TẠP CHÍ ĐIỆN TỬ
Vietnam emerges as a destination for guarantee and credit insurance
As a co-host of the ongoing 5th Annual General Meeting of the Asia Guarantee & Credit Insurance Association (AGCIA), Bao Viet Insurance reaffirms its leadership in Vietnam’s insurance sector.
Vietnam is hosting the 5th Annual General Meeting of the Asia Guarantee & Credit Insurance Association (AGCIA) on October 23 and 24, marking the country’s growing importance in the field of credit and guarantee insurance. Bao Viet Insurance, a founding member of the AGCIA and Vietnam’s sole representative, is co-host of the event, alongside Seoul Guarantee Insurance (SGI).
The gathering, held in Hanoi, brings together delegates from nine countries, including Vietnam, South Korea, the Netherlands, Germany, the Philippines, Laos, Mongolia, Cambodia, and Indonesia, along with key players such as credit rating agencies, credit funds, and insurance and reinsurance companies in the region.
During the two-day event, discussions revolve around emerging trends, exploring collaborative opportunities in the credit and guarantee insurance sector, and examining the vital role of credit insurance in promoting sustainable global economic development. This includes fostering new cooperative models to improve access to insurance services for businesses, thereby bolstering economic growth and creating value for communities. Delegates will also review existing policies and regulations in the insurance industry, providing recommendations to drive the development of credit and guarantee insurance both in Vietnam and across the region.
Vietnam hosting the meeting is particularly significant given the recent passage of the Law on Bidding No. 22/2023/QH15, which takes effect in January 2024. This law provides a solid legal framework for applying guarantee insurance in bidding processes and project implementation, positioning Vietnam as an attractive destination for cooperation and investment in the insurance industry. Coupled with the country’s rapid economic growth and stable political climate, the event highlights Vietnam’s emerging role in shaping the regional insurance landscape.
The first session, led by Bao Viet Insurance, focused on the topic “Surety vs. Bank Guarantee in Vietnam”, providing insights into the opportunities and challenges faced by both forms of guarantees in today’s market. By exploring the potential of guarantee insurance as a viable alternative to traditional bank guarantees, the session aimed to outline cooperative strategies that can benefit various stakeholders. Bao Viet Insurance, as a leader in the sector, has actively promoted guarantee insurance since 2020, providing strong financial assurance for large-scale investment projects, construction, and service provisions.
Within the framework of the event, Mr. Roberto Castillo, General Manager of Hannover Re, will speak on “Global Surety Market Trends”, shedding light on regulatory changes and macro-economic factors affecting international guarantee markets, while Mr. Richard Wulff, Executive Director of the International Credit Insurance & Surety Association (ICISA), will discuss “The Role of Surety & Credit Insurance in Global Economic Growth”, emphasizing the critical function of these insurance tools in helping businesses navigate challenges and ensure long-term sustainable development. SGI will also present its journey and growth strategy in Vietnam’s guarantee insurance market, as well as its plans for an IPO in 2024, focusing on establishing flexible, sustainable solutions to enhance financial security for businesses and customers alike.
As the first and oldest non-life insurance brand in Vietnam, Bao Viet Insurance boasts a 60-year legacy of pioneering development in the country’s insurance industry. Its status as a founding member of AGCIA underscores its commitment to fostering international partnerships, sharing knowledge, and contributing to building a robust, sustainable insurance ecosystem. Bao Viet Insurance has been recognized as a “National Brand” for quality and service and was honored with the “60 Years of Excellence Award - Insurance, Vietnam 2024” by Global Banking & Finance Review in August.
In addition to its leading role in the Vietnamese market, Bao Viet Insurance continues to invest in modernizing its operations, including a digital transformation project to enhance financial management, investment, and risk mitigation. By prioritizing customer needs and offering innovative insurance solutions, Bao Viet aims to help businesses thrive while promoting economic stability. Through these efforts, the company is dedicated to guiding customers towards a future of “Stability in living, Peace of mind in health”, reinforcing its leadership in Vietnam’s dynamic insurance industry.
