On 15 March 2024, the financing agreements of two climate change adaptation projects in the central provinces of Quang Nam and Quang Tri respectively were officially handed over today from the Vietnamese Ministry of Finance to the French Agency for Development (AFD). The two projects include the “Coastal sustainable and preventive protection in Quang Nam province” and “Central coastal urban development towards green growth and response to climate change in Dong Ha city, Quang Tri province”.

Handover ceremony of the financing agreements between the Deputy Minister of Finance and Country Director of AFD Vietnam

In addition to the handover ceremony, the Ministry of Finance signed two separate on-lending agreements with the representatives of the People's Committees of Quang Nam and Quang Tri provinces to implement the investment projects funded by AFD loan in these two provinces. Both projects are supported with Technical Assistance by the European Union–funded Water and Natural Resources Management (WARM) Facility aiming to reinforce the capacity of local authorities in project management, implementation of adaptation measures, and the local population’s resilience to climate change.

Signing the two separate on-lending agreements between the Department of Debt Management and External Finance and representatives of the two provinces

Attending the ceremony were Deputy Minister of Finance Vo Thanh Hung,  representatives of the Government Office, Ministry of Planning and Investment, Ministry of Justice, and Ministry of Foreign Affairs, Mr. Peteris Ustubs - Director for Middle East, Asia and Pacific of the European Commission’s International Partnerships Directorate, H.E. Mr. Julien Guerrier - EU Ambassador to Vietnam, H.E. Mr. Olivier Brochet - French Ambassador to Vietnam, Mr. Hervé Conan, Country Director of AFD.

Overview of the ceremony

Vietnam faces considerable risks from climate change impacts like coastal erosion and flooding due to rising temperatures, sea levels, and extreme weather events exacerbated by population growth and urbanization. This is evidenced in Quang Nam province which saw intensifying coastal erosion over the last decade damaging property and tourism. Similarly, in Quang Tri province, the city of Dong Ha frequently floods, subsides, and experiences salinization and drought undermining safety, lives, and deteriorating infrastructure. These central provinces illustrate Vietnam's vulnerability to climate change hazards if adaptation is not strengthened.

Speaking at the event, Deputy Minister of Finance Vo Thanh Hung expressed gratitude to the EU and AFD for supporting Vietnam to implement its climate commitments and strengthen its resilience to impacts of climate change. He emphasised Vietnam’s expectation to enhance this partnership to reach the goals set forth in the country’s socio-economic development policy, particularly supporting provinces and cities in implementing initiatives that will lessen the effects of climate change, strengthen resilience, and promote green growth.

Deputy Minister of Finance Vo Thanh Hung spoke at the event

Speaking on behalf of the European Union, Mr Peteris Ustubs said “Investing in projects like those supported by the WARM Facility not only strengthens local communities' resilience but also contributes to efforts in addressing global climate change effects. These initiatives are in line with the EU's Global Gateway strategy to narrow the global investment gap, and are a testament to the EU’s commitment to be a faithful partner of Vietnam in climate action and sustainable development.”

Mr Peteris Ustubs - Director for Middle East, Asia and Pacific of the European Commission’s International Partnerships Directorate shared the European Union’s vision.

Mr. Olivier Brochet also shared: “France through AFD has the ambition to support VietNam in its climate priorities through a range of climate projects at provincial level, amongst them Quang Nam project to cope with coastal erosion related issues, and Quang Tri project to improve the infrastructure system adapting to flooding risks, with an aim to ease the economic growth and improve the living conditions of local population. These two projects are supported by WARM Facility to implement technical assistance that helps strengthen their capacity toward an integrated coastal zone and urban resilience management.”

Mr. Olivier Brochet - French Ambassador to Vietnam, stressed on France’s support to Vietnam through AFD