Executive Summary
1. In the context of the National Strategy for Natural Disaster Prevention, Response and Mitigation approved by the Government of Vietnam, in 2009 the Ministry of Finance requested the World Bank to conduct a study on the financial protection of the state against natural disasters. This study aims to build institutional capacity on catastrophe risk financing and to identify financial options which are affordable and effective to the Government of Vietnam, including both sovereign risk financing and private insurance instruments. The study relies on the following four components: (i) financial risk assessment; (ii) review of Government budgetary process for financing natural disasters; (iii) dynamic fiscal funding gap analysis; and (iv) options for the financial protection of the state against natural disasters.