The study uses commune fixed-effects regressions to estimate the effect of natural disasters on welfare and poverty of rural
households in Vietnam, and subsequently examines household and community characteristics that can strengthen resilience of households
to natural disasters. We find that all the three disaster types considered in this study including storms, floods, and droughts have
negative effects on household income and expenditure. Households in communes with higher mean expenditure and more equal expenditure
distribution are more resilient to natural disasters. Access to micro-credit, internal remittances, and social allowances can help
households strengthen the resilience to natural disasters.