Ha Giang, Vinh Phuc and Hue enjoy nearly $224-million financing to develop green and resilient cities

The project will support environmentally sustainable and inclusive development in the provincial capital cities of Ha Giang, Vinh Yen and Hue to enhance their economic competitiveness.

“The ADB will help the cities of Ha Giang, Vinh Yen and Hue integrate green features into their urban infrastructure, such an energy efficient street lighting and nature-based embankments,” said Eric Sidgwick, ADB Country Director for Viet Nam. 

“Building on ADB’s support in preparing Green City Action Plans for the three cities, this project will demonstrate how the right mix of integrated urban planning and blended financing can improve livability, resilience and economic opportunities in cities.”

Because of rapid urbanization, almost all 31 million people living in cities in Viet Nam are facing emerging socioeconomic and environmental challenges. Unlike the five centrally administered cities, the development of secondary cities is lagging. Many communities in these cities are becoming increasingly vulnerable to climate change and disaster risks.

Secondary cities’ slow development not only prevents them from contributing to the country’s socioeconomic growth but also reduces job opportunities and results in worsening livable environments for locals and migrant workers. Responding to such a city’s complex socioeconomic and financial constraints requires strategic support in upstream city planning and the identification of effective investments.

The Government and ADB jointly selected Ha Giang, Vinh Yen and Hue as demonstration cities because they represent different socioeconomic characteristics, developments constraints, and geographic locations.

The total project investment includes $3 million in grant financing from the Global Environment Facility (GEF) and $3 million from the Urban Climate Change Resilience Trust Fund (UCCRTF), which is supported by the Rockefeller Foundation and the governments of Switzerland and the United Kingdom. In addition, the technical assistance accompanying the project is $12.8 million, of which $10.8 million will be financed by the GEF and $2 million by the UCCRTF.

“While demonstrating green city development, the project, supported by grant-financed technical assistance, which will also help formulate a regulatory framework for sustainable and resilient cities that will be scaled up for nationwide secondary green city development in Viet Nam and pilot test disaster risk financing for Hue,” Sidgwick added.

Expected to be completed in December 2023, the project will help the three cities improve green and resilient urban infrastructure services and scale up climate adaptation that will benefit about 116,000 households, including about 6,100 poor and near-poor households. For all subprojects, the Provincial People’s Committees—the executing agencies—will strengthen institutional capacity for urban development management.