The presence of the international insurance companies in Vietnam is increasing. The trend to penetrate the Vietnam market through joint ventures has also increased.
Some of the largest domestic insurance companies as PVI, Bao Viet, Bao Minh, Vinare have ‘shake-handed’ with foreign strategic shareholders. Even PVI in 2011 has brought in the 2nd foreign partner, Talanx Group, the 3rd largest insurer in Germany.
Following the trend, smaller insurance companies are also searching for foreign partners. In the middle of Apr 2012, AAA Insurance reported to sell 30% shares to IAG – an Australian partner. The Australian insurer also said that they would look to further increase the percentage of share ownership to 49% in AAA. Meanwhile, an emerging insurance company like BIC also has very powerful moves in searching for foreign partners.
Indeed, the wave of foreign investment in Vietnam’s insurance market has been predicted. The foreign insurance companies involved in the insurance market of Vietnam, especially in the area of non-life insurance is considered as an inevitable trend, since Vietnam’s insurance market is a new market with many potential advantages, while domestic insurance companies are still weak and lack of professionalism. Meanwhile, the foreign insurance companies can provide experts in such fields as business management, technology training, product distribution as well as human resource management.