Over the last 30 years, Vietnam has seen remarkable economic growth, which has led to new challenges: growth in demand for energy, rapid urban development, and the arrival of a million young workers on the labour market every year, among others. In addition to these challenges, the country is faced with an urgent situation: its exposure to natural disasters and the effects of climate change. AFD is providing the country with support to implement the Paris Agreement. Its actions are focused on the energy transition, making cities and territories resilient and young people.
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Tan Cang Port, Vietnam
Bassin du fleuve Rouge, Vietnam

Meeting the challenges of climate change

Dam, climate change, Vietnam

Meeting the challenges of climate change

The AFD's strategy is to support Vietnam in moving towards a low carbon, resilient development path. AFD is deploying a wide range of "climate" activities in the country, one of the most extensive in any of the countries where it operates. In total, over the 2006-2017 period, €829 million was devoted to tackling climate change and adapting to its effects, through 26 projects and development programmes. The urban development, energy, agriculture and water management sectors are the subject of particular attention.

AFD is also involved in the dialogue on public policy with the Vietnamese authorities through the platform of the Support Program to Respond to Climate Change (SPRCC) and the monitoring of the implementation of the Intended Nationally Determined Contributions (INDC). Finally, it is also supporting the integration of issues related to the fight against climate change in all sectors of the economy and in the country's strategic documents.

Promoting sustainable urban development

Train, city, Vietnam


Vietnam has seen very rapid urbanisation over the last 30 years. By 2050, the cities are expected to be home to 60% of the Vietnamese population. The challenges are many: high urban density, increase in air, water and soil pollution, road congestion and inadequate public transport.

For many years AFD's interventions have been aimed at strengthening the resilience of cities and territories in the face of the impacts of climate change, natural hazards and disasters. In particular it supports the promotion of good-quality urban development that is respectful of the environment in order to reduce cities' vulnerability and mitigate greenhouse gas emissions. Our actions cover:

  • creation of sustainable facilities in urban spaces,
  • development of public transport (line 3 of the Hanoi Metro, the Hanoi-Lao Cai railway), public water and sanitation services, waste collection and treatment networks.
  • and integration of environmental issues in urban planning.

We are also investing, alongside the provincial authorities, in the area of integrated water resource management, in both urban and rural areas, with water infrastructure projects aimed at anticipating the risks of flooding (e.g. in the provinces of Ninh Binh, Ha Tinh and Can Tho and in the Binh Duong Province), drought, river and coastal erosion, the salinisation of arable land and rising sea levels. 

Facilitating the energy transition

Hanoï, Vietnam

Facilitating the energy transition

Vietnam's high growth rate is inducing a very fast increase in electricity production, which will be multiplied by four by 2030 compared to 2014. Although the development of renewable energies is occupying a growing place in the master plans, it is still lagging behind the development of coal.

In order to contribute to the mitigation of greenhouse gas emissions, AFD is striving to support the development of renewable energies in Vietnam. In particular we are financing, through support for Vietnam Electricity (EVN) or, in the near future, green credit lines, the development or extension of hydro-electric power plants, such as the Huoi Quang plant, the construction of solar farms and an increase in wind power capacity. We are also supporting the reinforcement of the electricity grid to allow the use of clean energy sources as a priority.

Investing in young people and social ties

student, vocational training, Vietnam

Investing in young people and social ties

AFD pays very particular attention to the social integration and employability of young people and vulnerable populations, in particular in promising industrial sectors. It is supporting the modernisation of the vocational training offer (including higher education) by adapting courses to businesses' needs, training teachers and taking account of issues like safety and the environment. For example, we support five technical training centres that guarantee decent work to the future skilled workforce.

We also provide backing for social integration and support programmes initiated by civil society that help to consolidate social ties.

Putting efforts into ideas

Woman, laboratory, vicational training, Vietnam

Putting efforts into ideas

AFD is a partnership-oriented agency and it works alongside local authorities and voluntary bodies, but also with international partners. For example, it is funding sociological studies on the consequences of climate change in the Red River Delta. It is also coordinating research programmes on coastal erosion or the Vietnam GEMMES model on the impact of climate damage. In addition, it supports different technical cooperation programmes, for example on the methodology of planning electricity distribution grids or resilient urban development.

We also contribute to raising the awareness of the population, especially young people, of key development issues. This led us to organise a competition inviting Vietnamese youngsters to express the notion of resilience in words and pictures.

billion euros committed in 25 years
projects funded in 25 years
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Vietnamese people get the benefit from our actions

On the edge of Southeast Asia, Vietnam stretches along the coast of the end Indochinese Peninsula. With a population of over 92 million, it is one of the fifteen most populous countries on the planet.

Vietnam has seen record development over the last thirty years. Opening up the economy and political reforms have borne fruit: for several years now, its annual growth rate has stood at 6%. As for the level of poverty, it has fallen, from 37% in 1998 to 8.2% in 2014. For the "new dragon of Southeast Asia", the issues have changed: today they are related to its rapid urbanisation, vulnerability to natural hazards and disasters and the challenge of climate change.

By 2025 Vietnam's population will have reached 100 million. A level of demographic growth that raises numerous issues: need for a rapid response to the increase in demand for energy, need to adapt the cities to the increase in the number of their inhabitants, need to train the millions of young people entering the job market every year and to improve productivity to make the country more competitive on the global stage. All of this while guaranteeing the social welfare of the population.

With its 3,260 km of coastline and two deltas, the Mekong Delta in the south and the Red River Delta in the north, Vietnam is one of the countries most vulnerable to the effects of climate change. In addition, weather-related hazards (rising water levels, flooding, drought) are affecting its coastal regions, cities and most important agricultural regions, thereby threatening production and the incomes of rural populations. Regularly affected by adverse events of this kind, the country has to adapt and take concrete action. As a signatory of the Paris Climate Agreement, Vietnam has undertaken to reduce its CO2 emissions by 8% by 2030 relative to the baseline scenario, and this could be increased to 25% thanks to foreign aid.

Present since 1994, AFD works in close collaboration with the Vietnamese authorities to help the country take the path of green, inclusive, resilient growth and fight against climate change. It offers an extensive range of financial instruments: sovereign and non-sovereign loans and grants to the State and public sector.

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Asia and Pacific | Vietnam

Vietnam : Training to Improve Decent Work

To resolve the shortage of qualified technicians in Vietnam, AFD is supporting the renovation and structuring of five technical training centers. These courses also offer young graduates better working and living conditions.


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