VIETNAM BANK ESTABLISHES LAOS INSURANCE JOINT VENTURE

The Bank for Investment & Development in Vietnam (BIDV) has linked with the Commercial Bank of Laos and the Laos-Vietnam Joint Venture Bank to launch Laos Vietnam Insurance JV (LVI). The new operation is the first foreign insurance joint venture by a Vietnamese company. It has been capitalised at $3m and is 51% owned by BIDV. BIDV said that LVI would operate in the non-life and financial investment fields. Initially it will provide insurance products and related services for Vietnamese businesses investing in Laos. However, BIDV said that it planned to offer business to other clients. LVI hopes to achieve a 30% market share by 2012 in the relatively underdeveloped Laos market, becoming one of the two largest suppliers of in the Laos market, while eventually expanding to offer services in the real estate and financial markets.