Meeting the challenges of climate change
Promoting sustainable urban development
Facilitating the energy transition
Investing in young people and social link
Putting efforts into ideas
Over the last 30 years, Vietnam has known remarkable economic growth, transforming what was one of the world’s poorest nations into a lower middle-income country. Between 2002 and 2018, GDP per capita increased by almost three times and reached $2700 in 2019 allowing more than 45 million people to escape poverty. The country experienced rapid demographic and social changes. Its population reached 96.5 million in 2019 (multiplied by 1.6 in 33 years) and is expected to expand to 120 million by 2050. Vietnam also experience the emergence of a middle class, counting for 13% of the population nowadays, 26% by 2026.
These changes pose new challenges to the country, such as rapid urban development, increasing energy demand and the arrival of a million young workers on the labour market every year. In addition, Vietnam’s population and economy is highly vulnerable to natural disasters and the effects of climate change.
Present since 1994, AFD works in close collaboration with the Vietnamese authorities to assist the implementation of the Paris Agreement especially through the areas of energy transition, resilience of cities and territories and youth. It offers an extensive range of financial instruments: sovereign and non-sovereign loans and grants to the State and public sector.