A climate innovation centre will be set up in Vietnam to promote climate technology by offering venture finance and other support for small and medium enterprises.

Vietnam listed among nations hardest hit by climate change

As part of the centre design process, a workshop on barriers and solutions to climate technologies was held in Hanoi on November 15. It was attended by 120 stakeholders in both public and private sectors.

The centre will be designed and launched by InfoDev, a global partnership of the World Bank Group and a multi-donor programme that supports innovation and technology entrepreneurship in developing countries.

The centre would arrive at an opportune time as many environmental companies were asking for more support and funding for their business initiatives, said Huynh Kim Tuoc, vice president of the Vietnam Environmental Industry Business Association.

Tuoc said environmental technology enterprises in Vietnam lacked access to consultation and assistance.

Nguyen Van Phung, deputy director of the Tax Policy Department under the Ministry of Finance, said the Government had allotted a very small amount, around 1-2% of its budget, to developing technologies and promoting environmental innovation.

"Most of the money spent is only for research and studies," Phung said.

Government policies relating to climate technology innovation were not practical and consistent, which was likely to discourage enterprises from such initiatives.

Information from the workshop along with a business plan will be used to implement the centre.