The Dutch Government has signed a deal for the construction of a sewage treatment plant in Vietnam.
The facility is expected to purify the wastewater of 174,000 people in Phu My, the port for Ho Chi Minh City.
The two nations also signed new co-operation agreements on making cities climate resilient and training water professionals.
The Netherlands is advising Vietnam on a sustainable long term approach for the Mekong Delta – which is said to be the one of the world’s most vulnerable in terms of climate change impacts – and Ho Chi Minh City.
The latter city is also dealing with the effects of climate change such as heavy rainfall, drought and flooding, according to the government.
The Dutch government is already funding three water supply and treatment projects worth €25 million (£20m).