Want to be in the loop?
subscribe to
our notification
Business News
INSURANCE INDUSTRY HITS GROWTH OF 24% IN H1
Việt Nam’s insurance industry achieved high year-on-year growth of 24.35 per cent in the first half of 2018, helping total revenue to reach more than VNĐ58.65 trillion (US$2.55 billion).
Deputy general director of the Ministry of Finance’s Insurance Supervisory Authority (ISA), Doãn Thanh Tuấn, said besides maintaining a high growth rate, the financial status of insurance firms also improved in the first six months. Their total assets rose an estimated 27.33 per cent on-year to VNĐ336.997 trillion.
During the period, insurance companies re-invested VNĐ277.38 trillion into the economy, marking an on-year rise of 27.47 per cent, Tuấn said, adding that insurers also paid out VNĐ16.32 trillion to customers, up 22.43 per cent compared with the same period last year.
He said that ISA would step up its efforts to restructure the insurance market in the remaining months of the year, aiming at transparency, safety and efficiency.
This year, the insurance sector has targeted revenue of VNĐ129.24 trillion, up 22.38 per cent against last year. If it hits the target, it would be the fifth consecutive year the insurance industry has posted annual growth of more than 20 per cent. The industry’s total revenue surged by 21.2 per cent to VNĐ105.61 trillion in 2017.
Phùng Ngọc Khánh, the ISA’s general director, said that Việt Nam’s insurance market had high potential as the number of customers remained low while incomes and awareness were rising.
The insurance industry is also expected to benefit from the country’s projected GDP growth of more than 6 per cent annually over the next three years.
It also has great potential as the country has one of the world’s lowest life insurance penetration levels at less than 1 per cent of the GDP. The average insurance premiums in Việt Nam stand at $30, much lower than the global average of $595 and Southeast Asia’s $74.
Many insurers, such as Generali and Prudential, have recently decided to increase their charter capital and expand their business operations as they forecast the market will grow.
The Việt Nam Insurance Association reported there were 18 life and 30 non-life insurers in the Vietnamese market. Among the 18 life insurers, only Bảo Việt Life Insurance is Vietnamese owned, while the remainder were joint ventures or wholly foreign-owned companies.
According to experts, the participation of foreign investors in Việt Nam’s insurance market would develop the market while enriching domestic insurers with experience and governance.
In addition, modern distribution models in the local insurance industry had been gradually developing thanks to the participation of foreign investors.
“The participation of foreign investors has helped domestic insurers increase their competitive edge through the enhancement of training and diversification of products,” Bảo Việt Securities Company noted in a report.
Source: VNS
Related News
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.