A number of leading Vietnamese banks are taking steps to broaden their financial ecosystems by establishing or acquiring insurance companies.
This trend is evident among institutions such as Asia Commercial Joint Stock Bank (ACB), Techcombank, and VPBank, which are seeking to integrate insurance alongside their existing banking, securities, and asset management services.
ACB has recently initiated procedures to consult its shareholders on the creation of a non-life insurance subsidiary.
According to a report by Vietnam.vn, the bank – which already manages several wholly owned companies in securities, debt management, leasing, and fund management – is looking to further diversify its offerings.
ACB also maintains an exclusive distribution agreement for life insurance products with Sun Life Vietnam.
Techcombank has also made significant moves in this direction. In the latter part of 2024, the bank launched both a non-life insurance company, TCGIns, and a life insurance business, Techcom Life.
These entities have entered into a distribution partnership, with Techcombank serving as the main channel for Techcom Life’s insurance products.
VPBank, meanwhile, has increased its ownership in OPES Non-Life Insurance Company to nearly full control and is preparing to launch a life insurance subsidiary with a charter capital of close to VND 2,000 billion.
According to VPBank representatives, the bank’s strategy is to evolve into a comprehensive financial group, building on its existing interests in consumer finance, insurance, and securities.
The approach of integrating banking and insurance is not limited to these three banks.
Other partnerships, such as those between MB and MIC, BIDV and BIC, and VietinBank and VBI, illustrate a broader industry trend.
Analysts told Vietnam.vn that banks are leveraging their customer bases and technological capabilities to offer a full range of financial services, including savings, investments, insurance, and asset management.
Banks are also exploring opportunities in the crypto asset sector. Following the government’s recent approval of a pilot program for the crypto asset market, several banks and their affiliates have established related exchanges.
These developments reflect a response to the growing interest in digital assets among Vietnamese consumers, with the country ranking among the top globally for crypto activity.
In a related development, Vietnam’s Ministry of Finance is seeking public input on proposed amendments to the Law on Insurance Business.
The ministry has indicated that while the 2022 law brought improvements, the sector’s growth has slowed, partly due to complex regulations.
The draft amendments are designed to streamline licensing, clarify agent roles, and simplify procedures for insurance companies.
One notable proposal would allow life insurance agents to sell non-life products, but not those of competing life insurers, and vice versa for non-life agents.
The Ministry of Finance has stated that these changes are intended to improve transparency and reduce conflicts of interest in companies that operate both life and non-life businesses.
The Vietnam Insurance Association is also developing a new code of conduct for life insurance agency managers, aiming to standardise practices across the industry.
