR and Vietnam, thereby strengthening supply chains, driving inclusive growth and enabling private sector participation,” said Kyle Kelhofer, IFC country manager for Vietnam, Cambodia and Lao PDR, in a statement.
BIM Land’s project with the IFC will source around 90 percent of goods and services locally. Following IFC’s Excellence in Design for Greater Efficiencies Green Building Certification System (EDGE) standards, the firm aims to reduce energy, water, and material consumption by at least 20 percent in the development of its hotels.
“The tourism industry is a major contributor to employment, foreign exchange earnings, and tax revenues for developing countries,” said Kelhofer.
The financing package to BIM Land includes a trust loan of up to USD37.5 million from the multi-investor Managed Co-Lending Portfolio Program (MCPP) under the IFC.
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