During the State visit to Vietnam of French President Emmanuel Macron, two financing agreements were signed between the Ministry of Finance of Vietnam and the French Development Agency (AFD).

Vietnam is among the countries most exposed to the effects of climate change, with increasingly severe drought periods, particularly in the Central and Highlands regions. Ninh Thuan is the country’s driest province, with an average annual rainfall of only 700 to 800 mm, mostly happening from September to November. Water shortages are frequent, severely affecting agriculture, access to drinking water, and people's livelihoods. Climate change is worsening the situation by increasing temperatures and causing extreme variability in rainfall. The province declared several times a state of emergency in response to drought.

This €27.095 million sovereign loan from AFD aims to strengthen integrated water resources management in Ninh Thuan Province. An additional €1.7 million grant finances a technical assistance to support the institutional strengthening under the project, which includes €1.5 million from the European Union through the WARM Facility managed by AFD, and €0.2 million from the AFD.

The project will finance the construction of a 14.5 km pipeline between the Song Than and Lanh Ra reservoirs, securing water supply for 270 000 people, 8800 hectares of agricultural land, and several urban and industrial zones in the southern part of the province. It also includes enhanced technical support for the management, operation, and maintenance of the infrastructure, as well as for the promotion of water-efficient agricultural practices.

During the ceremony, H.E. Julien Guerrier, Ambassador of the European Union to Vietnam, praised the project’s concrete impact: “This is a major contribution which will support the province of Ninh Thuan to adapt to climate change, and contribute to Vietnam’s green transition in general. It is well aligned with the EU’s Global Gateway strategy, while also demonstrates clearly the values of the Team Europe’s close partnership with Vietnam”.

Mr. Olivier Brochet, Ambassador of France to Vietnam, added: “Through this flagship project, France reaffirms its support for a just climate transition and more resilient territories. AFD is mobilizing its expertise to support Vietnamese authorities in the face of growing climate challenges”.

The signing of this financing agreement is part of a strengthened strategic partnership between France, the European Union, and Vietnam, working together for a shared, resilient, and sustainable future.