Investment Fund: equity; idle capital derived from technical provisions, subject to the Government's regulations; other legitimate funds prescribed in law.

Rules

• Ensure safety, liquidity and efficiency; comply with law and self-responsibility rules applied to investment activities;
• Technical provisions may be used as investments in Vietnam only, except those specified in point b of clause 2 of Article 100 of Law Insurance Business No. 08/2022/QH15;
• It is prohibitory that borrowed funds are used for investment and fiduciary investment in securities, real estate business or contribution of capital to other enterprises;
• It is prohibitory that investment accounting for 30% of the portfolio of investments in companies belonging to the same group of companies having mutual ownership relationship is made. This prohibition clause shall not apply to deposits made at credit institutions and outward investment funds existing in the form of establishment of companies or establishment of foreign branches in the receiving foreign countries;
• Investments made in return for those of shareholders or members contributing capital or persons associated with these shareholders or members contributing capital are not allowed, except in case of deposits made at transaction offices of shareholders or members that are credit institutions;
• Purchase of corporate bonds issued to serve certain purposes of restructuring of loans of issuing companies is not allowed;
• In case of fiduciary investments, trustees must be licensed to perform fiduciary investment activities falling within the scope of fiduciary investment.

Prohibitions

• Investment in real estate business, except in the following cases: purchasing stocks of real estate businesses listed on the securities market, fund certificates of public funds; purchasing, investing in or owning real property used as business offices, locations or treasure vaults for direct uses for their insurance business; leasing out unoccupied business establishments under their control or management; seizing real property by managing or disposing of mortgage bonds, or recovering loans secured by real property within 03 years from the lien date;
• Investment in precious metals, jewels;
• Investment in intangible fixed assets, except those used for commercial and business purposes of insurance companies or branches;
• Investment in derivatives or derivative contracts, except those listed as provisions for risks arising from insurance, reinsurance contracts and portfolios of stocks that insurance companies, reinsurance companies or foreign branches in Vietnam are holding.