BMI's Executive Summary for the Vietnam Insurance Report

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This report differs from its predecessors in that it includes BMI's Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI's Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

Vietnam's IBER is 45.2. Relative to other countries in the Asia Pacific region, it is not an especially attractive insurance market for foreign insurers. The economic outlook is for continued growth. Government policies are likely to remain constant over the long-term, particularly as regards the entrance of foreign players, although there is the potential for inflation. The IBER is held back by the underdevelopment of the non-life segment in particular, and the low GDP per capita.

Over the forecast period, we anticipate that non-life premiums will grow by 24% annually in local currency terms and by 25% in US dollar terms. Life premiums are expected to increase by 20% annually in local currency terms and by 21% in US dollar terms.

The competitive landscape in Vietnam, in both the non-life and the life segment, is concentrated. Both segments are open to participation by foreign groups, although foreigners are more important in the nonlife than in the life segment. The foreign presence, particularly in the life segment, remains small.Vietnam's life and non-life segment are expected to continue their high annual rates of growth, in line with anticipated general economic growth. However, this growth will be coming off a small base.

The main weakness of Vietnam's insurance sector at the moment lies in broader economic conditions; namely, the tiny GDP per capita and the ongoing threat of high inflation.

Contents of the Vietnam Insurance Report

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Chapter 1 - The Sector At A Glance

Table: Overview

Key Features Of This Report & Likely Future Changes

Chapter 2 - Latest News

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Evolution Of The Insurance Sector (In Millions Of Currency Specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: BMI Projections (In Millions Of Currency Specified)

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: Vietnam - Economic Activity

Chapter 6 - Country Update

Political Risk US Military Talks

Economic Risk Textile Investment

Business Environment Poor Legal Framework

Country Overview Vietnam Non-Life Segment

Table: Non-Life Segment Rankings Of Markets

Table: Presence Of Cross-Border Insurers Non-Life

Table: Selected Local Insurers

Country Overview Vietnam Life Segment

Table: Life Segment Rankings Of Markets

Table: Presence Of Cross-Border Insurers Life

Table: Selected Local Life Insurers

Chapter 7 - Regional Context

Table: Regional Context - Premiums

Table: Regional Context Total Premiums

Chapter 8 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 9 - Appendix

Table: Latest Estimates / Actual Figures For 2005

Table: Latest Estimates For 2010

Table: Latest Estimates For 2005-2010 (Growth In US Dollar Terms)

Competitive Landscape for Asia Insurance Reports: Sample of
    Companies Ranked

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A cross-border overview of key players and their insurance market share across Asia. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's Asian Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports