This document summarizes an inter-ministerial technical workshop in Vietnam on tools for cost-related climate change decision making. It discusses the need for information on assets at risk, historical climate losses, climate impact projections, and adaptation costs to effectively prioritize climate-resilient investments. While Vietnam has collected some data on past damages, gaps remain in integrating climate projections, estimating indirect financial losses, and assessing slow-onset climate impacts. The document proposes strengthening systems for disaster and loss reporting, conducting climate risk assessments, improving inter-ministerial cooperation, and reviewing risk transfer mechanisms to support climate-resilient planning.

1. EMERGING COST-RELATED
DECISION MAKING TOOLS FOR
CLIMATE CHANGE RISK IN VIET
NAM
INTER-MINISTERIAL TECHNICAL WORKSHOP ON VALUATION
OF CLIMATE CHANGE IMPACTS IN VIET NAM
HANOI 6-7 JUNE 2017

2. OVERVIEW
• WHY PRIORITISE CLIMATE CHANGE RESILIENT INVESTMENT?
• HOW IS VIET NAM CURRENTLY INVESTING?
• WHAT INFORMATION IS NEEDED TO EFFECTIVELY MANAGEMENT THESE RISKS?
• WHAT TOOLS DOES VIET NAM HAVE TO FAST-TRACK ACTION AS PART OF ITS
CLIMATE CHANGE POLICY?
• ARE THERE OPPORTUNITIES TO STRENGTHEN THE SYSTEM?

3. Source http://unfccc.int/adaptation/workstreams/loss_and_damage/items/6056.php

4. Short Term Medium term Long term Very long term
Direct
Disaster/
Climate
Change
Related
Impact
Damage to roof
Loss of rice crop
Destruction of road
or bridge
Loss of fruit tree
Coastal erosion
Increased salt-
water intrusion to
agricultural land
Long term sea level
rise/ Ocean
acidification
Loss of agricultural
land to salt water
intrusion
Current
Primary
Action
Humanitarian
assistance
Early recovery
support
Allocation of
additional annual
budget for recovery
Consider
adaptation/
changes to reduce
future risk
Increased use of
engineering
measures (sea
walls etc.)
Changes in land-
use
(rice/ shrimp or
living with floods)
Relocation of people
and assets
Changes in local
industry/ economies
Potential
Financial risk
sharing tools
Individual
insurance schemes
Individual/
sovereign risk
sharing
Risk-transfer to
spread cost of
major event
Insurance and risk-
sharing become less
viable
Small scale Insurance/ re- Government Area for future

5. WHAT INFORMATION IS NEEDED ?
• Information on assets at risk and historical losses (what you stand
to lose)
• Information on how climate change will impact key sectors (how
much it will get worse)
• Information on expenditure (what you are currently spending)
• Information on costs of adaptation options (what’s the cheapest
way to fix it)

6. DATA ON ASSETS AT RISK AND HISTORICAL
LOSSES:
• 2015 Government Decision 43
records post-disaster damage in
key sectors
• It is a strong base but field data
collection and processing systems
need strengthening
• Systems focus mainly on direct not
indirect costs
• Data not always accessible
3GD THIỆT HẠI VỀ GIÁO DỤC
3.1GD01 Số điểm/trường bị ảnh hưởng điểm
3.2GD02
Phòng học, phòng chức năng công vụ,
nhà ở tập thể, nhà bán trú cho học
sinh/sinh viên bị thiệt hại
cái
3.2.
1GD021 Sập, đổ, hư hỏng rất nặng (>70%)
cái
3.2.
2GD022 Xiêu vẹo, hư hỏng nặng (từ 30-70%)
cái
3.2.
3GD023 Xiêu vẹo, hư hỏng một phần (< 30%)
cái
3.4GD04 Số học sinh/sinh viên phải nghỉ học
học
sinh
3.5GD05
Máy vi tính và các thiết bị giáo dục ở
điểm/trường bị hư hỏng
triệu đ
3.6GD06 Tài sản khác bị hư hại (*) triệu đ
4YT THIỆT HẠI VỀ Y TẾ
4.1YT01
Số cơ sở y tế (bệnh viện, trung tâm y tế, trạm
y tế) bị thiệt hại
cái
4.1.
1YT011 Sập, đổ, hư hỏng rất nặng (>70%)
cái
4.1.
Does not
currently
include
means of
estimating
financial
losses

7. INFORMATION ON HOW CLIMATE CHANGE
WILL IMPACT KEY SECTORS
• Viet Nam has good climate
projection data but this is not
open-source available to
modellers to create risk
models
• Some hazards/ risks like ocean
acidification or saltwater
intrusion are not yet
adequately mapped
• More work to integrate this
data in to planning is needed

8. INFORMATION ON CURRENT INVESTMENT:
• Tools like Climate public expenditure
reviews are helpful
• Need to be coupled with improved
climate recovery planning
• Current systems still track just
projects, not investments actions like
M&E
• Systems to better estimate adaptation
investment costs at local level is

9. IMPROVED TOOLS FOR DECISION MAKING
• Help provinces weigh-up where and how to invest
• Move from looking at cost benefit of a project to looking at
overall investment options and project selection process
• Adjustments to incentive systems to reward low-cost wide
cost action

10. GEF Funding Climate Resilient Infrastructure Project Inter-active database:
Climate Change Vulnerability of irrigation, embankment and road construction (Hoa Binh City, 1:50,000)

11. ECONOMICS OF CLIMATE CHANGE
ADAPTATION
AGRICULTURE SECTOR ANALYSIS FOR VIET
NAM (ECCA)
“Farmers who use
irrigation techniques
earn US$62 per acre
more than non-irrigated
farms. The impact of
climate change on rain-
fed and irrigated farms
is also different. These
impacts influence
farmers’ adaptation
choices.”

12. OPPORTUNITIES TO STRENGTHEN SYSTEMS
• Identify gaps in national capacity to conduct risk assessments and
conduct risk auditing for key sectors where limits to current adaptation
capacity can be seen
• Strengthen implementation of current disaster damage and loss
reporting and improve accounting of financial losses
• Strengthen research on slow onset events, sea level rise and ocean
acidification impacts and costing potential assets at risk
• Facilitate technical level inter-ministerial dialogue and capacity building
on approaches to address extreme weather events and future damage
and loss and on improving information flow (particularly MPI, MARD,
MoNRE, MoC and MoF)
• Undertake an initial review of global, regional and existing in-country
risk transfer mechanisms to identify scope and requirements for

13. THANK YOU
jenty.kirsch-wood@undp.org