Strengthening City Disaster Risk Financing in Viet Nam
Viet Nam has made significant progress in developing proactive disaster risk management policies and mainstreaming those policies into national, social, and economic development priorities.
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Disaster risk financing instruments provide funding for disaster relief, early recovery, and reconstruction. Adequate financing arrangements are essential in ensuring timely recovery in the wake of disasters and in minimizing their impact on socioeconomic development. This paper presents a summary of a technical assistance project on the development of disaster risk financing solutions for the cities of Can Tho and Hue and, by extension, for other cities in Viet Nam. Many of Viet Nam’s cities face significant risk from natural hazards such as typhoons, flooding, landslide, and drought. The project included the development of disaster risk models, financing gap analysis, and review of legislative and regulatory considerations. Disaster risk financing solutions were identified, focusing on insurance, credit, and capital market instruments.
Contents
- Executive Summary
- Introduction
- Methodology for Developing Disaster Risk Financing Options
- Why Other Vietnamese Cities Might Consider DRF Instruments
- Potential Disaster Risk Financing Solutions
- How to Choose an Appropriate DRF Option
- What Does it Cost and What is the Expected Return?
- How Does it Get Implemented?
- Final Considerations and Conclusions
- Appendix
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