PM: Specific financial mechanism needed for Mekong Delta in climate change adaption

PM Nguyen Xuan Phuc attends the conference on evaluation of two-year implementation of the Government’s Resolution No. 120 on climate resilient and sustainable development of the Mekong Delta held in Ho Chi Minh City, June 18, 2019 - Photo: VGP/Thanh Chung

PM Nguyen Xuan Phuc made that statement while attending the conference on evaluation of two-year implementation of the Government’s Resolution No. 120 on climate resilient and sustainable development of the Mekong Delta held on June 18 in Ho Chi Minh City. 

According to the reports of international organizations, Viet Nam has been listed among top 10 nations most seriously suffering from climate change in Asia. The Asian Development Bank (ADB) estimated that nearly 55% of the Vietnamese population will be hurt from the natural threats.

As many as 20 million people are residing the Mekong Delta, making contributions to 20% of the nation’s total GDP (including Ho Chi Minh City and localities in the Southeast, the figure makes up 60% of the nation’s total GDP).  

Speaking at the event, PM Phuc called on scientists, consultancy organizations, authorities at all levels, business community and especially local people to participate in successfully realizing the Resolution No.120. 

He required establishing the best business environment for enterprises and enhancing the flexibility of policies and economic factors to launch more projects that help harmonize impacts of climate change and sea-level rise.      

Regarding the capital market in the Mekong Delta, the Government chief suggested forming investment funds and mechanisms to mobilize more capital for lending to strengthen capacity for economic sectors. 

It is necessary to build a national key program for the region, consider diversifying resources from the State, localities, ODA and FDI with the committed additional capital of US$2 billion higher than in the 2016-2020 period for the Mekong Delta.  

Phuc requested to give priority to investments in infrastructure, especially Ho Chi Minh City-Trung Luong-My Thuan Expressway. 

Localities must enhance regional connectivity in coping with climate change, he said, asking Ho Chi Minh City to take the lead in effectively coordinating the regional connectivity mechanism. 

He proposed the Ministry of Finance consider launching an emission tax mechanism to encourage the reduction of greenhouse gas emission.

By Thuy Dung