Sure, I can assist you with that. ## US Pledges Support for Vietnam in a Crucial Sector Impacting Over 14% of its GDP

It’s all about climate tech. These technologies focus on reducing greenhouse gas emissions or addressing the impacts of global warming, thereby helping communities, businesses, and governments understand the risks and develop solutions to adapt and enhance their resilience to climate change.

According to experts, as the world faces the impacts of climate change, trends in climate tech will be seen as pivotal in driving sustainable solutions by primarily focusing on reducing greenhouse gas emissions.

A recent World Bank study suggests that climate change could cost Vietnam approximately 12% – 14.5% of its GDP annually by 2050 and could push one million people into extreme poverty by 2030.

Climate change will affect Vietnam’s sustainable development goals. This requires Vietnam to transition its development model from a fossil fuel and natural resource-dependent economy to a green, low-carbon economy to adapt to climate change.

To achieve the development trajectory of adapting to the impacts of climate change and achieving net-zero emissions, Vietnam is expected to need to invest an additional 6.8% of its GDP, equivalent to $368 billion, from now until 2040.

In reality, climate tech startups in Vietnam have the potential to offer creative solutions. On this matter, the US pledges to continue supporting climate tech entrepreneurship in Vietnam.

On August 15, Dorothy McAulife, US President’s Special Envoy for Global Partnerships at the US State Department, delivered a speech at the Vietnam Climate Tech Startup Investment Connection Event. The program was co-organized by the US State Department, the US Embassy in Hanoi, and partners, including VMO Holdings JSC, the Postal and Telecommunications Institute of Technology (PTIT), and New Energy Nexus Vietnam.

At the beginning of her speech, Ms. Dorothy McAulife expressed her deepest condolences on the passing of the former General Secretary, Nguyen Phu Trong.

Ms. Dorothy McAulife stated, “The late General Secretary had a profound impact on US-Vietnam relations. Since General Secretary Nguyen Phu Trong stood with US President Joe Biden to declare a Comprehensive Strategic Partnership and affirm that our two nations would work together to achieve shared goals of peace, prosperity, and sustainable development, we have made significant progress in realizing those aspirations. Part of that was establishing the Climate Change Entrepreneurship (CCE) Hub to support climate tech founders in Hanoi.”

The US Special Envoy for Global Partnerships at the US State Department emphasized that the US is committed to continuing to support Vietnam in achieving its climate goals through agencies such as the US Agency for International Development (USAID), the US Environmental Protection Agency (EPA), the US Department of Energy (DOE), and the US International Development Finance Corporation (DFC).

These agencies are working to support Vietnam’s energy transition, develop carbon markets, protect forests and enhance agricultural resilience, and develop small and medium-sized enterprises.

The US pledges to support Vietnam in climate tech entrepreneurship

In reality, in March 2024, the US Export-Import Bank (US EXIM Bank) signed an MOU worth $500 million with the Vietnam Development Bank (VDB) for green energy exports.

“In our efforts to support climate entrepreneurship in Vietnam, we are grateful to have partners like VMO Technology Company and the Postal and Telecommunications Institute of Technology (PTIT). They have been instrumental in helping us launch the CCE Hub and advance the mission of CCE to empower startups focused on sustainable development worldwide,” said Dorothy McAulife.

In reality, since its launch in Hanoi in September 2023, the CCE Hub has welcomed new partners such as New Energy Nexus and the World Wide Fund for Nature (WWF).

“I am delighted to announce for the first time in public that my office at the US State Department will continue to collaborate with VMO Technology Company and New Energy Nexus Vietnam in the coming years,” shared Dorothy McAulife.

According to Dorothy McAulife, New Energy Nexus and the US State Department have committed to co-investing $450,000 over the next two years to help build the programs of the CCE Hub. This commitment aims to support climate tech founders across Southeast Asia and help them bring their solutions to market.

According to New Energy Nexus’ report, from 2015 to 2023, climate tech startups in Vietnam received 121 publicly disclosed funding deals, totaling $92.6 million in funding.