The study “Overview of Agricultural Insurance and Realted Policies in Vietnam”, was carried out by the authors: Tran Cong Thang, Dang Kim Khoi, Thai Van Tinh and Do Huy Thiep (Institute of Policy and Strategy for Agricultural and Rural Development (IPSARD).

In general, agricultural insurance (AI) is considered as a form of risk management used to hedge against a contingent loss and widely implemented in the world. AI has appeared since the 18th century and widely develop since the beginning of 20th century and most success cases of AI is in developed countries, such as Germany, USA, Canada, Spain, Japan… Countries apply different management type of AI, but one common point in all countries is government subsidy at different level. In ASEAN, AI has been developed in Malaysia, Philippines, Thailand and Vietnam since the late 70s and early 80s. Most of the AI scheme in these countries are sponsored by the government and some of them have achieved certain success, yet not any country has established a fully market based agricultural insurance system. In Vietnam, AI was first launched in 1982 by Bao Viet Corporation, and most recently, the National Agricultural Insurance Pilot Program (NAIPP).

In the scope of this report, we will review the development of AI as well as its related policies in Vietnam. In general, according to the development of AI, we can divide its development into 2 periods. In which, Period 1 is from 1982 to 2010, which witnessed the rising of various different AI models. In the 2nd period from 2011 up to now, the largest AI development program was implemented in more than 20 provinces in Vietnam, which is called NAIPP. The structure of this working paper will follow this development process. In each period, we will present some outstanding models and discuss the strength as well as weakness of AI.