Vulnerability to natural disaster and welfare effect: a case study of flood risk in Vietnam’s North central region

Abstract

This article investigates the impact of flood risk on vulnerability and welfare at the household level in Vietnam. The analytical sample is taken from a household survey conducted in a north central Vietnam community through a three-stage stratified random sampling method. The propensity score matching approach is employed to compare various welfare indicators between flooded and non-flooded households. This study finds that flooding results in significant income losses and imposes higher costs of living, especially housing costs. The two types of households are vulnerable, implying that other natural disasters or socio-economic disadvantages may have adverse effects on households’ livelihoods. The insignificant effect of floods on vulnerability indicates that the flooded households can cope with floods to some extent. However, contrary to family support, formal coping strategies are insufficient or ineffective at reducing household vulnerability to floods.