Insurance Market in Vietnam

15 May

By: B&Company Vietnam

Reports & Publications

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“Annual growth at nearly 20% “

In 2016, Vietnam Insurance Market has the gross insurance premiums at about USD 3.91 billion,
increasing 22.64% compared with the previous year.

Also, the CARG index of Vietnam Insurance market is at 18.68% in the period of 5 years (2011-2016),
which shows the good performance of Vietnam Insurance market.

Insurance companies in Vietnam are operated
in life insurance or non-life insurance.
Life insurance market makes the growth of 29.8%,
reaching USD 2.25 billion with 18 operating companies in 2016.
Prudential is the biggest companies in terms of insurance premiums revenue with the market share of 27.11%.

The second biggest company is Bao Viet Nhan Tho (26.02%), followed by Manulife (11.91%),
AIA (10.34%) and Dai-ichi (10.27%).

Of which, Established as an 100% Japanese capital company in 2007,
Dai-ichi is the only Japanese brand operating in life insurance in Vietnam.

Non-life insurance market has increased to USD 1.65 billion,making a rising rate at 14.04%
with 29 operating companies in 2016.
PVI is the leader of market with the market share of 18.65%,
followed by Bao Viet (17.41%), Bao Minh (8.34%),
PTI (8.3%) and PJICO (6.78%).

Japanese companies offen join in Viet Nam non-life insurance market in two ways.
The first way is to establish a join venture company with domestic partners
such as a cooporation between Bao Viet and Tokio Marine in 1996 or Sompo Japan NipponKoa,
Mitsui Sumitumo Insurance with Ho Chi Minh City Insurance (now is Bao Minh) in 1997.

Another way is to buy shares of a domestic company such as Sumitomo Life
investing Bao Viet with the capital at USD 340 million to hold 18% shares in 2013.

As above, Vietnam Insurance market has grown quickly in the past few years.
However, there are still some challenges for enterprises who wish to join in Vietnam market.

“Oligopoly, Lower income and Insurance premium”

According to survey in 2014, the propotion
of Vietnamese joining in life insurance is only at 8% of population,
which shows the fact that Vietnamese people
are not care very much about their life insurance.
One of the reasons is their low income
as they can not afford the fee for private insurance.

Another reason is that people are not satisfied with the terms of risks in insurance contract.
The same situation is observed in Non-life insurance. For example, Bao Viet has health insurance for many ages,
ranges from USD 50-320 per year only for main combo,
which does not include out-patient treament, dental and maternity insurance.

Besides, Vietnam Insurance market was controled by some big players.
New companies wanting to join the market have to be well prepared to compete with these big players.
In 2015, Great Eastern have drawed out of Vietnam to focus on other main markets in Singapore
and Malaysia in which they are leading insurance market.
At that point of time, the market share of Great Eastern is only 0.08% and
they decide to put resources into more potiential markets.

“Yet, Market grows fast “

However, Vietnam insurance market was expected to increase stably.
According to Mr. Tran Xuan Ha, Deputy Minister of Finance,
Vietnam Insurance market has a great potential to develop as insurance premiums
is only 2.4% compared with GDP.

In addition, the government aims to achieve USD 3,750 GDP
per capita by 2020, which meaning that
Vietnamese will have better income in the next few years.
Also, people’s awareness of necessity for insurance is increasing
(according to Mr. Phan Kim Bang, president of the Association of Vietnam Insurers).

For example, Vietnamese people have to confront with many floods and droughts in the past of few years.
There is also a rise of cancer risk due to unsafe food. These factors make
Vietnamese people care more about  risk management solution.

According to Mr. Phung Dac Loc, general secretary of the Association of Vietnam Insurers,
the number of high income farm owner in Vietnam is at about 5 million, and
the value of insurance contract they usually sign is about USD 1.37 million.

Although there are still challenges, Vietnam insurance market has many opportunies for foreign investors.
Particularly, Vietnam and Japan are building a good cooperation on all aspects
and many Japanese companies have invested in the market for almost 20 years.
Therefore, insurance market is one of the most potential industry that Japanese investors should consider.


  1. Ministry of Finance – Department of Insurance Supervisory and Authority (2015), Report on Vietnam Insurance Market
  2. Ministry of Finance – Department of Insurance Supervisory and Authority (2016), Overview of Vietnam insurance market
  3. Bao Viet Tokio Marine Insurance Company Limited’s Homepage. Available at: (Acessed on April 12th)
  4. Viet Bao (2009), the first 100% foreign capital insurance company in Vietnam. Available at : (Accessed on April 12th)
  5. Bao Viet Insurance, Bao Viet Health Insurance Introdution. Available at: (Acessed on April 13th)
  6. Thanh Nien (2016), Vietnamese people have no preventive habit with insurance. Available at: (Access on April 14th)
  7. Vietstock (2014), Only 8% Vietnamese people buying insurance. Available at: (Access on April 14th)
  8. Thanh Nien newspaper (2016), Great Eastern draw out of Vietnam. Available at: (Access on April 14th)
  9. Invesment Newspaper (2017), Insurance market have many opportunities in 2017. Available at: (Accessed in April 14th)
  10. Vietnam Investment Review, 2016, Vietnam’s Insurance Market blooming. Available at: (Accessed in April 24th)