A UN expert says Vietnam lacks financial wherewithal to respond to climate change because the country’s economic success will result in a decline in official development assistance (ODA). As the country rises economically, ODA funds it had counted on are likely to be diverted to poorer countries.
Vietnam’s government says it needs billions of dollars to deal with climate change, and $109 million for a current climate change project, half of which is sought from donors. So far Vietnam has received a commitment of $40 million from Denmark for its climate change response, and it is eligible for UN grants and loans linked to climate change resonse.
However, Vietnam has limited institutional or regulatory capacity to reduce climate vulnerabilities.