ADB offers Vietnam a US$170-million loan to develop the green cities

“Urbanization has had a positive impact on Viet Nam’s growth. But many cities, even as they continue to be the center of economic activities, lack key urban infrastructure services and remain vulnerable to climate change, particularly flooding,” said Satoshi Ishii, a Principal Urban Development Specialist at ADB.

ADB looks forward to working with Provincial People’s Committees of Thua Thien Hue, Vinh Phuc, and Ha Giang—administrative authorities of the capital cities of Hue, Vinh Yen and Ha Giang—to make sure that their provincial capitals are green and climate-resilient, while enhancing their economic competitiveness.

According to ADB, more than 30 million people live in urban centers in Viet Nam, but the impact of urbanization is uneven across the country. Unlike the capital Ha Noi and other highly developed urban centers, secondary cities—with populations between 50,000 to 300,000—such as Hue in central Viet Nam and Vinh Yen and Ha Giang in the northern part of the country are lagging behind. For instance, less than 60% of households in secondary cities have access to clean water and only 10% of wastewater is treated properly.

As stated by ADB, the Secondary Green Cities Development Project will help make these urban centers become more livable, environmentally friendly, and climate-resilient. 

For Vinh Yen, the project will construct a new wastewater treatment system, upgrade 66.1 kilometers (km) of drainage control, dredge the Dam Vac lake, and develop 44.5 hectares (ha) of new public green space. 

In Hue, the project will upgrade 21.9 km of drainage pipelines, rehabilitate 15.9 km of road surface and drainage, and develop 17.2 ha of green spaces, among others.

In Ha Giang, the project will upgrade about 7 km of urban drainage, protect 5.6 km of river embankments, and enhance the road urban network through a 6.2 km road and a 150-meter bridge to divert increasing traffic.

Apart from the loans, ADB will also administer a total of US$14.1 million in technical assistance (TA)—with the Ministry of Natural Resources and Environment—and US$6 million in grant investment from the Global Environment Facility and the Urban Climate Change Resilience Trust Fund. 

The TA will mainstream a green and resilient city development approach across government agencies through policy advice and capacity building, and replicate the approach in other cities in Viet Nam.