Vietnam Insurance Market Boasts Potential

Vietnam insurance revenue is expected to account for 4.2 per cent of the country’s GDP by 2010, showing the potential market for investors.

 

This target was set by the Ministry of Finance (MOF) at the meeting yesterday with insurance companies. The Finance Ministry said Vietnam would strive to increase insurance premiums by 24 per cent a year in the 2001-2010 period.

 

To reach the target, Vietnam will continue to develop enterprises, improve financial and trading capability, and the quality of services, said Trinh Thanh Hoan, head of the MOF’s Insurance Department.

 

The MOF will also complete policies creating favorable conditions for the insurance market.

 

In 2006 alone, Vietnam grossed insurance revenue of VND17.75 trillion (US$1.1 billion), making up 1.82 per cent of GDP and increasing by 14.08 per cent over 2005. Insurance enterprises reinvested VND5 trillion into the economy in the year, bringing total investment to VND30.6 trillion as of the end of 2006, up 19.3 per cent against 2005.

 

At present, Vietnam houses 37 insurance companies, including 21 non-life, seven life, one reinsurance and eight insurance brokerage firms. (Vietnam and World Economy)