Disaster risk transfer solutions for urban settings in Vietnam

This feasibility study was conducted for the InsuResilience Solutions Fund (ISF) to assess the setting up of disaster risk transfer solutions for climate-vulnerable cities in Viet Nam. The study focuses on disaster risk transfer solutions for municipalities/cities/provincial cities which are the most vulnerable to climate flood and typhoon risks and have a large population as well as socio-economic and natural disaster data sets spanning over 40 years. The rapid urbanisation of Viet Nam over the past decades, combined with rising climate change exposure, highlights the need for cities to develop new tools to manage the financial consequences of disaster events.

The feasibility study finds that the key climate hazards to Viet Nam’s largest and most vulnerable cities are flood (in particular riverine floods) and typhoons due to most larger cities being located on the coastline or in low-lying deltas. The study has identified that despite significant investment in better planning, the Government of Viet Nam still faces a funding gap after disasters. Viet Nam does have a strong legal basis for disaster risk management including the 2014 Law on Natural Disaster Prevention and Control. Financial sources are identified as state budget funds, natural disaster prevention and control funds, and voluntary contributions. Gaps in financing and insurance for reconstruction remain.