Vietnam is increasingly affected by climate impacts, including storms, floods, and rising sea levels, which cost up to 1.5% of GDP annually. The Mekong Delta faces severe risks, with a potential displacement of millions and critical losses in agriculture and infrastructure.  

In early September 2024, Viet Nam was severely impacted by Typhoon Yagi, causing damage estimated at US$3.3 billion, devastating industrial hubs, farmlands, homes, and essential infrastructures.  Such extreme events put unbearable burdens on provinces, especially in poor and vulnerable regions. Addressing these challenges is essential for sustainable development and resilience. 

Exploring Financing Mechanisms 

Given the country's vulnerability, the Government of Viet Nam has made significant strides in proactively building a foundation for resilience and protection against L&D over the past decade. A number of policies, including the Disaster Law, Environmental Protection Law, Nationally Determined Contributions and National Adaptation Plan, have clearly articulated the increasing climate impacts and set out key measures to adapt to climate change. However, L&D remains an inevitable challenge that requires much-needed systematic financial solutions. 

UNDP is supporting the government in the assessment of the country’s vulnerabilities, reviewing viable financing mechanisms, and preparing actionable recommendations for international negotiations, including COP29.  

A recent technical meeting at the United Nations Green One UN House in Hanoi brought together key government representatives, financial experts, and development partners to tackle the growing challenges posed by climate-induced loss and damage (L&D) in Vietnam. Organized by the FCDO-supported Climate Finance Network (CFN), UNDP Vietnam, and the Department of Climate Change (DCC-MONRE), the meeting provided a platform to present findings from UNDP’s assessment of entry points for loss and damage in the climate policy landscape, regulatory framework and enabling environment in Viet Nam for both economic and non-economic L&D impacts. Discussions centred on what’s in place and what the next steps are to facilitate the country’s access to the fund for responding to loss and damage (FRLD) and other climate finance sources and mechanisms.