Flood disasters are increasing worldwide in both frequency and magnitude. Every year in Vietnam, flood causes great damage to people and property, as well as contributes to environmental degradation. Flood management measures are very important to flood risk reduction and policies in Vietnam are currently updated. This paper reviewed flood management in Vietnam and suggested Risk–based planning and optimization management measures as a new approach to reach sustainable flood risk reduction. This paper discussed the basic approach where the measures of flood protection are chosen based on minimizing total social risk (expected monetary expenses) including residual risk and costs of flood control measures. This approach was proposed and demonstrated in a case study in the Phan-Calo river basin in Vietnam. In the case of the study, measures focused on structure and non-structure solutions for flood risk reduction, it shows that the 10-year return period of flood will minimize residual risk and investment cost for construction solutions including pumping, building regulatory lakes, and dredging of river. The result was expressed and discussed which provides the processing of actions that helped decision makers to choose flood risk reduction investment options.