World Bank support to boost flood resilience and connectivity in central Vietnam

The investment will provide more than 1.2 million people with better flood protection, safer evacuation routes, and more dependable access to markets and services.

The Integrated Resilient Development Project aims to reduce disruptions caused by storms and flooding, safeguard essential services, and ensure year-round access to key economic corridors. It targets two of Vietnam’s vulnerable yet economically important regions –⁠ a fast-growing coastal hub and a highlands corridor linking farms and factories to the coast. Cutting repeated closures and detours will lower costs for businesses and households while improving logistics efficiency.

"Given the impacts of severe weather events, Vietnam’s infrastructure really needs to be adapted for flooding and coastal resilience,” said Mariam J. Sherman, World Bank division director for Vietnam, Cambodia, and Laos. “This project focuses on keeping communities safe, promoting economic connections, and empowering provinces to manage infrastructure that creates more jobs and fosters sustainable lasting growth."

In Danang, the initiative will restore river channels and build a flood bypass canal to reduce inundation in densely populated districts and protect essential services such as schools and hospitals. In Gia Lai, the initiative will raise and reinforce key roads and bridges to maintain year-round access from the Central Highlands to Quy Nhon Port, a vital outlet for agricultural and industrial goods.

More reliable connectivity to ports and urban centres will reinforce the conditions for private investment and support job creation across agriculture, trade, and services. The improvements are also expected to open new opportunities for tourism and local enterprises.

The World Bank will provide a loan of nearly $145 million to support the Integrated Resilient Development Project, which is aligned with Vietnam’s national strategies on disaster risk management and sustainable infrastructure.

Vietnam's agricultural sector is experiencing significant growth, with exports reportedly yielding $62.4 billion in 2024, despite the challenges of climate change and pressures to meet international export standards.

While Vietnam is struggling with many challenges due to climate change, trade policy needs strong adjustments to encourage adaption, especially in directly affected areas such as agriculture and industry.

Vietnam stands at a critical juncture where ambitious development aspirations converge with urgent climate imperatives. Ramla Khalidi, resident representative in Vietnam of the United Nations Development Programme, delves into this dual challenge demanding an integrated financing approach, one that places national priorities at the centre.