Insurance in Vietnam 2025: Growth, Key Players & Regulations

Vietnam’s insurance industry has grown significantly over the past decade, becoming a vital component of the country’s financial sector.

The market includes both life and non-life insurance, with a steady rise in demand driven by economic growth, increasing disposable income, and greater awareness of financial security.

The government’s emphasis on expanding social insurance coverage and improving the regulatory framework has also contributed to the sector’s development, making it one of the most dynamic markets in Southeast Asia.

Life insurance dominates the industry, with products focusing on long-term financial security, health protection, and investment-linked plans.

Foreign insurers such as Prudential, Manulife, and AIA have established a strong presence, competing alongside domestic leaders like Bao Viet Holdings and Bao Minh.

Non-life insurance, on the other hand, is characterized by motor, health, and property insurance, with growing demand from businesses in sectors such as energy, logistics, and construction.

Despite its rapid growth, the industry faces challenges, including relatively low penetration rates and increased competition.

However, opportunities abound as the middle class continues to expand, creating a larger customer base for insurers.

Furthermore, digital transformation and innovative product offerings, such as microinsurance and customizable plans, are reshaping the market, positioning Vietnam’s insurance industry for sustained growth and deeper integration into the country’s economic landscape.

Vietnam insurance industry in numbers

Vietnam’s insurance industry is a big part of Vietnam financial sector and has grown rapidly in recent years. As incomes have risen and Vietnam’s middle class has begun to accumulate valuable assets, the need for insurance has become readily apparent. That said, 2023 was a challenging year for the industry with reported gross written premiums reaching VND 278 trillion or US$10.9 billion a decline from VND 281.4 trillion or about US$11 billion.

This, however, seems to be an anomaly, and the rapid rise of insurance products in Vietnam looks set to continue on the back compulsory insurance laws. This includes for motor vehicle owners and businesses in the construction sector.

With this in mind, insurance has become a very popular sector for foreign investment. In 2023 there were at least 15 branches of foreign insurance firms operating in Vietnam, according to the Annual Report of Vietnam Insurance Market 2023. 

Revenue, key Vietnam insurance, US$millions

Insurance premium revenue

Vietnam’s insurance market posted solid performance in the first quarter of 2025, with notable gains in non-life premiums, reinvested capital, and total assets, despite a decline in benefit payouts, according to data from the General Statistics Office.

Key figures (Q1 2025):

• Total premium revenue: VND 56.58 trillion, up 5.6 percent year-on-year
• – Life insurance: VND 34.56 trillion, up 3.0 percent
• – Non-life insurance: VND 22.01 trillion, up 10.6 percent
• Insurance benefit payments: VND 18.58 trillion, down 8.9 percent
• Reinvestment into the economy: VND 868.83 trillion, up 11.1 percent
• Total assets of insurers: VND 1,026.5 trillion, up 9.7 percent
• Insurance reserves: VND 689.38 trillion, up 12.1 percent

FDI in banking, finance, and insurance in Vietnam

In December 2024, Vietnam’s financial, banking, and insurance sector recorded no new projects but registered US$1.52 million in newly registered capital, according to data from Vietnam’s Ministry of Planning and Investment. This represents no change compared to November, which also had no new projects but recorded US$658,000 in newly registered capital.

In 2024, the sector attracted a total of 6 new projects with US$123.59 million in newly registered capital.

FDI in banking, finance, and insurance in Vietnam by month

The Vietnam Insurance Association

The Vietnam Insurance Association (VIA) is the peak insurance industry body in Vietnam. In operation since 1999, the VIA has been at the centre of the development of the insurance industry in Vietnam. Among its key functions, the organisation lists arranging training courses and seminars and making representations to the government on behalf of insurance companies.

There were about 76 members of the organisation as of August 2023. Among them were big name international insurance brands like QBE, Prudential, and Generali.

Regulations

There are a number of Decrees, Circulars, Laws, and Decisions that govern insurance in Vietnam. This section covers those elements most important for foreign insurance firms, though there are quite a few more.

Law on Insurance Businesses

At the heart of Vietnam’s insurance industry is the Law on Insurance Businesses. This dictates the regulatory framework within which insurance business must operate. The latest iteration of this law was approved in June of 2022 with a number of circulars, decrees, and decisions guiding its implementation.

Foreign ownership limits, requirements

Foreign investors can own up to 100 percent of the charter capital in an insurance business per Article 68 of the Law on Insurance Businesses.

There are, however, a number of additional requirements for foreign insurance companies looking to contribute capital to an insurance firm in Vietnam. These include:

• Proof of no criminal proceedings against the company in the last three years;
• It must have experience providing the insurance services it intends to provide in Vietnam with the last seven years; and
• It must have had total assets of at least US$2 billion in the year preceding its application.

See also: Vietnam’s Foreign Ownership Limits: Quick Guide 2023

Charter capital

On July 1, 2023 the Government of Vietnam issued Decree 46 revising minimum charter capital requirements for insurance firms in Vietnam. These are:

• Life and health insurance businesses: VND 750 billion (US$31 million).
• Unit-linked insurance or retirement insurance businesses: VND 1 trillion (US$41.2 million).
• Unit-linked insurance or retirement insurance businesses: VND 1.3 trillion (US$53.6 million).

Note that the second and third points above appear identical in the decree. Insurance firms should plan for a minimum capital contribution of US$41.2 million, the higher of the two, though could reasonably expect to only need US$53.6 million.

