Vietnam to Borrow $224M from ADB for Green Growth in Secondary Cities

Vietnam’s Prime Minister Nguyen Tan Dung has approved a project on sustainable growth in secondary cities of rapid urbanization, costing $224 million to be funded by the Asian Development Bank (ADB). The project aims to optimize development impact by adding to climate adaptation infrastructure in Ha Tinh town in the central province of Ha Tinh, Tam Ky town in the central province of Quang Nam and Buon Ma Thuot town in the Central Highlands province of Dak Lak in the next five years. The localities selected for the funding are thanks to its significant roles in economic development in Vietnam. Ha Tinh provides strategic connectivity within the Greater Mekong Subregion. Tam Ky comprises the Chu Lai special economic zone which helps push up economy for the central coastal of Vietnam while Buon Ma Thuot contributes one-third of Vietnam’s total coffee exports. The project will finance urban environment improvement infrastructure through 11 subprojects, including (i) solid waste management (SWM) for improved environmental quality; (ii) urban road upgrading for improved connectivity and evacuation during disasters; and (iii) completion of flood dikes, drainage channels, and regulating basins for flood protection. Vietnam’s population and economy are rapidly urbanizing with a structural shift from agriculture to industry and services, which account for nearly 80% of the economy since 2005. These sectors are key contributors to urban expansion and the rural to urban transition. Although urban poverty is significantly reduced, inequality in income and access to basic services remain. Natural disasters and climate-induced impacts add to the associated social, economic, and environment costs of rapid urbanization, especially in the secondary cities with limited capacity to address consequences of rapid urbanization. The challenge for Vietnam is to maintain its long-term development prospects by minimizing risks associated with urbanization. Adapting critical infrastructure by building climate resilience in coastal and low-lying areas will safeguard vulnerable populations and productive sectors of the economy, including its natural resources. (Baodautu.vn Mar 11, Adb.org)