France on Thursday provided a EUR20 million (US$26.8 million) loan for the ongoing Support Program to Respond to Climate Change (SP-RCC) in Vietnam.
The loan agreement was signed by Jean Marc Gravellini, director of the French Development Agency (AFD) in Hanoi, and Nguyen Thanh Do, chief of the Vietnam Finance Ministry's Debt Management and External Finance, in the capital city.
In 2010, AFD and the Japan International Cooperation Agency (JICA) signed an agreement to provide Vietnam with US$134 million for the three-year SP-RCC, a policy-based lending support initiative devised by Japan to assist developing countries tackle climate change impacts.
Under the agreement, Japan will provide around US$110 million of the funding.
According to JICA, SP-RCC supports the implementation of Vietnam's National Target Program to Respond to Climate Change, with the funding being put directly into the national budget instead of in different projects.
Vietnam is one of the five countries forecast to be hardest hit by climate change. If the sea level rises by 1 meter, nearly 5 percent of land, 11 percent of the population and 7 percent of agricultural land in Vietnam will be affected.