This study examines the effect of financial literacy on the participation decision in the potential agricultural insurance among the brackishshrimp farmers in coastal areas of Mekong River Delta of Vietnam. With 315 randomly selected farmers in Ca Mau, Bac Lieu and SocTrang province, this study investigates determinants of the farmers’ participation decision in the agricultural insurance program. The results indicate that the brackish shrimp farmers have a low level of financial literacy. Also, the study finds that financial literacy is positively associated with brackish shrimp farmers’decision to participate in the potential agricultural insurance program. Other determinants of willingness to participate in brackish shrimp insurance include the household heads’experience years that hassignificantly positive affect, andthe age of household head that has a negative effect. In addition, the results show that the production costs insuredand the trust in insurance companies have highly positive effects on the shrimp farmers’ potential agricultural insurance demand.