Compulsory insurance

Decree 7 outlines insurance that is compulsory in Vietnam. This includes third party insurance for cars, motorcycles, and mopeds, as well as for construction businesses including professional liability insurance, third-party insurance, and worker’s compensation insurance.

Private insurance products in Vietnam

Note that there are a number of insurance products in Vietnam administered by the state. These include unemployment insurance, social insurance, and health insurance. This article, however, focuses on private insurance products.

Auto-insurance

Car and motorbike insurance in Vietnam is compulsory, however, whereas most cars have insurance, most motorcycles and mopeds do not. Of note, when there is an accident on the road it is generally settled off-book by the parties involved–scratches and minor fender-benders that do not involve injury are generally part and parcel with travelling on Vietnam’s often chaotic streets and more often than not go unreported.

See also: Vietnam’s Auto-Insurance Industry: Overview

Health insurance

Basic health insurance is provided by the Vietnamese state and paid for by employees out of their paychecks. The private healthcare sector, however, tends to be much more advanced and equipped than the public healthcare system and this has seen private health insurance become increasingly popular. Many employers include private health cover in their benefits package for their employees.

See also: Vietnam’s Health Insurance Industry: Overview

Life insurance

Life insurance has experienced a boom period in recent years. Gross written life insurance premiums in 2022 were just over US$7.3 billion. This was up from US$6.55 billion in 2021. This is partly due to a growing interest in life insurance products as the cost of living increases and Vietnamese consumers look to safeguard the financial safety of their families. That said, it may also be partly due to alleged aggressive sales techniques (see ‘controversy’ section below).

See also: Vietnam’s Life Insurance Industry: Overview

Key insurance companies in Vietnam

Vietnam’s insurance market is generally divided into two markets: life insurance and non-life insurance. The non-life insurance market is the smaller of the two. In this light, the top-performing insurance firms in Vietnam are concentrated in the life insurance market. These include:

Bao Viet Holdings

Bao Viet Holdings is Vietnam’s largest and most established insurance company, providing a wide range of life and non-life insurance products. As a state-owned enterprise, it leads the market in both individual and corporate insurance services.

PTI (Post and Telecommunication Insurance Corporation)

PTI is a top non-life insurance provider, offering products such as motor, health, travel, and property insurance. It is known for its extensive distribution network and innovation in digital insurance services.

PVI (PetroVietnam Insurance Corporation)

PVI is a leader in non-life insurance, specializing in industrial and commercial insurance for sectors like energy and petroleum. It is a key partner for large enterprises in Vietnam.

Bao Minh Insurance

Bao Minh is a prominent player in the non-life insurance market, offering products like motor, health, property, and liability insurance. It serves both retail and corporate customers.

VietinBank Insurance (VBI)

VBI, a subsidiary of VietinBank, provides non-life insurance services, including health, motor, and property insurance. It leverages VietinBank’s extensive network to grow its client base.

Manulife Vietnam

Manulife is a leading foreign-owned life insurance company, offering a wide range of savings, investment-linked, and health insurance products. It has a strong focus on customer service and digital transformation.

Prudential Vietnam

Prudential is one of the largest life insurers in Vietnam, providing solutions for life protection, savings, and retirement planning. It is recognized for its innovative and customer-centric approach.

AIA Vietnam

AIA Vietnam specializes in life insurance and health protection products, focusing on long-term savings and financial security. It is a leader in offering modern and flexible insurance solutions.

Generali Vietnam

Generali, an Italian insurance company, provides life insurance and wealth management services in Vietnam. It is known for its personalized and tailored insurance products.

Chubb Vietnam

Chubb offers both life and non-life insurance, including property, casualty, and accident coverage. It serves individuals, SMEs, and large corporations with comprehensive solutions.

FWD Vietnam

FWD is a fast-growing life insurer focusing on digital-first, customer-friendly products. It is known for its innovative approach to simplifying insurance and making it more accessible.

Liberty Insurance Vietnam

Liberty specializes in non-life insurance, particularly in motor, health, and property segments. It is a key player in the retail market, offering customizable and flexible products.

These companies represent the backbone of Vietnam’s insurance industry, catering to diverse needs across personal and commercial segments while driving innovation and growth in the market.

Controversies

Vietnam’s insurance sector has struggled over the last year or so with a number of high-profile instances of consumers claiming they were duped into purchasing insurance products.

Manulife Vietnam and Saigon Commercial Bank

In 2023, serious allegations emerged involving Saigon Commercial Bank (SCB) and Manulife Vietnam, where bank customers were reportedly deceived into purchasing insurance policies through misleading tactics. Customers were allegedly told by SCB staff that they were depositing money into high-interest savings products, but in reality, they were sold insurance policies from Manulife Vietnam. This practice was driven by bancassurance agreements, in which bank employees received commissions for selling insurance, incentivising the mis-selling of products.

The incident sparked outrage among customers who found themselves locked into long-term insurance policies instead of the straightforward savings accounts they believed they were opening. The situation underscored the risks associated with bancassurance arrangements, where banking staff, often untrained in insurance products, aggressively pushed these policies to meet sales targets.

Ngoc Lan and MVI Life Insurance

What’s next?

Insurance in Vietnam is still a relatively new product but it is gaining in popularity very quickly. With foreign insurance firms able  to wholly own insurance businesses in Vietnam, the industry is likely to continue to expand quickly. This is in line with strong growth in Vietnam’s financial sector more broadly including in banking and securities.

That said, Vietnam’s economy is very dynamic and prone to change quickly. Foreign firms keen to keep abreast of the latest developments should make sure they subscribe to the-shiv.

First published December 29, 2023. Last updated April 21, 2025.