November 17, 2025 | 17:10

A $5-million climate finance project launched in Vinh Long

Anh Hoang

The project serves as a pilot initiative to institutionalize innovative climate finance mechanisms in support of smallholder farmers, ethnic minority communities, and youth in Vietnam’s coastal regions to adapt to the increasingly severe impacts of climate change.

A $5-million climate finance project launched in Vinh Long
(Photo: VNA)

A new initiative to boost climate resilience and sustainable livelihoods in the Mekong Delta was launched recently in November by the International Fund for Agricultural Development (IFAD), in partnership with the Ministry of Agriculture and Environment and the Provincial People’s Committee of Vinh Long.

With $5 million in financing, the Innovative Financial Incentives for Adaptation in Wetland Livelihoods (IFIA) project aims to pilot and institutionalize innovative climate finance mechanisms in support of small-scale producers, ethnic minorities, and youth in the Delta region to adapt to the growing impacts of climate change in Vietnam’s coastal areas.

“This is not just a project—it’s a blueprint for inclusive climate finance,” said Mr. Ambrosio Barros, IFAD Country Director for Vietnam. “We are investing in solutions that work for both farmers and ecosystems. From participatory research grants to tailored financial products, IFIA is designed to be scalable, replicable and transformative.”

“The project empowers our communities to lead the way in climate adaptation,” said Mr. Nguyen Truc Son, Vice Chairman of the Vinh Long Provincial People’s Committee. “This is an opportunity to strengthen our local economies while protecting our natural resources.”

Representing the Vietnam Agency of Seas and Islands (VASI) under the Ministry of Natural Resources and Environment, Ms. Nguyen My Hang, Head of Science, Technology and International Cooperation Division, emphasized the project’s alignment with national priorities and the importance of strong partnerships.

“This project is timely and strategic. By embedding innovation into both finance and policy, we are creating a model for adaptive, inclusive and sustainable development in vulnerable coastal areas,” she said.

“The partnership between our Ministry, IFAD, and the provinces is crucial to ensure that resources, knowledge and innovations reach those who need them most. We expect this collaboration to generate models that can inform national policy and inspire broader climate action across Vietnam.”

The IFIA project is being implemented in wetland and mangrove areas of  the former provinces of Tra Vinh and Ben Tre (now Vinh Long province) to tematize learning, and institutionalize innovative financing instruments that can scale up adaptation in coastal livelihood activities such as eco-aquaculture, eco-tourism, and the sustainable use of non-timber forest products from mangroves. These approaches will contribute directly to the conservation and sustainable use of wetlands and mangrove forests in the Mekong Delta.

The project will run from June 2025 to June 2029, with a mid-term review scheduled for January 2027 and a terminal evaluation in December 2029. It is implemented by IFAD as a Multilateral Implementing Entity, with execution led by the Ministry of Agriculture and Environment and the Vinh Long Provincial People’s Committee.

IFIA will also be implemented alongside the ongoing CSAT - the Climate Smart Agricultural Value Chain Development project, which IFAD is actively delivering in the same locality. Together, these initiatives aim to strengthen private sector engagement with small-scale producers in advancing innovation and climate adaptation.

Attention
The original article is written and published on VnEconomy in Vietnamese, then translated into English by Askonomy – an AI platform developed by Vietnam Economic Times/VnEconomy – and published on En-VnEconomy. To read the full article, please use the Google Translate tool below to translate the content into your preferred language.
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