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Purpose

The purpose of this paper is to investigate the reasons for an unusual over‐development of flood‐prone areas outside the river dyke in Hanoi, while analysing the urban development and disaster management policies, and to suggest policy measures for regulating the rapid urbanization incorporating catastrophic flood risk planning.

Design/methodology/approach

Urban development and disaster management policies were analyzed and key stakeholders were interviewed to discover the effectiveness of the policies and governance tasks.

Findings

A discrepancy was identified between the goals of urban development and disaster management. The negative side of this discrepancy has been amplified by ineffective Construction Regulations and a lack of specificity with regard to Ordinances on Dyke. These factors, combined with poor coordination and lack of motivation within the city authorities in managing the Riverside Urban Areas (RUA), have contributed to the over‐development, which consists primarily of squatting and illegal construction.

Research limitations/implications

Along with a consideration of community perception of catastrophic flood risk in the RUA, which has been examined, the paper further analyses the effectiveness of related policies for catastrophic risk reduction in the RUA.

Practical implications

The paper identifies the following effective measures: build and share a knowledge base concerning catastrophic flood risk and sustainable ways of coping with the flood; be responsible and develop a commitment to manage flood‐prone areas; and develop better coordination between urban development and flood management.

Originality/value

The paper suggests new policy standards for managing the RUA development and reducing flood risks.

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