Second Steering Committee meeting of the Finance for resilience project

The second Steering Committee meeting of the project Finance for resilience, financed by the Grand Duchy of Luxembourg and co-implemented by the City of Hue and LuxDev, the Luxembourg Development Cooperation Agency, was held in Hue City to review progress and agree on strategic directions for the next phase of implementation.

The meeting was co-chaired by Mr Hoang HAI MINH, vice chairman of the Hue City People’s Committee, and Mr Frank PEIFFER, head of Development Cooperation at the Embassy of the Grand Duchy of Luxembourg in the Lao PDR.

Since inception, the project has advanced the development of climate-resilient value chains and piloted innovative financial mechanisms. Three value chains – hibiscus, banana and almond grass – have been operationalised, involving 350 farmers and attracting private sector co-investment. In parallel, the project introduced agricultural value chain finance, shifting from collateral based lending to cash flow based financing. A major milestone was the issuance of the first no collateral loan under a value chain finance model by Agribank, demonstrating the feasibility of more inclusive financial solutions for more than 300 smallholder farmers.

Mr Hoang HAI MINH emphasised the broader significance of the project's work. He underlined:

Mr Frank PEIFFER reaffirmed Luxembourg’s long-standing partnership with Vietnam, in particular its support for Hue in building resilient, climate informed and inclusive economic growth by fostering climate smart agriculture, strengthening market linkages, and expanding responsible financial services, especially for women and vulnerable groups.

The Steering Committee confirmed that the project’s design remains highly relevant to addressing climate risks and livelihood challenges, particularly through its very successful market systems development approach and its focus on sustainable value chains. While recognising the strong progress achieved, the committee discussed challenges related to institutional restructuring, seasonal production cycles, and the time required for value chains to mature.

To address these factors, the committee reviewed a proposal for a no-cost extension of the project. This extension would allow the consolidation of initial results, the further development of value chain partnerships, and the institutional embedding of financial products, ensuring sustainable and scalable impact beyond the pilot phase.

The Finance for resilience project is advancing inclusive finance initiatives and promoting the sustainable transformation of agriculture, thereby strengthening climate and economic resilience through the agricultural value chain finance journey. It is funded by the Grand Duchy of Luxembourg and implemented by LuxDev, the Luxembourg Development Cooperation Agency.