According to VNA, the Vietnamese Ministry of Finance (MoF) and the French Development Agency (AFD) have recently signed and exchanged an agreement to fund two green projects in Vietnam worth USD 80 million.
The agreement will support the Hoi An anti-erosion and sustainable coastal protection project in the central province of Quang Nam, as well as the central coastal urban development project for green growth and climate change response in Dong Ha city, Quang Tri province.
Prior to this, on December 29, 2023, the MoF signed loan agreements with AFD and non-refundable grant agreements from the European Union (EU) – delegated through the AFD – for the aforementioned projects.
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| At the signing ceremony on March 15 in Hanoi. Photo: VNA |
Deputy Minister of Finance Vo Thanh Hung stated at the event that the loan amount further solidifies AFD’s position as Vietnam’s largest bilateral donor in Europe, highlighting the French Government’s commitment to strengthening the strategic partnership with Vietnam.
The AFD loan is accompanied by non-refundable aid from the European Union (EU), aimed at improving project effectiveness and supporting localities in enhancing their capacity to operate projects and undertake climate change adaptation activities.
Peteris Ustubs, European Commission Director for the Middle East, Asia, and the Pacific, emphasized that investing in projects funded by the Water and Natural Resources Management Facility (WARM) not only helps strengthen the resilience of local communities, but also contributes to the global fight against climate change. These projects align with the EU’s Global Gateway Initiative, demonstrating the EU’s commitment to being a reliable partner of Vietnam in climate action and sustainable development.
Meanwhile, Oliver Brochet, French Ambassador to Vietnam, expressed the French Government’s support for Vietnam in implementing priority climate goals through investment projects. These projects include mitigation projects to restore coastal erosion in Quang Nam province and infrastructure strengthening to address flooding issues in order to ensure economic development and improve living conditions for local people through nature-based solutions in Quang Tri province.
On this occasion, representatives from the MoF, the People’s Committees of Quang Nam and Quang Tri provinces also signed loan agreements to redistribute AFD loans from the central to local budgets, ensuring seamless capital transfer and project effectiveness.
