{"id":5836,"date":"2023-05-22T13:50:13","date_gmt":"2023-05-22T06:50:13","guid":{"rendered":"https:\/\/cdlaf.az9s.group\/?p=5836"},"modified":"2023-05-25T11:21:21","modified_gmt":"2023-05-25T04:21:21","slug":"conditions-for-operating-insurance-business-for-foreign-investor-in-vietnam-part-1","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/conditions-for-operating-insurance-business-for-foreign-investor-in-vietnam-part-1\/","title":{"rendered":"Conditions for operating insurance business for foreign investor in Vietnam (Part 1)"},"content":{"rendered":"<p>In today&#8217;s era of globalization, Vietnam is becoming an attractive destination for foreign investors. The outstanding development of the economy and policy reform have created a favorable environment for investors from all over the world to flock to our country. In this context, the insurance industry is not an exception. Insurance, an important field in protecting assets and ensuring financial security, plays an important role in attracting foreign investor. However, in order to operate an insurance business for foreign investor in Vietnam, it is necessary to comply with some conditions and regulations of the law.<\/p>\n<p>In this article, we will research about the conditions for operating insurance business for foreign investor in Vietnam. We will review the provisions of the Vietnamese Insurance Law and other guidance documents to gain a better understanding of the necessary process and requirements.<\/p>\n<figure id=\"attachment_3639\" aria-describedby=\"caption-attachment-3639\" style=\"width: 1065px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3639 size-large\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/tierra-mallorca-NpTbVOkkom8-unsplash-post-dinh-gia-nha-1065x800.jpg\" alt=\"\" width=\"1065\" height=\"800\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/tierra-mallorca-NpTbVOkkom8-unsplash-post-dinh-gia-nha-1065x800.jpg 1065w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/tierra-mallorca-NpTbVOkkom8-unsplash-post-dinh-gia-nha-533x400.jpg 533w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/tierra-mallorca-NpTbVOkkom8-unsplash-post-dinh-gia-nha-768x577.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/tierra-mallorca-NpTbVOkkom8-unsplash-post-dinh-gia-nha-1536x1154.jpg 1536w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/tierra-mallorca-NpTbVOkkom8-unsplash-post-dinh-gia-nha.jpg 1920w\" sizes=\"auto, (max-width: 1065px) 100vw, 1065px\" \/><figcaption id=\"caption-attachment-3639\" class=\"wp-caption-text\">Foreign investor operate insurance business in Vietnam<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #a32411;color:#a32411\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #a32411;color:#a32411\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cdlaf.vn\/en\/conditions-for-operating-insurance-business-for-foreign-investor-in-vietnam-part-1\/#1_Market_access_conditions\" >1. Market access conditions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cdlaf.vn\/en\/conditions-for-operating-insurance-business-for-foreign-investor-in-vietnam-part-1\/#2_Conditions_on_the_form_of_enterprise_allowed_to_insurance_services_business\" >2. Conditions on the form of enterprise allowed to insurance services business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cdlaf.vn\/en\/conditions-for-operating-insurance-business-for-foreign-investor-in-vietnam-part-1\/#3_Scope_of_operations_for_insurance_enterprise_reinsurance_enterprise_and_foreign_branch_in_Vietnam\" >3. Scope of operations for insurance enterprise, reinsurance enterprise, and foreign branch in Vietnam<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cdlaf.vn\/en\/conditions-for-operating-insurance-business-for-foreign-investor-in-vietnam-part-1\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Market_access_conditions\"><\/span>1. Market access conditions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table id=\"tablepress-1\" class=\"tablepress tablepress-id-1\" style=\"height: 300px;\" width=\"513\">\n<thead>\n<tr class=\"row-1 odd\">\n<th class=\"column-1\">No.<\/th>\n<th class=\"column-2\">Profession<\/th>\n<th class=\"column-3\">VSIC<\/th>\n<th class=\"column-4\">CPC<\/th>\n<th class=\"column-5\">Restrictions on market access<\/th>\n<th class=\"column-6\">License<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-hover\">\n<tr class=\"row-2 odd\">\n<td class=\"column-1\">1.<\/td>\n<td class=\"column-2\" style=\"text-align: justify;\">Insurance and insurance-related services<\/td>\n<td class=\"column-3\">\n<p>6511<\/p>\n<p>6512<\/p>\n<p>6520<\/p>\n<p>\u00a0<\/p>\n<\/td>\n<td class=\"column-4\">\n<p>8121<\/p>\n<p>8129<\/p>\n<\/td>\n<td class=\"column-5\" style=\"text-align: center;\">There is no restriction on the percentage of capital contribution, except: after 5 years from the date of accession, a foreign insurance enterprise is established a branch of non-life insurance.