Financing options for shock-responsive social protection in Vietnam

Photo: UNICEF

Developed under the EU–UNICEF Public Finance Facility in South and Southeast Asia, the study provides an updated analysis of Vietnam's social protection and disaster risk financing landscape since 2020.

Vietnam's exposure to shocks such as global pandemics, typhoons, floods, droughts and other climate-related events makes timely support to affected households a priority while helping to cushion the economy. The study points to the need to strengthen adaptive legal and institutional arrangements, improve delivery systems, and diversify financing mechanisms that can be activated rapidly when shocks occur.

“Every disaster puts children at risk, but its impact does not have to become a crisis for every family. As climate-related and other shocks become more frequent and severe, investing in resilient social protection systems is no longer optional but essential,"said Michaela Bauer, acting representative of UNICEF Vietnam. "By putting the right systems and financing in place before disasters occur, Vietnam can ensure that children and families receive timely support, recover more quickly, and build greater resilience for the future. Preparedness today is one of the most effective ways to protect every child's future tomorrow.”

The research combines a review of policy documents and existing literature with consultations at national and local levels, including field visits in disaster-prone provinces. It contributes updated evidence on the links between public finance, disaster response and social protection, with a focus on recommendations for using cash assistance more effectively as part of emergency response efforts.

“This study provides timely evidence on how Vietnam can strengthen financing preparedness for shock-responsive social protection. By looking at budget planning, insurance markets and pre-arranged financing instruments, it contributes to a better understanding of how public finance systems can support timely and effective responses when climate and economic shocks occur,” said Julien Guerrier, Ambassador of the EU to Vietnam.

Participants discussed international lessons on financing emergency cash assistance, practices in the state budget allocation mechanism, local experiences in coordinating resources during extreme natural disasters, and ways to strengthen capacity for public finance analysis and anticipatory social protection policies. Beyond the technical discussion, the event included a student solution debate organised by APD. Student teams presented proposed financial solutions to strengthen the readiness and responsiveness of the social protection system,

“As an academic institution under the Ministry of Finance, APD is ready to partner with UNICEF and the EU to promote discussion on the findings of this important study. We believe that evidence, research and open dialogue are essential to deepening understanding of public finance options for shock-responsive social protection, in accordance with Vietnamese law. This workshop also provides a valuable opportunity for students and young researchers to engage with real-world matters and financing options in Vietnam,” said Nguyen The Hung, deputy director of APD.

By bringing together government representatives, researchers, development partners and students, the workshop aimed to broaden understanding of financing options for shock-responsive social protection and encourage continued dialogue on how Vietnam can strengthen fiscal readiness for future shocks.

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