Challenging climate change
Developing sustainable energy
Promoting sustainable urban development
Supporting the productive sector
Acting with civil society
On the edge of Southeast Asia, Vietnam stretches along the coast of the Indochinese peninsula. With more than 92 million inhabitants, it is one of the fifteen most densely populated countries in the world.
Vietnam has experienced very fast-growing record in the past 30 years. The economic opening and political reforms undertaken in 1986 have given good result. For several years, its annual economic growth has been 6%. As for the poverty rate, it has dropped from 37% in 1998 to 8.2% in 2014. For the so-called "new Southeast Asian dragon," the challenges have changed. These are now linked to its rapid urbanisation, vulnerability to hazards and natural disasters as well as the challenge of climate change.
That is because Vietnam will have by 2025 more than 100 million inhabitants. A demographic growth that raises many issues. Therefore, we must quickly respond to the increase in energy demand, adapt cities to the increased number of urban dwellers, train the one million new young people who arrive every year on the workforce and improve productivity for global competitiveness. All while guaranteeing the social well-being of the population.
With 3,260 km of coastline and two deltas, the Mekong River to the south and Red River to the north, Vietnam is one of the most vulnerable countries to climate change. In addition, meteorological hazards (rising water levels, floods, drought) affect its coastal regions, cities and agricultural regions, threatening the production and income of the rural population. The country is regularly affected and must adapt by implementing realistic actions. Signatory to the Paris climate agreement, Vietnam has also committed to reduce its CO2 emission by 8% by 2030 compared to the baseline scenario, which could be increased to 25% with support from foreign aid.
Present since 1994, AFD works in close collaboration with the Vietnamese authorities to help the country taking a path of green, inclusive and resilient growth and to fight against climate change. With a wide range of financial instruments combining sovereign, non-sovereign and grant loans, we have financed 84 projects worth nearly €1.9 billion.