skip to Main Content

Innovative insurance solutions to help manage climate risk in Vietnam

Coffee is one of the most important agricultural crops in Vietnam. The estimated value of coffee exports is approximately USD 2.8 billion per annum. However, high temperatures or unseasonably low or high rainfall due to climate change may reduce coffee production and quality. Reduced production and loss of quality reduce the price growers can get, placing financial stress on farmers, who are largely dependent on the income they generate from coffee. The coffee industry in Vietnam is dominated by smallholder farmers with 85% of all farms under 1 ha and only 1% larger than 5 ha.

Insurance could be a valuable tool to help farmers (and coffee export companies) manage the negative financial consequences of adverse climatic conditions on coffee production in Vietnam. When unfavourable climatic conditions hit (e.g. too much rainfall during harvest, which can cause mouldy coffee beans) then insurance payouts could provide important financial compensation to farmers.

The IKI is supporting a regional project to develop insurance options to help manage the negative financial consequences of adverse climatic conditions on coffee producers in Vietnam, titled “DeRISK SE Asia – Applying seasonal climate forecasting and innovative insurance solutions to climate risk management in the agriculture sector in SE Asia”. The team draws together expertise from researchers from the University of Southern Queensland and insurance industry specialists from Willis Towers and Watson as part of a major consortium that includes the World Meteorological Organisation and the International Centre for Tropical Agriculture (CIAT).

The team recently developed prototype index insurance options to help manage high temperatures and unseasonably low or high rainfall impacts on coffee. Over the next year, the team will be testing the effectiveness of these options with farmers and agribusiness in Vietnam. The prototypes of the index insurance options are currently being road-tested with the coffee industry, including large trading companies (such as ECOM Agroindustrial Corporation Ltd), to ensure the products are affordable and meet the needs of smallholder farmers.

For additional information please visit the project’s website at:

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Registered offices
Bonn and Eschborn, Germany

Friedrich-Ebert-Allee 36 + 40
53113 Bonn, Germany
T +49 228 44 60-0
F +49 228 44 60-17 66

Dag-Hammarskjöld-Weg 1 – 5
65760 Eschborn, Germany
T +49 61 96 79-0
F +49 61 96 79-11 15


Registered at

Local court (Amtsgericht) Bonn, Germany: HRB 18384
Local court (Amtsgericht) Frankfurt am Main, Germany: HRB 12394

VAT no.

DE 113891176

Chairperson of the Supervisory Board

Jochen Flasbarth, State Secretary in the Federal Ministry for Economic Cooperation and Development

Management Board

Thorsten Schäfer-Gümbel (Chair)
Ingrid-Gabriela Hoven (Vice-Chair)
Anna Sophie Herken

Unsubscribe | Here you can unsubscribe from this newsletter.

In charge of this newsletter:
Daniel Herrmann,
IKI Interface Vietnam
GIZ Office Vietnam
Project “Support to Vietnam for the Implementation of the Paris Agreement II” (VN-SIPA II)

Editor: Tran Xuan Quynh

Photo Credits:
tuoitre, pixabay

The IKI Vietnam Newsletter is administered by the IKI interface in Vietnam hosted by GIZ. It informs regularly about news of climate change and biodiversity projects in Vietnam financed by the International Climate Initiative (IKI). The International Climate Initiative (IKI) is an important part of the German government’s international climate finance commitment. Since 2022 the IKI is implemented by the Federal Ministry for Economic Affairs and Climate Action (BMWK) in close cooperation with the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) and the Federal Foreign Office (AA).

IKI Independent Complaint Mechanism (IKI ICM)

Any person who is (potentially) negatively affected by an IKI project, can file a complaint via the IKI Independent Complaint Mechanism (ICM). 

It works to enable people who suffer (potential) negative social and/or environmental consequences from IKI project. ​

  • Any person or a group of persons, or a community that has been or may be affected negatively by an IKI project may file a complaint.​
  • Persons wishing to do so can report integrity and/or corruption issues, such as misuse of funds, fraud etc.​
  • If persons experience reprisals in relation to an IKI project or a complaint, they can also use the mechanism. The affected person(s) can authorise a representative to file and pursue the complaint on their behalf.​

To find more information or to file a complaint go to:​

Back To Top