This article investigates whether and how Asian people's exposure to a variety of disasters undermine their decisions and welfare. Our case study from Vietnam, based on household panel data, shows that households adopt a variety of coping strategies against the damages caused by disasters especially through credit and labor markets. While the consumption risk sharing networks function effectively at the commune level, market and non‐market insurance mechanisms are not sufficient, especially at the regional, national, and international levels. Hence, it is imperative to strengthen market, government, and community based insurance mechanisms to diversify aggregate disaster risks at the individual, national, and regional levels in Asia.