The EU said that the sum will directly benefit 17,600 of the most vulnerable individuals in the hardest-hit provinces of Ben Tre, Binh Thuan, Gia Lai, Long An, Soc Trang, Tien Giang and Tra Vinh.
The prolonged drought caused by El Nino has had devastating consequences for hundreds of thousands of plantations as well as the lives of two million people in the southern and central parts of the country.
It is estimated that more than 400,000 families are lacking clean water, and about 400,000 hectares of crops have been destroyed.
The prolonged drought has also caused severe saltwater intrusion in 10 out of 13 provinces throughout the Mekong Delta, with saltwater intruding 20-25 kilometers further inland compared with seasonal averages
This EU-funding is a part of the €178,000 ($200,000) package allocated from the Disaster Relief Emergency Fund to help Vietnam deliver much-needed assistance to its poorest households.