Page 128 - STRATEGY FOR SUSTAINABLE AGRICULTUR AND RURAL DEVELOPMENT IN THE PERIOD 2021-2030 AND VISION TO 2050

72. What policies does Viet

Nam currently have to
support agricultural
insurance for farmers?

Insurance is a financial instrument used to However, in order to promote adoption and
manage risks that can lead to financial loss by product diversification, a number of issues
transferring specific threats from the insured need to be further promoted, including: (i)
party to the insurance company via paying focusing on raising awareness and building
premiums. Agricultural insurance transfers capacity for farmers and other stakeholders
some risks (natural disasters, epidemics, in the agricultural insurance system; (ii)
pests, etc.), property damage and income encourage diverse participation of insurance
in the farmer’s agricultural activities to the and reinsurance companies to design
company providing agricultural insurance insurance products to suit farmers’ needs,
services. By mitigating financial risk, providing diverse and appropriate distribution
agricultural insurance can encourage more channels, shorten the compensation
investment in agriculture, as it is likely to be assessment time; (iii) promote application
granted loans, production inputs, machinery, of technology in insurance product design,
etc., with higher value. management and supervision of the insurance
The role of agricultural insurance signing process, damage assessment and
is significant in ensuring agricultural compensation, and application of index
production’s stability, resilience and recovery. insurance; (iv) promote integration of
Therefore, the Strategy has set the goal of agricultural insurance along the value chain
“widely applying and diversifying agricultural to integrate the potential value of agricultural
insurance products that are convenient for insurance into market development, credit,
people and businesses to cope with risks of input supply, technology application, etc.; (v)
natural disasters and epidemics”. Viet Nam improve the linkages of agricultural insurance
has formed a relatively complete policy system policies with other current support policies,
for the operation of agricultural insurance and especially in restructuring agricultural sector
related support by issuing Decree 58/2018 and developing sustainable production
on Agricultural Insurance. Fee support is models, to avoid overlapping in policy
implemented following the Decision 13/2022 implementation; (vi) improve agricultural
on agricultural insurance support policy for database system, serving the development of
the period 2022 - 2025, whereby the State agricultural insurance.
supports premiums for crops (rice, rubber,
pepper, cashew, coffee), livestock (buffalo,
cattle, pig) and seafood (black tiger shrimp,
white leg shrimp, pangasius) in 30 provinces/
cities across the country.

128 Guidelines for the Strategy for sustainable agriculture and rural development
in the period 2021-2030, and vision to 2050