IFC’s financing to boost sustainable tourism infrastructure in Vietnam and Lao PDR, create jobs

IFC’s financing to boost sustainable tourism infrastructure in Vietnam and Lao PDR, create jobs

IFC, a member of the World Bank Group, is providing a loan of up to $87.5 million to BIM Land Joint Stock Company, a leading property developer in Vietnam, to support the growth of sustainable tourism infrastructure in Vietnam and Lao PDR. This will attract an increasing number of domestic and international tourists, thereby creating jobs and bolstering local economies.

Tourism is one of the key growth drivers for both countries. In 2018, Vietnam recorded 15.5 million foreign visitors and Lao PDR attracted approximately 4.2 million international arrivals. However, when compared with Thailand, which receives 38 million visitors annually, both Vietnam and Lao PDR have significant potential for further growth.

One of Lao PDR’s significant challenges is the lack of quality accommodation facilities in Vientiane, the capital and gateway for most international tourists. Similarly, in Vietnam, the underdevelopment of emerging tourist destinations like Phu Quoc Island and Ha Long Bay can hinder the nation’s growing tourism. Against this backdrop, IFC’s long-term funding will be critical to enhance the quality of tourism infrastructure in both countries, attracting repeat visits and encouraging tourists to stay longer.

The project is expected to create approximately 1,400 jobs — 60 percent for women. Apart from local hiring and a relatively higher wage, the project will source around 90 percent of its goods and services locally. IFC will also share best practices to help the company enhance its performance.

“The tourism industry is a major contributor to employment, foreign exchange earnings, and tax revenues for developing countries,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Lao PDR. “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.”

In addition, in pursuit of a green and sustainable tourism business, BIM Land has committed to applying IFC’s Excellence in Design for Greater Efficiencies Green Building Certification System (EDGE) in its new hotels to be developed under this project with the aim of reducing energy, water, and material consumption by at least 20 percent compared with similar buildings.

Original source: IFC
Published on 16 September 2019