Insurance Law & Regulations in Vietnam

Executive summary

Vietnam continues to make economic progress. Economic growth has already lifted many Vietnamese out of poverty. At the same time, the middle class is expanding.

WTO membership, the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) and several other significant free trade agreements, and membership in the ASEAN Economic Community (“AEC”) have given Vietnam access to foreign markets and capital, while making Vietnamese companies, particularly Vietnamese insurance enterprises, stronger through increased competition.

Many foreign insurance companies (particularly in the life segment) operate in Vietnam and treat Vietnam as a natural extension of their regional or global footprints.

New products are being developed. Agency networks are being built.

In the non-life segment, local companies have generally shown more pricing discipline than have their counterparts elsewhere in the region.

Motor insurance–so often a thankless and profitless line in emerging markets–accounts for about one third of the premiums written in the non-life segment.