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Vietnam’s agricultural insurance market ripe for development
The local governments in many provinces across Vietnam, as well as farmers in those areas have not paid due attention to agricultural insurance services, an US expert said at a seminar on Vietnam’s agricultural insurance market, which took place on Jan. 9.
According to Jason Hartell from the US-based Global AgRisk, agricultural production in Vietnam is generally relatively small-scale and relies mainly on manual labour. It is, therefore, at risk from the effects of the weather, epidemics, an unstable investment environment and fluctuations in the market, while protective policies are still insufficient to cover any losses from these factors.
These circumstances lead to the fact that farmers are hesitant to invest in advanced but high-risk production models and are loyal to traditional low-yield methods of cultivation.
A member from the National Consultative Council of Monetary Policy, Dao Van Hung, said that the agricultural insurance market possesses huge potential for development.
According to him, a recent survey conducted in the Mekong Delta region revealed that many farmers were willing to purchase insurance cover to protect their production levels.
However, he admitted that there are still numerous challenges to the development of the agricultural insurance market, due to small-scale production levels, a paucity of data and information allowing an accurate assessment of risk and a lack of legal regulations and knowledge regarding the issue of cover.
vna
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