Ready to launch two major projects

The launching ceremony was organized by the People's Committee of Thua Thien Hue province in collaboration with the Luxembourg Development Cooperation Agency (LuxDev). After a long period of survey and preparation, LuxDev as well as Hue are ready to launch two new projects, Project VIE/301 and VIE/039.

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Delegates beat the drum to launch two projects. Photo source: Agribank

Representing Thua Thien Hue, Provincial Party Committee member and Vice Chairman of the Provincial People's Committee Hoang Hai Minh said that the Provincial People's Committee will continue to direct relevant agencies and localities to closely coordinate with the project owner, LuxDev, to successfully implement the two projects VIE/039 and VIE/301, contributing to the development of an increasingly sustainable cooperative relationship between the Government of Luxembourg and Vietnam in general, and LuxDev and Thua Thien Hue province in particular.

Mr. Hoang Hai Minh suggested that the Department of Planning and Investment, as the project owner, closely coordinate with LuxDev based on lessons learned from previous projects, continue to update strategies, planning, and socio-economic development plans of Hue City for the period 2026 - 2031; initiatives, development models in the world and opinions from the community to replicate successful models.

Building new projects and product value chains towards approaching domestic and international markets; enhancing the application of circular economic models, sharing, green transformation, digital transformation to improve production and business efficiency, reduce production costs, enhance competitiveness of commodity value chains with the highest priority being aimed at the real subject of the project, which is to support people and small businesses to access markets, financial instruments, develop potential value chains in the province that are still developing on a small scale in agriculture such as livestock, cultivation and promote the development of community tourism, promote heritage and cultural values ​​and form cultural and creative industries.

Project support on financial access

The People's Committee of Thua Thien Hue province said that the "Project VIE/039 - Finance for Resilience - Promoting Climate-Smart Agriculture and Access to Finance in Thua Thien Hue Province" will be implemented for 2 years from 2025 - 2026 with a budget of 2 million Euros funded by the Government of Luxembourg and the Government of Vietnam. This project focuses on promoting the development of climate-smart agriculture, increasing access to finance for farmers and small businesses, especially women and vulnerable groups, improving market access, and strengthening public-private partnerships.

“Care Hue Project - VIE/301 - Climate Change Adaptation and Resilience in Thua Thien Hue Province, Vietnam” has a total funding of 10 million USD for a period of 5 years from 2025 to 2029. The project will replicate effective models from the VIE/039 project, while implementing innovative solutions in natural resource management, coastal development and ecological environment protection, contributing to enhancing climate change adaptation in vulnerable areas.

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Agribank delegation participated in the Launch Ceremony. Photo source: Agribank

Both projects are strategically linked to maximize their intended impacts. VIE/301’s climate change information services, ecosystem restoration, biodiversity enhancement and agro-environment services will be applied by VIE/039 to sustainable farming and business models that are highly resilient to climate change. These initiatives will open up important future investment opportunities in Thua Thien Hue province.

However, access to finance is a major obstacle to the widespread adoption of climate-resilient agriculture in Thua Thien Hue. The project plans to work with Agribank and local financial institutions as well as mass organizations such as the Women’s Union and the Farmers’ Union to enhance their understanding of gender-responsive climate change adaptation models. The main objectives are to improve financial and business management of rural households, promote responsible use of financial products, and develop appropriate lending practices for investment in climate-resilient agriculture.

Mr. Manuel Tonnar, General Director of LuxDev - Luxembourg Development Cooperation Agency shared: “Project VIE/039 and VIE/301 mark the first cooperation between LuxDev and a private partner - a commercial bank. Agribank plays a dual role in these two projects as it is not only the beneficiary receiving technical support from the project but also the financial service provider, implementing and disbursing loan packages suitable for each value chain for the project's target beneficiaries”.

The project aims to enhance the financial and business literacy of vulnerable groups to improve their resilience to climate change. At the same time, through the development of banking services and the promotion of the use of banking and financial products, agricultural value chains will become more bankable and resilient. In partnership with Agribank, the project will enhance financial literacy and business skills at the grassroots level and support organizations to identify and manage climate risks.

The CARe Hue project is implemented in parallel with Project VIE/039 with the aim of scaling up financial products for climate-resilient agriculture beyond Thua Thien Hue, leveraging Agribank’s extensive network in Vietnam. In addition, the project provides training and awareness raising activities on climate-resilient agriculture.

Ngoc Minh