Canada pledges $58mn to support Vietnam’s development projects

The aid comes as Vietnam has risen to upper-middle-income status, prompting some international donors to scale back assistance.

The announcement also signals a shift in the nature of Canada's support for Hanoi, Ottawa's largest trading partner in ASEAN.

The funds will back ten projects spanning climate change adaptation, biodiversity protection, and investment promotion.

The package will fund ten projects spanning climate change adaptation, biodiversity protection, and investment promotion.

Among them, the 'Impact Investment Readiness Vietnam' initiative will focus on businesses capable of generating social and environmental benefits.

The package includes CA$2 million ($1.44 million) to support women-owned small- and medium-sized enterprises, providing financing and technical assistance while expanding access to green loans.

As some donors have reduced aid in line with Vietnam's economic progress, Sarai said Canada's continued engagement reflects its recognition of the country's achievements.

"Canada is truly impressed by Vietnam's growth and success, which is why it is placing a stronger focus on Vietnam as one of its priority countries in the Indo-Pacific region," he explained.

Speaking to Tuoi Tre (Youth) newspaper in Hanoi, Sarai said cooperation between the two countries is mutually beneficial and reaffirmed Canada's commitment to expanding trade ties with Vietnam.

"If Vietnam grows well, Canada grows well," he added.

Since the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, trade between the two nations has risen significantly.

Sarai said Canada aims to double two-way trade over the next five to ten years, underscoring Ottawa's commitment to sustained investment in Vietnam.

Beyond trade, he identified renewable energy as a key area for collaboration.

Canada could share expertise in wind power and liquefied natural gas, as well as in nuclear energy, ranging from small modular reactors to large-scale power plants, to help meet Vietnam's growing energy needs.

Several projects supporting Vietnam's power transmission systems are currently awaiting approval.

Sarai stressed that Canada's assistance goes beyond financing, offering guidance on managing growth challenges and natural disasters to help Vietnam build resilience.

Since the 1990s, Canada has provided more than CA$1.9 billion ($1.37 billion) in non-refundable aid to Vietnam, contributing to the Southeast Asian country's development and prosperity.

Sarai said this funding demonstrates the effectiveness of Canadian assistance and reaffirmed Ottawa's desire to support Vietnam's next stage of growth.

In this new phase, Canadian assistance will focus on advanced manufacturing, financial support for women, socio-economic programs, strengthening small- and medium-sized enterprises, and sustainable supply chains.

Sarai described the effort as moving beyond traditional international aid toward a more strategic partnership.

He added that Canada remains committed to Vietnam and wants to see the country succeed, which will bring benefits to both sides.