Viet Nam is one of the countries to be hardest hit by climate change. Rising sea levels, more frequent and severe storms and soil salinisation are impacting negatively on the rural population’s sources of livelihood, for instance rice production. The local authorities and the population lack the capacities and resources needed to adapt to these changing conditions. Moreover, economic pressure and poverty are encouraging unsustainable natural resource management practices. The changing climate means that Viet Nam is now also facing new challenges of coastal zone management.

Viet Nam’s remarkable economic growth in recent years has been accompanied by rapid structural changes, which in many cases have neglected ecological considerations. The poverty-induced overexploitation of Viet Nam’s ecosystems is threatening in the long term to irreversibly destroy natural resources, especially forests, soils and water. In addition, rapid population growth is causing infrastructural bottlenecks. Existing sewage and waste disposal systems, for instance, are proving insufficient, and traffic congestion is becoming a major problem especially in metropolitan areas. 

GTZ's partner at the national level is the Ministry of Agriculture and Rural Development (MARD), with local government institutions and departments serving as implementation partners. GTZ is also collaborating with other donors in the areas of environmental protection, natural resource management and poverty alleviation.

Supported by GTZ and other donors, current reform initiatives are positively impacting on national and local policies and administrative structures for rural development and environmental protection. Improvements in land use planning, zoning, environmental standards and integrated agroforestry approaches, the reorganisation of state-owned enterprises and a clear distribution of powers are all leading to socioeconomic and ecological progress in rural areas. GTZ’s urban development programme includes a project that is advising Viet Nam's Ministry of Construction and local policymakers on sewage and waste disposal. The project has been rolled out initially in six provincial capitals and will run to 2011. Further towns and cities are to be added in the course of 2010, and the project will be extended to include environmentally sound urban planning and the setup of a modern city bus system in the city of Danang.

GTZ’s projects employ an integrated approach that links practical experience gained on the ground with conceptual work carried out at the ministerial level. Interdisciplinary working groups and committees create a blend of international and Vietnamese expertise. This provides public and private sector partners in Viet Nam with access to international experience and know-how, enabling them to address the challenges facing their country more effectively.