Inclusive insurance and risk financing in Viet Nam. Snapshot and way forward 2023

Inclusive insurance and risk financing in Viet Nam. Snapshot and way forward 2023

September 13, 2023

This report presents the main findings of UNDP’s inclusive insurance and risk finance country diagnostic for Viet Nam. It sets out key risks, the current inclusive insurance and disaster risk finance landscape, and recommendations to advance inclusive insurance, risk finance and development.

Viet Nam’s top hazards include floods, storms, drought and earthquakes. A decree on microinsurance was issued in 2023, but microinsurance penetration is limited. Disaster recovery is funded largely by budget allocations, since risk transfer instruments are not in wide use.

Recommendations include supporting the creation of effective, scalable and sustainable agriculture insurance; building effective distribution channels for inclusive insurance; and supporting the development of disaster risk insurance schemes for public assets.