In a National Assembly session discussing investment in national target programs for new rural development, sustainable poverty reduction, and socio-economic development in ethnic minority and mountainous areas until 2035, many lawmakers reflected on the painful aftermath of recent historic floods.

From escaping poverty to being pushed back by floods

Expressing deep concern about climate change adaptation, delegate Nguyen Thi Mai Hoa from Dong Thap emphasized that all three fields - new rural development, sustainable poverty alleviation, and socio-economic development for ethnic minority and mountainous regions - must be linked to climate change resilience.

“The past few months have shown devastating impacts, where families that had just escaped poverty were pushed back into it after just one flood. The cost of recovery is often far greater than proactive investment,” she said.

Hoa suggested that climate change adaptation should be recognized as a major, standalone component within the program’s overarching goals.

Echoing this concern, delegate Duong Khac Mai from Lam Dong noted that recent storms and floods have severely damaged transportation infrastructure, public facilities, and personal property. In many regions, families that had risen out of poverty were dragged back to square one.

“There’s even a bitter joke that some households have completely escaped poverty because they now have nothing left to be poor with,” Mai said, urging the government to re-evaluate whether the current budget allocation for the program meets real-world needs.

Program funding estimates

For the 2026–2030 period, the program is expected to mobilize at least 1.23 quadrillion VND (approximately USD 50 billion). Of this, the central budget will directly contribute about VND 100 trillion (USD 4 billion), with future adjustments based on demand.

Local government budgets will provide about VND 400 trillion (USD 16 billion); integrated funding from other programs around VND 360 trillion (USD 14.4 billion); policy credit capital more than VND 22.6 trillion (USD 900 million); the rest will come from businesses and community contributions.

From 2031–2035, the government will propose resources based on the outcomes of the first phase.

Mai urged the government to forecast and allocate a large contingency fund, especially as climate change grows more severe - with more frequent storms, landslides, and droughts.

“No matter how difficult the conditions, the program must reach its final goal,” he emphasized.

Natural disasters crush dreams for the future

Delegate Chau Quynh Dao from An Giang shared that the rate of households falling back into poverty remains high, especially in ethnic minority and mountainous regions. One of the key causes is natural disasters.

“Vietnam is a small country but constantly battles extreme weather. In 2025 alone, the country faced over 20 types of natural disasters - intense, widespread, and record-breaking,” she said.

She cited recent flooding in Dak Lak, Gia Lai, Khanh Hoa, and Lam Dong provinces that caused over VND 8.9 trillion (USD 355 million) in damages.

Despite rapid government and community response efforts, she noted, the destruction was profound: “Many families lost everything they had worked a lifetime to build - homes, infrastructure, and tragically, lives, including children’s.”

“Natural disasters don’t just destroy property - they also shatter the hopes and dreams of the most vulnerable communities,” she concluded.

Dao argued that sustainable poverty reduction must now mean adaptation, building resilience against nature’s harshest blows.

Insurance remains an underutilized tool

However, she pointed out that the current financial solutions focus heavily on credit access, overlooking an equally vital tool: insurance.

Life insurance coverage remains low, at just 11–11.7% of the population. In agriculture - the sector most directly affected by natural disasters - only 16,700 out of nine million farming households have signed up for agricultural insurance over the past three years.

“Without effective insurance coverage, the financial burden falls squarely on affected families and the state, which spends tens of trillions of dong annually for disaster relief. Banks accumulate bad debt, and communities are left relying on short-term charity instead of long-term solutions,” she explained.

Delegate Dao called on the Government and National Assembly to consider policies that would make insurance a core financial protection mechanism - helping people rebuild faster and break the cycle of poverty for good.

Thu Hang