Vietnam, MS&AD Group deepen insurance ties for market growth

Both sides exchanged views on strategic directions for cooperation, underscoring the importance of enhancing proactive risk management capabilities.

Speaking at the meeting, Deputy Minister Can noted that Vietnam’s GDP growth in the first quarter (Q1) of 2025 reached 6.93 per cent on-year.

The meeting overview

While slightly below the projected scenario, it marked the highest first-quarter growth rate from 2020 to 2025.

The deputy minister highlighted the close correlation between insurance sector performance and GDP growth.

As Vietnam enters a phase of accelerated economic expansion aiming for double-digit growth, the insurance industry is expected to grow correspondingly.

“We believe Vietnam still holds substantial potential for insurance market development. Compared to other countries in the region and globally, insurance penetration in Vietnam remains relatively low, which means there is significant room for market expansion,” Can said.

He also referred to a strategy for the development of Vietnam’s insurance market.

The strategy outlines development viewpoints, goals, and solutions to promote a proactive and sustainable insurance market aligned with the financial sector’s development strategy and the socioeconomic development plan for the new era.

For 2026-2030, the average growth target is 10 per cent annually, with the sector accounting for 3.3-3.5 per cent of GDP by 2030.

“The targets for double-digit growth reflect the relatively small market size of Vietnam’s insurance sector compared to regional and global peers. This presents both challenges and opportunities, especially as the sector remains committed to overcoming structural and regulatory hurdles,” the deputy minister stated.

He added that the legal framework governing the insurance business in Vietnam is being continuously improved, creating a favourable legal basis for market development.

Chairman Noriyuki Hara of MS&AD Insurance Group recalled his previous visit to Vietnam six years ago on the occasion of the 10^th anniversary of MSIG Vietnam, the group’s non-life insurance company in the country.

Expressing his impression of Vietnam’s dynamic transformation, Hara thanked the Ministry of Finance for its support in helping MS&AD secure favourable conditions for growth.

In the context of increasingly complex climate change and natural disasters, Hara emphasised the need for a shift from reactive to risk-based management models.

“The insurance industry must transition from responding after disasters to managing risks proactively. In Japan, insurers have developed comprehensive internal risk management systems, including the establishment of dedicated advisory boards,” he noted.

He further emphasised the vital role of insurance associations in Japan in supporting and guiding member companies to ensure consistency and transparency in pricing policies and in safeguarding customer interests. “Companies must also strictly comply with data security regulations to protect customer rights to the fullest,” he added.

Deputy Minister of Finance Le Tan Can (middle) giving remarks

In response, Deputy Minister Can noted that the Ministry of Finance is currently working on regulations for capital adequacy and detailed guidelines for risk-based capital models to be applied from January 1, 2028, and has called for the support of organisations and experts in this process.”

“For the non-life insurance sector, the MoF is promoting the development of agricultural insurance products, catastrophe and disaster insurance, and coverage for emerging risks through insurance risk funds, as well as green insurance, cyber safety insurance, and insurance for digital transactions,” he added. The MoF is also pushing for digital transformation and the application of advanced IT across all areas of insurance operations, with strong measures in place to ensure customer data privacy and security.

Vietnam’s insurance market currently comprises 85 licensed entities, including 32 non-life insurers, 19 life insurers, two reinsurers, 32 insurance brokerage firms, and one foreign non-life insurance branch.

Among them, five insurance companies have Japan’s capital injection, including MSIG Vietnam. These Japan-invested companies have been actively contributing to the market’s growth and development.

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