IFC invests $100m in SeABank to boost affordable housing in Vietnam: Nikkei Asia

The investment aims to target low and middle-income borrowers in the country, which requires 374,000 new homes each year. 

The IFC hopes that this investment will have a "catalytic effect" on other banks and will help address the housing shortage faced by low and middle-income homebuyers.

SeABank has stated that it will double the mortgages it offers for low- and mid-end homes by 2026, which is expected to contribute to thousands of new construction and related jobs. 

However, the investment does not address the more chronic problem of supply in Vietnamese real estate, which has been a challenge in the country. 

The supply-demand mismatch has been exacerbated by a corruption crackdown, rising interest rates, and higher construction costs, which have put off builders and buyers.

Despite the challenges, the IFC remains optimistic that its investment in SeABank will help boost the affordable housing sector in Vietnam. 

With the state having limited success in promoting social housing, the IFC hopes that its investment will make a significant impact in the fast-growing economy.

Source: Nikkei Asia