Deputy Prime Minister Vuong Dinh Hue received Chairman of the China Taiping Insurance Group Luo Xi in Hanoi on November 12, welcoming the firm’s intention to invest in the insurance market of Vietnam.

Deputy Prime Minister Vuong Dinh Hue  

Talking about the investment plan, Luo said the group, ranking fourth among the biggest enterprises in China and 450th among the world’s largest companies, has conducted several market surveys and discussed the issue with relevant Vietnamese agencies. 

The group perceived that developing insurance in Vietnam is in line with the country’s development policies, and it hopes to receive the Vietnamese Government’s permission to open an office and register its trademark so as to do business here.

Valuing China Taiping’s intention, Deputy PM Hue said although the Vietnamese insurance market has been growing fast recently, in terms of both life and non-life insurance, there remains huge potential as this is a market of 100 million people.

He noted aside from doing business in insurance, insurance companies of Vietnam and other countries have also actively taken part in the local Government bond market. As a result, the rate of G-bonds purchased by commercial banks has been reduced strongly, and most of the G-bonds with 10-, 20- and 30-year terms are currently owned by insurance firms, voluntary pension funds and investment funds.

Regarding China Taiping’s proposal, the Deputy PM asked the group to submit its investment dossier to the Ministry of Finance soon, adding that this ministry will handle related procedures within its jurisdiction.