Impacts of Climate Change and Financial Support on Household Livelihoods: Evidence from the Northwest Sub-Region of Vietnam

The study’s goal is to determine the amount of climate change’s impact on ethnic minority (EM) households’ livelihoods, as well as their adaptability to climate change and long-term viability. The research was conducted in Vietnam’s Northwestern Sub-region, where ethnic minorities account for more than half of the overall population. The study uses a combination of qualitative and quantitative methods based on a survey of 480 households in 04 provinces severely affected by climate change in the Northwest sub-region of Vietnam. The results show that: climate change (extreme weather events) occurs with increasing frequency, mainly affecting the life expectancy, health, and capital of households; Vulnerable groups (women, ethnic minorities) have a poor adaptive capacity and mainly suffer the consequences of shocks, are afraid to change their livelihoods; Microfinance plays an important role in enhancing the sustainability of livelihoods through increasing capital and financial assets and reducing the vulnerability of ethnic minority households. Finally, research has some solutions for microfinance - special credit specifically for ethnic minority households in the Northwest Sub-region: support for microfinance advice, home credit with transition orientations to adapt to climate change response and relieves its impact on the social lives.