Viet Nam

Overview

Viet Nam is among the most vulnerable countries to climate and disaster risks. The most prominent hazards are flooding (coastal, riverine and flash) and storms (typhoons). Droughts, saltwater intrusion and earthquakes also occur. Natural hazards are estimated to cause average annual losses of US$2.7 billion in public and private assets. As climate change increases the impact of these risks, public finances, infrastructure and vulnerable groups all need greater financial protection.
Alongside government and industry partners, UNDP’s Insurance and Risk Finance Facility is working to improve disaster risk management and protect vulnerable communities through insurance and risk finance solutions.

Main Natural Hazards

Flood, Cyclone, Tsunami,

Earthquake

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¹
Source:

https://drmkc.jrc.ec.europa.eu/inform-index/INFORM-Risk/Country-Risk-Profile}

Insurance penetration

2.96% (2022)

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¹
Source:

https://mof.gov.vn/webcenter/contentattachfile/idcplg?dID=288605&dDocName=MOFUCM286225&filename=Vietnam%20Insurance%20Market%202022.pdf}

Biodiversity ranking

#15 out of 239 countries and territories (2023)

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¹
Source:

https://worldrainforests.com/03highest_biodiversity.htm}

Small business % contribution to workforce

47% of total employment (2021)

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¹
Source:

https://www.oecd.org/cfe/smes/VN%20SMEE%20Policy%20highlights%20EN.pdf}

Multidimensional poverty

1.9% (2020/2021)

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¹
Source:

https://hdr.undp.org/system/files/documents/hdp-document/2023mpireporten.pdf}

Number of insurance providers

19 life insurance companies, 32 non-life insurance companies and 2 reinsurers

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¹
Source:

https://mof.gov.vn/webcenter/contentattachfile/idcplg?dID=288605&dDocName=MOFUCM286225&filename=Vietnam%20Insurance%20Market%202022.pdf}

% Workforce engaged in agriculture

34% (2022)

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¹
Source:

https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS}

Our work in numbers

180K

Projected beneficiaries

Reaching people through insurance and risk finance solutions.

1

Insurance solutions in development

Protecting people, jobs, agriculture and public assets.

5

Institutional and policy processes

Strengthening the enabling environment for insurance to scale.

330

Training programme participants

Building country capacity in insurance and risk finance.

Our projects

Improving policy and protecting vulnerable communities
The Tripartite Agreement (TPA) is a public-private partnership between UNDP, 20 of the world’s largest insurers under the framework of the Insurance Development Forum and the German Federal Ministry of Economic Cooperation and Development (BMZ). Through this partnership, UNDP is working with government and industry partners in Viet Nam to review and upgrade disaster risk financing strategies and regulatory frameworks.

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Increasing actuarial capacity to improve financial risk management
The UNDP Milliman Global Actuarial Initiative (GAIN) aims to help countries predict and prepare for risks by increasing actuarial capacity towards international standards, enabling better risk modelling and more accurate pricing of insurance and social protection mechanisms. In cooperation with government and industry stakeholders, the GAIN initiative is working to build actuarial capacity in Viet Nam through improved training opportunities and best practice sharing.

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Incentivizing the development of new insurance products and services across emerging economies
UNDP’s Insurance Innovation Challenges are powering a new generation of insurance products and services tailored to underserved households and businesses in developing economies.
- Active in 25 countries, with an investment of over US$2.1 million
- Addressing specific barriers and opportunities to scale financial protection, with a particular focus on women, SMEs and other vulnerable groups
- Creating market opportunities for insurance providers and safeguarding development.
Learn More