The strategy for developing the Vietnam insurance market until 2030

On 5 January 2023, Vietnam Government officially released Decision No. 07/QD-TTg approving the strategy for developing Vietnam's insurance market until 2030 ("Decision No. 07"). Compared to the draft version of the strategy that the MOF proposed, the finally issued Decision No. 07 does not make any major change, but remain the following key points for developing Vietnam's insurance market until 2030:

a) Target for the development of Vietnam’s insurance market until 2030:

- Average growth of insurance premium:

  • 2021-2025: + 15% per year, up to 2025 3%-3,3% of GDP;
  • 2026-2030: + 10% per year, up to 2030 3,3%-3,5% of GDP.

- Average growth of insurance premium via online channels:

  • 2021-2030: + 10% per year

- Percentage of the population participating in life insurance:

  • 2025: 15%
  • 2030: 18%

- The average growth rate in total assets, total investment, total technical provisions, and equity is expected to reach:

  • 2021 – 2025: 15%/year
  • 2026 – 2030: 10%/year

- Per capita insurance premium:  

  • 2025: VND 3 Mil
  • 2030: VND 5 Mil   

b) Decision No. 07 approved a number of solutions to achieve those targets, including:

  • complete the insurance business legal framework;
  • strengthen the capacity of insurance companies on finance, risk management, corporate governance, customers’ service quality and the transparency;
  • develop and diversify insurance products;
  • diversify and professionalize distribution channels; v develop and enhance the human resources quality;
  • peed up the propagation on commercial insurance;
  • speed up the application of information technology in the insurance business operations;
  • strengthen the effectiveness of State management in the insurance sector; strengthen the role of socio-professional organizations (e.g., the Insurance Association of Vietnam); and speed up international cooperation in the insurance sector.