World Bank approves $145 million loan for flood resilience in central Viet Nam

World Bank approves $145 million loan for flood resilience in central Viet Nam
Banking & Financial Services
Webp sherman
Mariam J. Sherman Division Director for Viet Nam, Cambodia, and Lao PDR at World Bank | World Bank

The World Bank’s Board of Executive Directors has approved a new project aimed at improving flood protection and transportation links in Da Nang City and Gia Lai Province, two central regions of Viet Nam. The initiative is expected to benefit over 1.2 million people by enhancing flood defenses, creating safer evacuation routes, and ensuring more reliable access to markets and essential services.

The Integrated Resilient Development Project will address the frequent disruptions caused by storms and flooding that impact these economically significant areas. By focusing on a fast-growing coastal city and a highlands corridor connecting agricultural zones with the coast, the project seeks to minimize closures and detours that currently increase costs for businesses and residents while hindering logistics.

Mariam J. Sherman, World Bank Division Director for Viet Nam, Cambodia, and Lao PDR, stated: "Given the impacts of severe weather events, Viet Nam’s infrastructure really needs to be adapted for flooding and coastal resilience. 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 Da Nang City, planned activities include restoring river channels and constructing a flood bypass canal intended to reduce flooding in densely populated districts. These measures aim to protect key services such as schools and hospitals from storm-related interruptions. In Gia Lai Province, efforts will center on raising and strengthening critical roads and bridges to ensure year-round connectivity between the Central Highlands region and Quy Nhon Port—a major gateway for both agricultural products and industrial goods.

Improved transport links are anticipated to make conditions more favorable for private investment while supporting job creation in sectors like agriculture, trade, services, tourism, and local enterprises.

To finance this effort, the World Bank will provide nearly US$145 million in loans for the Integrated Resilient Development Project. The program aligns with Viet Nam’s national strategies focused on disaster risk management as well as sustainable infrastructure development.