{"id":605,"date":"2026-03-20T15:10:30","date_gmt":"2026-03-20T06:10:30","guid":{"rendered":"https:\/\/vietnam-agri.com\/vietnam-agri\/vietnam-agriculture-insurance\/"},"modified":"2026-06-10T00:36:10","modified_gmt":"2026-06-09T15:36:10","slug":"vietnam-agriculture-insurance","status":"publish","type":"post","link":"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/vietnam-agriculture-insurance\/","title":{"rendered":"Explaining how Vietnam's agricultural insurance works and how to use it"},"content":{"rendered":"

For those considering importing produce from Vietnam or investing in farming there, the question 'what happens to farmers when climate risks or pests and diseases strike?' is a pressing one.<\/p>\n

Typhoons, floods, droughts, pests and diseases: Vietnam's farmers battle these risks every year. In recent years, however, government-led insurance schemes and private and micro-insurance have developed rapidly, widening the options for risk management.<\/p>\n

This article explains how the three pillars of Vietnam's agricultural insurance (government-subsidized insurance, private insurance, and micro-insurance) work, their current state, and the points that those in agriculture and food importers should grasp.<\/p>\n

The reality of the risks Vietnamese agriculture faces<\/h2>\n

Vietnam is one of Southeast Asia's leading agricultural countries, exporting diverse produce such as rice, coffee, Cashew nuts<\/a> and shrimp, and other diverse produce. At the same time, it is a country that is very vulnerable geographically and climatically.<\/p>\n

According to data from Vietnam's Ministry of Agriculture and Rural Development (MARD), an average of about 20 tropical cyclones approach or make landfall on Vietnam's coast each year. In the south, chronic drought and saltwater intrusion are problems, while in the north, cold-weather damage and floods occur frequently.<\/p>\n

It is not unusual for agricultural damage to reach several hundred billion dong (on the order of billions of yen) in a year. Because many farmers run small operations, a single major loss strikes their livelihoods directly.<\/p>\n

Against this backdrop, agricultural insurance has become a central theme of Vietnam's rural policy.<\/p>\n

Government-subsidized agricultural insurance: the framework of Decree 58<\/h2>\n

The Vietnamese government launched an agricultural-insurance pilot program in 2011 and has developed the system since. Important as the current governing law is Decree No. 58 (Decree 58\/2018\/ND-CP)<\/strong> of organic jasmine rice.<\/p>\n

Under this decree, farmers who meet certain conditions receive a portion of their insurance premiums subsidized by the state. The subsidy rate varies by the farmer's poverty category and region.<\/p>\n\n\n\n\n\n\n\n\n
Farmer category<\/th>\nPremium subsidy rate<\/th>\n<\/tr>\n<\/thead>\n
Poor farmers<\/td>\n90%<\/td>\n<\/tr>\n
Near-poor farmers<\/td>\n80%<\/td>\n<\/tr>\n
General farmers (policy-target areas)<\/td>\n60%<\/td>\n<\/tr>\n
General farmers (other areas)<\/td>\n20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The covered produce has been expanded in stages, with rice, livestock, and farmed aquatic products the main targets. The implementing bodies include insurers such as Bao Viet and insurers partnered with AgriBank.<\/p>\n

The coverage is mainly as follows.<\/p>\n

Coverage for natural disasters<\/h3>\n

Losses to crops from natural disasters certified by the meteorological agency, such as typhoons, floods, droughts, and frost damage, are covered. Certification of damage requires an investigation by local authorities, and payment is made when the loss rate exceeds a certain level (usually 30% or more).<\/p>\n

Coverage for pests and diseases<\/h3>\n

Losses from diseases and pests that the government has designated as 'dangerous pests and diseases' are also covered. These include rice false smut and rice stripe disease for rice, and white spot syndrome virus (WSSV) for farmed shrimp.<\/p>\n

That said, because of the complexity of the application procedures and the slowness of insurers' assessments, the actual uptake rate remains low.<\/p>\n

Private agricultural insurance: risk cover on a commercial basis<\/h2>\n

Commercial agricultural insurance from private insurers meets needs that government-subsidized insurance alone cannot cover.<\/p>\n

Bao Viet, PVI Insurance, PTI (Post and Telecommunication Insurance), and others offer agricultural-insurance products. These are designed for crops outside the scope of government subsidies and for medium- and large-scale farmers and agribusinesses that want broader coverage.<\/p>\n

The hallmark of private insurance is flexibility.<\/p>\n