Nov 28, 2019 / 07:16

Germany pledges US$235 million in next two years for Vietnam's green growth

The Hanoitimes - The funding will focus on energy, environment, and vocational training in the next two years.

The government of Germany has pledged to finance EUR213.4 million (US$235 million) for Vietnam in the next two years to help the country pursue the green growth strategies.

Jutta Kranz-Plote, head of BMZ’s Policy Division for Asia, and reprentative of the Vietnam’s Ministry of Planning and Investment sign agreement in October. Photo: MPI

The funding, which includes EUR180 million worth of official development assistance (ODA) and EUR33.4 (US$36.7) of non-refundable aid by the German Federal Ministry for Economic Cooperation and Development (BMZ), would focus on energy, environment, and vocational training which had been highlighted in the governmental negotiations last month.

Scopes of the support would put a focus on promoting renewables and energy efficiency, expanding mangrove forests in the Mekong Delta, conducting sustainable forestry-based economic models in the north and central regions, according to the German Embassy in Hanoi.

Sustainable rice growing in Mekong Delta which is included in the “Green Innovation Centers” initiative is also part of the support. Accordingly, small-sized agricultural businesses in Mekong Delta would benefit from a supply chain.

In terms of vocational training, Vietnam and Germany encourage companies from both countries to participate in training for Vietnamese youth.

In addition, the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety (BMU) has pledged to finance EUR30 million (US$33 million) for biodiversity and climate protection projects in the next phase of International Climate Initiatives and EUR11 million (US$12 million) for several projects which mitigate plastic waste in Mekong Delta.

The aforementioned move indicates the cooperation for development – one of the key pillars in the strategic partnership which was leveled up in 2011.

This year’s governmental negotiations happened at a time when Vietnam is setting targets for the next 10-year socio-economic development while Germany is making comprehensive reforms on development cooperation to implement the Sustainable Development Goals (SDGs) agenda and climate change targets in the Paris Agreement.

Currently, Germany is Vietnam’s biggest trade partner in the European Union.