Natural catastrophes may cost nearly 6.7 billion USD
According to the World Bank, Vietnam may be faced with damage worth more than 6.7 billion USD in the next 50 years. Natural events such as typhoons and earthquakes are likely to be behind this damage.
Vietnam is exposed to numerous natural catastrophes with nearly 60% of the territory and 71% of the population being vulnerable to cyclones or to floods. The economic cost in case of occurrence of such events is estimated at nearly 0.8% of gross domestic product.
The World Bank and the Swiss government have provided assistance to the country by setting up a risk management system for natural catastrophes. This approach has been designed to improve the financing system of natural catastrophes through insurers’ contribution.
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