Vietnam Business Forum’s reporter Luu Hiep had an open interview with Ms Nguyen Thi Phuc Lam, Chief Executive Officer (CEO) of Bao Viet Finance - Insurance Group (Bao Viet).
State-owned enterprises usually have little change in organisation as well as business strategy when they transform into new business forms. However, the transformation of Bao Viet has brought in a breakthrough. Could you please tell us how Bao Viet has renovated to become a strong finance and insurance group?
Under the Vietnamese insurance market development strategy until 2010, Bao Viet will be built into a multi-business finance and insurance group. To realise this strategy, Bao Viet has carried out breakthrough renovations in organisational structure.
Basically, Bao Viet reshuffled and improved its organisational structure to turn from a State-owned corporation into a holding company and sped up the equitisation process of the Corporation as well as the establishment of the Group as stated in a plan approved by the Government. After the transformation, Bao Viet will become the first finance and insurance group in Vietnam to provide a wide array of insurance, finance and banking services.
Bao Viet pays special attention to the diversification of business activities to create the linkages among all of its services toward a one-door financial service model. Securities and fund management activities enable Bao Viet to boost up its traditional insurance business, enhance financial investment efficiency and increase incomes from financial services. In 2007, Bao Viet Joint Stock Bank will complete its establishment procedures in order to become operational in 2008.
The Vietnamese insurance market is now witnessing stiff competition from foreign insurers with rich experience and strong financial capacity. What is the competition strategy of Bao Viet?
At present, the market has begun to have clear separations. Companies with high professional capacity, high service quality as well as strong financial capacity already occupy certain footholds in the insurance market. Of course, companies without much attention to these issues are encountering difficulties.
In 2007, Bao Viet pursues golden operating principles of “innovation, efficiency and sustainable development,” striving to increase its revenue to over VND7,200 billion (US$450 million). Also this year, Bao Viet will complete its equitization with the presence of foreign strategic shareholders and will turn itself into Bao Viet Finance - Insurance Group. This is an opportunity for Bao Viet to tap its available advantages: capital capacity, business administration competence and information technology. Especially, the nationwide network and Bao Viet brand name have been affirmed and positioned. To exploit the advantage of the Group model, Bao Viet will develop into a new high level with the spirit of increasing business self-control and creativity of its affiliates. Bao Viet has set concrete targets for specific business fields as well as solutions to realise them.
What are the fundamental principles of Bao Viet in serving its clients?
In the context characterized by the development in both quantity and quality of the Vietnamese insurance market, Bao Viet is determined to pursue sustainable development strategy based on the commitment of “Providing customers with the best services for development” and three golden principles of “innovation”, “growth” and “efficiency”.
Would you mind sharing preparatory plans of Bao Viet for the post-WTO period when the insurance market is completely open for all players in the coming time?
Bao Viet sees Vietnam’s accession to the WTO as a golden opportunity. In the integration tendency, each business needs more professional business policy and pays more attention to business administration in order to maintain sustainable development. Strong investment in information technology is a breakthrough solution to enhance the level and competitiveness of the Group.
Together with the acceleration of the policy implementation to develop new products and new distribution channels, Bao Viet also attaches much importance to the role of the human resources. Thus, the company significantly invests in heightening the professional levels of its employees to meet the increasing demand of its clients.
Finance and insurance are two of the stressful fields. Whether the challenge of these fields is too heavy for a female CEO like you?
In business, the challenge is exposed to every field. The operations of Bao Viet Group are compared with a symphony orchestra. With talented musicians, Bao Viet will play music masterpieces with deep Vietnamese impressions and with international standards.
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