Insurance is an important sector to any country and it has proved itself a potential industry in Vietnam in the time to come. Report by the Government Portal.
Ensuring financial safety for production and trade is a regular requirement to insurance businesses.
The important intermediary financial market has been officially run since 1993 when the Government issued Decree 100 on establishing and organising insurance businesses in Vietnam. With the participation of groups and multinational corporations, the market has recently seen all forms of business ownership, which are regulated by a modern legal system and a specific strategy.
According to the Ministry of Finance, the market with an annual average growth of 20 percent is attractive to foreign insurance companies. The premium turnover reached nearly 41 trillion VND (1.9 billion USD) in 2012 and 21 trillion VND (938 million USD) in the first half of 2013.
The local insurance businesses have grown by learning international-standard management approaches and experience of international companies and accepting fair competition. Though facing the pressure of making profits and limitations on advertising costs, State-owned companies have competed successfully with international insurance businesses.
The insurance market has worked as an important medium-term investment channel for the national economy. In the first half of 2013, insurance businesses re-invested approximately 100 trillion VND (4.7 billion USD) in the economy, doubling the figure in 2008. Through diversified and effective investments in socio-economic development projects, they have provided a shield for the national economy.
The global economic downturn in the past is still challenging the health of the insurance market.
Therefore, to realise its set targets for the 2011-2015 period, it must strive to improve the legal system, enhance the safe performance, management and competitiveness of players, as well as promote international cooperation and integration.-VNA
Ensuring financial safety for production and trade is a regular requirement to insurance businesses.
The important intermediary financial market has been officially run since 1993 when the Government issued Decree 100 on establishing and organising insurance businesses in Vietnam. With the participation of groups and multinational corporations, the market has recently seen all forms of business ownership, which are regulated by a modern legal system and a specific strategy.
According to the Ministry of Finance, the market with an annual average growth of 20 percent is attractive to foreign insurance companies. The premium turnover reached nearly 41 trillion VND (1.9 billion USD) in 2012 and 21 trillion VND (938 million USD) in the first half of 2013.
The local insurance businesses have grown by learning international-standard management approaches and experience of international companies and accepting fair competition. Though facing the pressure of making profits and limitations on advertising costs, State-owned companies have competed successfully with international insurance businesses.
The insurance market has worked as an important medium-term investment channel for the national economy. In the first half of 2013, insurance businesses re-invested approximately 100 trillion VND (4.7 billion USD) in the economy, doubling the figure in 2008. Through diversified and effective investments in socio-economic development projects, they have provided a shield for the national economy.
The global economic downturn in the past is still challenging the health of the insurance market.
Therefore, to realise its set targets for the 2011-2015 period, it must strive to improve the legal system, enhance the safe performance, management and competitiveness of players, as well as promote international cooperation and integration.-VNA
