Cathay Life (Vietnam) is facing scrutiny for marketing its life insurance products as “super savings” schemes or “savings books”, misleading consumers about the true nature of the product, local news outfit, Tuoi Tre has alleged.
The articles says that:
- Marketers are promoting these products on social media with promises like “deposit VND 4.3 million per year for a VND 100 million return”, or “deposit VND 43 million to get VND 1 billion”, using emotionally charged language about securing children’s futures and retirement planning.
- In reality, these are life insurance policies with obligations and long-term commitments, not guaranteed bank savings products. According to Vietnamese law, only licensed credit institutions may accept savings deposits.
- Lawyer Tran Minh Hung from the Ho Chi Minh City Bar Association warned that deliberately blurring the line between savings and insurance to induce contracts could constitute fraud under insurance business laws.
- Despite repeated inquiries, Cathay Life has not responded to media questions, including those sent via its official hotline and published email address.
Misleading insurance sales practices like those alleged against Cathay Life risk reigniting public distrust in the sector, which has yet to recover from recent scandals involving forced bancassurance sales and ambiguous life insurance contracts tied to savings plans.
Specifically, past investigations into major banks and insurers revealed systemic mis-selling, prompting government scrutiny, a wave of customer complaints, and a lot of bad press. This saw Vietnam’s insurance market take a dip from which it is still recovering.
See also: Insurance in Vietnam 2025: Growth, Key Players & Regulations