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quality of budgeting in response to disaster risks.
Developing a quantitative tools for assessing the
disaster risks and developing a set of databases
on disaster risks (particularly on public assets)
will help to evaluate occurence frequency of
natural disasters and loss suffering in order to
have a financial and insurance plan in responding
to natural disaster risk.
- Secondly,
developing a strategy on natural
disaster risk financing and improving the legal
framework on natural disaster risk management
in order to enhance implementation of policies
regulating disaster risk financing. An effective
strategy on natural disaster risk financing and
insurance (including solutions for public asset
management) will provide better support for the
timely recovery and restruction after occurence
of natual disasters and make an important
contribution to the financial system stability in
the region.
- Thirdly,
diversifying the financial resources
in disaster risk management, including the state
budget, insurance, special financial funds and
other resources. In addition, it is important to set
priorities of the financial resources to be used for
each type of disaster risk.
- Fourthly,
developing the disaster risk insurance
market in order to create active financial sources
which helps to lessen burden on government
budget and transfer risks into markets. Along with
enhancing infrastructure of and supervising over the
insurance market, it requires a tight collaboration
between the state sector and private sector.
-
Fifthly,
strengthening cooperation on
information and experiences sharing among
APEC member economies and international
organizations (WB, OECD, etc.) in developing
the legal framework and strategies on financial
management for natual disaster risks as
well as developing database for disaster risk
management.
References:
1. Bao Viet Holdings (2016), Sustainable Development Report;
2. APEC Finance and Central Bank Deputies Meeting (2017), Documents of
seminar on Disaster risk financing and insurance policies;
3. Ministry of Finance (2017), The APEC Vietnam 2017 Joint Finance
Ministerial Statement;
4. Source from websites: mof.gov.vn, apec.mof.gov.vn, sbv.gov.vn...
mentioned above, we recognized the support
of international organizations, especially WB
and OECD. Accordingly, WB supported the
development of database on public assets and
disaster risk insurance and specific outputs
included: (i) A research report on methodology
for the development of database on public assets
and disaster risk insurance; (ii) A research report
on sound practices on the policy development of
disaster risk financing management for public
assets; and supports the development of a portal
providing knowledge on disaster risk financing.
Furthermore, WB and OECD supported to do
a research on contingent liability management
relevant to natural disasters in public finance
framework. These activities’ outcomesare also
presented at the APEC Finance Ministers Meeting
in October, 2017.
Recommendations
Based on the achievements and progress of
implementing the Disaster Risk Financing and
Insurance Initiative in 2017 and reviewing the
experiences of the APEC member economies, a
number of solutions for disaster risk financing
and insurance at the meetings, conferences and
the seminars in process of the APEC Finance
Ministers’ Meeting, solutions on disaster risk
financing and insurance are recommended to be
focused on the followings:
- Firstly,
improving the capacity of natural
disaster forecasting as a basis for enhancing the
TABLE 2: TOP NATURAL DISASTERS IN VIETNAM FOR THE
PERIOD 1900 TO 2014 SORTED BY NUMBERS OF TOTAL
AFFECTED PEOPLE
Disaster
Date
No Total Affected
Storm
15/Sep/1980
9027174
Storm
23/Jul/1980
6624710
Flood
Jul-00
5000004
Storm
Oct-89
4635762
Flood
Aug-78
4079000
Flood
25/Oct/1999
3504412
Drought
Dec-97
3000000
Flood
7/Sep/1985
2800000
Storm
6/Sep/1986
2502502
Storm
28/Sep/2009
2477315
Source:
