Vietnam

The Vietnamese economy is growing by an average 6 % annually, and therefore faster than many other economies in Asia. However, energy consumption is growing even more rapidly at 10 %. At peak periods, demand from customers already exceeds available power. If the country is to safeguard its economic boom, it needs an environmentally friendly, reliable supply of power at an affordable price. This is why Germany is supporting Vietnam in expanding its renewable energy capacity and in making its distribution networks more efficient. Both approaches lower greenhouse gas emissions and reduce the impact on the environment. Germany and Vietnam have agreed on energy as a priority area, as sustainable energy provides the basis for competitive, widespread, green growth and, in turn, a green economy.

Project information - smart power grids  (PDF, 229 KB, non-accessible)

The more Vietnam becomes integrated in the global economy, the higher the quality required of its goods and services. Sufficient, qualified and productive specialist staff are needed for this, especially because Vietnamese industry is orientating itself more and more towards technology-intensive sectors. Yet, at present, only 32 % of workers have undergone corresponding training and only 15 % can provide proof of a formal vocational qualification. Vietnam is therefore faced with a dilemma. On the one hand, there is a lack of qualified workers with practice-based vocational training, on the other hand around 1.4 million entry-level employees flood the job market every year.

In cooperation with the German Gesellschaft für Internationale Zusammenarbeit (GIZ), KfW is supporting the Vietnamese government in expanding its vocational schools in various provinces. KfW is equipping schools and training institutes with machines, equipment, educational and teaching materials. KfW Development Bank is focusing particularly on the areas of electronics/electrotechnics, metalworking/mechatronics, information technology and textile manufacturing here. This allows the Vietnamese government to tailor its vocational training to its needs and boost quality.

In Vietnam, huge areas have been deforested since the 1970s. As a consequence of erosion, local populations have suffered from floods or droughts, depending on the season, because without the forests, the ground has hardly been able to absorb water. This has a negative impact on agriculture, which is the main source of income for most Vietnamese living in rural areas.

Since the mid-1990s, Vietnam has been continually reforesting, which has led to a country-wide increase in forest coverage. KfW Development Bank has been working in the Vietnamese forestry sector since 1995, especially in north and central Vietnam and since the end of 2012 also in protecting the coast of the Mekong Delta. To date, 100,000 families have benefited from this measure.

They generate an income that is 30 % higher than before, which benefits their children’s education. The savings book approach has already proved to be successful: the farmers are allowed to use all the wood and by-products. The families' land usage right is documented in the land register – the "red book". In return, the families undertake to reforest the land and sustainably manage the areas entrusted to them. As compensation they receive a "green savings book", guaranteeing them a savings deposit of 250 US-dollars per hectare of successfully reforested or managed area, depending on the type of forest. Interest is paid on this amount and the deposit is disbursed after six to nine years.

Project information – forest protection  (PDF, 145 KB, non-accessible)