This paper develops a theoretical perspective on institutional adaptation t
o social vulnerability to environmental risks. Institutions encompass both
socialized ways of interacting and underlying worldviews, as well as struct
ures and organizations that influence resource allocation The adaptation of
institutions that mediate vulnerability to environmental change can be obs
erved by examining actual resource allocations and the processes of decisio
nmaking and nondecisionmaking, as well as by examining changing perceptions
of vulnerability. Institutional adaptation is evaluated in Nam Dinh Provin
ce in northern Vietnam, a country presently undergoing rapid economic and p
olitical transition. The case study highlights local-level institutional ad
aptation to environmental risks associated with flooding and typhoon impact
s in the coastal environment. It is carried out through fieldwork involving
qualitative household survey is and interviewing to elicit present and rec
ent coping and adaptation strategies in the context of rapid changes in pro
perty rights and economic circumstances. Although Vietnam's transition from
state central planning is often heralded as a macroeconomic success story,
this study argues that the transition has had negative impacts on social V
ulnerability. A decrease in collective action for risk management by state
institutions is exacerbated by inertia in some aspects of the decentralized
state planning system, while the parallel spontaneous reemergence of civil
institutions forms a counterbalancing institutional adaptation.