Hanoi, November 14, 2024 – Today, the Institute of Strategy and Financial Policy, Ministry of Finance, in collaboration with the United Nations Development Programme (UNDP), organized a workshop on “Disaster Risk Finance and Insurance: International Experience and Recommendations for Viet Nam.” The workshop aimed to share international experiences in developing financial and insurance strategies, discuss difficulties, and contribute ideas to build disaster risk insurance and finance to help the country increase its resilience to natural disasters.

The workshop was attended by leaders and experts from state management agencies such as the Department of Insurance Management and Supervision, the State Budget Department, the Ministry of Finance, the State Bank, the State Securities Commission, the Department of Dyke Management and Disaster Prevention, the Ministry of Agriculture and Rural Development, representatives of international organizations (ADB, World Bank), research institutes and universities (National Economics University, Banking Academy, Finance Academy), and domestic and international Reinsurance and Insurance companies operating in Viet Nam (such as the National Reinsurance Corporation, Bao Viet Insurance Corporation, MSIG Insurance Company).

In her opening remarks, Dr. Le Thi Thuy Van, Deputy Director of the Institute of Strategy and Financial Policy, said: “A comprehensive approach to financial resources and disaster risk insurance is necessary. Learning from international experience will help us orient and apply more appropriate and effective solutions.” She affirmed that enhancing the ability to respond and recover from natural disasters is an urgent requirement and the foundation for sustainable development in the context of increasingly severe climate change.

Mr. Patrick Haverman, Deputy Resident Representative of UNDP in Viet Nam, emphasized the role of effective financing and insurance strategies in mitigating the impact of natural disasters. “Effective financing and insurance strategies are important tools to help mitigate the impact of natural disasters and support rapid recovery and reconstruction,” he said.

At the workshop, the participants also shared experiences from countries such as Japan, the Philippines, Colombia, and the Caribbean region, with particular emphasis on robust legal frameworks for disaster risk financing and insurance and existing risk transfer instruments. The earthquake insurance system and legal regulations in Japan have helped build a sustainable response system. The Philippines has implemented parametric insurance for public assets, while Colombia has partnered with the World Bank to build a disaster finance management system to reduce the budget burden.

Dr. Nguyen Thi Hai Duong from the National Economics University said that Viet Nam could apply index insurance and risk-based insurance models to provide faster and more effective financial support, emphasizing: “Public-private partnership and support from international organizations will be key factors to promote natural disaster insurance in Viet Nam.”

Viet Nam is one of the countries heavily affected by natural disasters, with annual GDP losses of up to 1-1.5%. The World Bank predicts that Viet Nam could face economic losses of up to 67 billion USD over the next 50 years without effective prevention and insurance strategies.

The workshop made important recommendations such as perfecting a strict legal framework, improving forecasting capacity, and enhancing financial initiatives, including disaster risk insurance, risk transfer tools, pre- and post-disaster response tools, types of disaster risk insurance products, the current situation in Viet Nam, and the challenges. Delegates discussed Vietnam’s pilot experience and the bottlenecks that need to be removed to implement disaster risk insurance, especially disaster risk insurance for public assets, effectively. This event is a step forward in building effective financial and insurance policies for Viet Nam, aiming to enhance resilience to future disasters and climate change.

For media inquiries, please contact: 
Phan Huong Giang 
UNDP Media and Communication Analyst, Climate Change and Environment 
Email: phan.huong.giang@undp.org
Mob: 0948466688