Insurance companies in Vietnam have been told to prepare and gear up for the Asean Economic Community (AEC) and the Trans Pacific Partnership (TPP), which are expected to offer more opportunities, but more competition as well.
According to Pham Thanh Hai, legal director of Bao Minh Insurance, Vietnam’s insurance market needs to be ready for the tough challenges in a more competitive international environment when the AEC and the TPP take effect.
Hai noted that the country’s insurance market has not met its full potential for development and the industry has only been active for 20 years.
As of March 2015, the country had 69 insurance companies, and more than 400,000 employees with a total turnover of Vnd54 trillion (US$2 billion) in 2014.
Hai said the country’s legal framework for the sector is outdated and incomplete, and the industry lacks good governance, which could pose a challenge for the market.
He also noted that most Vietnamese residents still do not buy insurance.
Source : http://insuranceasianews.com/
Keyword : Vietnamese insurers, told to gear up, for AEC, and TPP.
