Additional EUR20 million in support of Vietnam’s efforts in response to climate change

The French Development Agency (AFD) and the Vietnamese Ministry of Finance on May 19 signed a credit agreement on the fifth tranche of the Support Programme to Respond to Climate Change (SP-RCC) in Vietnam.

Director of AFD in Vietnam Rémi Genevey (left), French Ambassador to Vietnam Jean-Noel Poirier, and Deputy Minister of Finance Truong Chi Trung sign the credit agreement in Hanoi on May 19. (Image credit: Nghiem Trung/NDO)
Director of AFD in Vietnam Rémi Genevey (left), French Ambassador to Vietnam Jean-Noel Poirier, and Deputy Minister of Finance Truong Chi Trung sign the credit agreement in Hanoi on May 19. (Image credit: Nghiem Trung/NDO)

The EUR20 million credit programme supports Vietnam’s reform agenda in various sectors for effective response to climate change and for the promotion of a low carbon development. The SPRCC budget support is disbursed based on the results of the policy dialogue and the reforms adopted.

Speaking at the signing, Deputy Minister of Finance Truong Chi Trung praised the importance of the agreement, saying that it was a key part of important support for Vietnam’s national strategy on climate change and green growth in the context of climate change.

French Ambassador to Vietnam Jean-Noel Poirier revealed that this fifth tranche for SPRCC has brought the total contribution of AFD to the SPRCC programme up to EUR100 million.

France was willing to support Vietnam – one of the most affected countries by the consequences of climate change − in adapting to the issue towards sustainable development, Ambassador Jean-Noel Poirier affirmed.

French Ambassador to Vietnam Jean-Noel Poirier speaks at the signing ceremony. (Image credit: Nghiem Trung/NDO)

In 2009, AFD and Japanese International Co-operation Agency jointly initiated the SPRCC programme by proposing to the Vietnamese authorities a budget support to assist actions related to the fight against climate change. Several international donors have since joined the programme including the World Bank.

In addition to the budget support, AFD has also financed technical assistance to the Government of Vietnam for the definition of energy efficiency targets in the steel sector, the preparation of an action plan on energy efficiency for buildings in Da Nang city, and the organisation of seminars for French-Vietnamese discussions on public expenditures tracking on climate and renewable energies.

Different reforms supported in SPRCC framework will be presented by Vietnam during its preparation for the Paris Climate Conference (21st Conference of the Parties – COP 21) to be held in Paris this December.

As response to climate change is one of the strategic orientations of AFD’s activities in Vietnam, the organisation provided EUR471 million to Vietnam through 16 development projects with climate co-benefits either in mitigation (public transport, energy) and adaptation (flood’s control, irrigation, agriculture) during the 2006-2014 period.

AFD has provided official development assistance from France to Vietnam since 1994. The cumulated ODA financing from AFD group to Vietnam has grown to more than EUR1.6 billion in 79 projects.