Review of Financial Sources for Developing Green Infrastructure at Provincial Level in Viet Nam

As a country severely affected by climate change, Viet Nam needs a significant scaling-up of investment in green infrastructure to build resilience as well as to move its current carbon-dependent development onto a more sustainable path and towards its Nationally Determined Contribution (NDC) commitments. 

The IKI funded project “Support to Viet Nam for the Implementation of the Paris Agreement” (short: “VN-SIPA”) assists the Vietnamese government in the implementation of its climate change targets in the context of the Paris Agreement, as laid out in its NDC. In the framework of VN-SIPA, three urban EbA measures were piloted in Dong Hoi city of Quang Binh province since it is situated in a topographical and climatic region that makes the city vulnerable to climate change impacts with an expected increase in frequency and intensity of climate events. However, similarly to other provinces in Viet Nam, there are limits and challenges to allocate and call for funds to implement such EbA measures. 

In order to gain access to more sustainable financing sources, as well as help provinces and cities like Quang Binh and Dong Hoi proactively implement EbA solutions, the report aims to analyse and make recommendations on potential opportunities to access government funds to invest in EbA projects. The report thus aims to produce a thorough review of existing domestic sources and financial mechanisms to develop green EbA infrastructure in Viet Nam, with Dong Hoi city as a case study. Based on the review, this report also provides recommendations for related stakeholders at different levels to access those financial sources.