Australia and Germany provided US$63.7 million to the extended Climate Change and Coastal Ecosystems Program (CCCEP) in Vietnam.
The funds will be used to restore mangrove forests, build advanced sea dikes and educate coastal residents about sustainable cultivation techniques.
Under an agreement signed Friday, the program will be implemented in the Mekong Delta provinces of Kien Giang, An Giang, Ca Mau, Soc Trang and Bac Lieu between 2011 and 2016.
The program aims to efficiently manage and protect coastal ecosystems and to mitigate the environmental hazards posed by climate change.
Germany contributed $39.4 million worth of financial and technical assistance. The remaining funds were supplied by the Australian Government's Overseas Aid Program (AusAID).
The International Panel on Climate Change has identified Vietnam as one of the countries which will be severely affected by climate change.
The Mekong Delta and its densely populated lowlying communities face grave threats from rising sea levels and the increasing frequency and intensity of erratic weather, erosion and saline intrusion.