VIETNAM SEES 30% GROWTH IN NON-LIFE, 12% GROWTH IN LIFE

The Vietnamese insurance sector continued its rapid growth rate in the first nine months of 2007, with non-life sector premiums growing 30% year on year to 8.35tn dong ($523m) and life premiums growing by 12% to 9.5tn dong — in both cases the fastest growth rates over the previous three years. The Vietnam Insurance Association noted that many insurers had increased their capitalisation levels, with total capitalisation in the market reaching 15tn dong, and that this level is expected to rise to 20tn dong this year. Bao Viet remained the highest-capitalised at 6.8tn dong. There are currently seven life assurers and 23 non-life players in Vietnam. From January 1 foreign insurers were allowed under the World Trade organisation agreement to offer mandatory insurance cover, including motor liability and property fire insurance. Meanwhile, Vietnam has permitted local insurers to use chartered capital to invest overseas, provided they obtain the written approval of the Finance Ministry, according to a report in Vietnam Investment Review .