Switzerland Pledges $50 Million to Support Vietnam’s Sustainable Development

Switzerland reaffirmed its commitment to Vietnam's sustainable development on 30 May 2025 by signing a new USD 50 million cooperation program. The Swiss State Secretariat for Economic Affairs (SECO) will fund the program between 2025 and 2028 to strengthen bilateral relations and drive long-term agendas in innovation, trade, climate resilience, and finance. The commitment is the 35th anniversary of Switzerland's and Vietnam's cooperation in development and follows the overall policy of Switzerland in developing countries to support economic development.

Since 1991, Swiss assistance to Vietnam has progressed beyond the initial focus on reducing poverty to an entire array of development goals like law reform, entrepreneurship, sustainable finance, and institution-building. Switzerland has committed over 650 million Swiss francs (USD 800 million) of official development assistance to Vietnam so far. They have fortified Vietnam's legal systems, improved the stability of the financial system, and encouraged an environment of greater attractiveness for small and medium-sized enterprises (SMEs).

The extra USD 50 million under the 2025–2028 Cooperation Programme will be directed to three top priorities: promoting sustainable trade and innovation, strengthening public and private finance systems, and building climate-resilient cities and industries. These programmes seek to assist Vietnam in realizing its vision to become a high-income economy by 2045 and net-zero carbon by 2050.

There have already been great advancements in several sectors in Vietnam by Switzerland-funded projects. Over 60 organizations have received the trade support programs and more than 10,000 companies have been helped with the implementation of green production practices. Access to investment channels for green business models, capacity building, and technical assistance are some of the assistance it includes.

Innovation sector too has seen enormous expansion. In the last five years alone, more than 2,000 startup founders have collectively raised CHF 124 million (approximately USD 138 million) of capital through these programs. These investments not only enriched Vietnam's startup ecosystem but also promoted green technologies and digital solutions.

SMEs have also been the strongest beneficiaries of Swiss development efforts. Through several credit schemes that target sustainability and innovation objectives, Vietnamese SMEs have received a combined value of USD 33 billion in financing. The schemes have helped to build stronger, more resilient businesses that are capable of competing both within and outside Vietnam.

Ecological benefits promoted by Swiss programs include rejuvenating older industrial districts to eco-industrial parks. These parks maximize the efficiency of resources used and minimize environmental impacts, conserving 850,000 cubic metres of water per annum and lowering carbon emissions by nearly 40,000 tonnes. Such benefits reveal that economic growth and environmental preservation can coexist.

The Cooperation Programme 2025–2028 will continue this double priority of economic and environmental sustainability. In line with the aspiration to prioritize climate-change resilient urbanization and sustainable finance, the new programme will seek to continue transplanted sustainability into Vietnam's model of development. It also helps the country pursue its climate objectives, as set out in its global commitments under the Paris Agreement.

Vietnam has been classified as an SECO priority country in economic cooperation policy globally since 2013. The long-term collaboration is a reflection of the trust reposed in the Vietnamese economic model and its potential to deliver sustainable outcomes. The collaboration also reflects Switzerland's overall development policy with innovation, private sector, and climate adjustment being accorded priorities in the emerging economies.

The common vision acts to reinforce the necessity of international long-term coordination in working towards sustainable development objectives. Since Vietnam is forging its own direction towards achieving growth and balance of climate action, development partners such as Switzerland play a fundamental role in offering cheap resources and expertise required.

The new funding disclosure is an addition to the extended partnership that has already yielded real dividends. As Vietnam approaches being at the cusp of a second phase of its green transformation, Switzerland's support in the 2025–2028 programme will be poised to solidify its ability to develop an inclusive, innovative, and climate-resilient economy.

Source:
Reporting by Vietnam Net Global