<\/td>\n<td class=\"column-6\" style=\"text-align: center;\">The License for establishment and operation is also the Certificate of business registration<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>According to the noted information above, foreign investor is currently not restricted in market access conditions, so he\/she is allowed to establish <strong>100% foreign-owned enterprise <\/strong>insurance service businesses in Vietnam. However, the insurance field is conditional business line, thus in addition to meeting the market access conditions, foreign investor also shall meet specific conditions prescribed by Vietnamese law, which are recognized in section 2 below.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Conditions_on_the_form_of_enterprise_allowed_to_insurance_services_business\"><\/span>2. Conditions on the form of enterprise allowed to insurance services business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to the regulations of Vietnamese law, the current organizational forms for insurance enterprise and reinsurance enterprise are Joint Stock Company and Limited Liability Company. With the Joint Stock Company model, the enterprise to be established shall have the participation of at least 03 shareholders. With the Limited Liability Company model, the investor have the right to choose single member Limited Liability Company or Limited Liability Company with two or more members.<\/p>\n<p>The structure and management of the enterprise may vary depending on the type of enterprise and the legal status of the investor (individual or organization).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Scope_of_operations_for_insurance_enterprise_reinsurance_enterprise_and_foreign_branch_in_Vietnam\"><\/span>3. Scope of operations for insurance enterprise, reinsurance enterprise, and foreign branch in Vietnam<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Insurance enterprises, branches of foreign non-life insurance enterprises will be entitled to perform the following activities:<\/p>\n<ul>\n<li>Insurance business, reinsurance business, and reinsurance retrocession.<\/li>\n<li>Managing funds and investing capital from insurance business operations.<\/li>\n<li>Providing ancillary insurance services.<\/li>\n<li>Other activities directly related to insurance business operations.<\/li>\n<\/ul>\n<p>Reinsurance enterprises and foreign reinsurance branches are allowed to conduct the following business activities:<\/p>\n<ul>\n<li>Doing reinsurance business and reinsurance retrocession.<\/li>\n<li>Managing funds and investing capital from reinsurance business operations.<\/li>\n<li>Other activities directly related to reinsurance business operations.<\/li>\n<\/ul>\n<p>Insurance enterprises and branches of foreign non-life insurance enterprises are only allowed to one type of insurance business: life insurance, health insurance, non-life insurance, except for the following cases:<\/p>\n<ul>\n<li>Life insurance enterprises in the health insurance business.<\/li>\n<li>Non-life insurance enterprise and branch of foreign non-life insurance enterprise in the health insurance products business with a duration of 01 year or less and life insurance products with a duration of one year or less that cover the risk of death.<\/li>\n<li>Health insurance enterprise in life insurance products business with a duration of 01 year or less that cover the risk of death.<\/li>\n<\/ul>\n<p>The outstanding development of the economy, along with supportive policies and legal reforms, which has created a favorable environment for foreign insurance companies to establish and operate in Vietnam. Compliance with the conditions and regulations of the law is an important factor to ensure the safe, transparent, and sustainable operation of foreign investor in the insurance business. Requirements such as registration, licensing, charter capital, rights and obligations are clearly defined to ensure sustainable development and maximum protection for both investor and policyholder. To research more about other specific conditions that insurance enterprise shall comply with, please refer to the article<a href=\"https:\/\/cdlaf.vn\/en\/conditions-for-operating-insurance-business-for-foreign-investor-in-vietnam-part-2\/\" target=\"_blank\" rel=\"noopener\"><em><strong> &#8220;Conditions for operating insurance business for foreign investor in Vietnam <\/strong><strong>&#8211; Part 2.&#8221;<\/strong><\/em><\/a><\/p>\n<p><strong><em>Time of writing:<\/em><\/strong> 15<em>\/05\/2023<\/em><\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer at <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@cdlaf.vn<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<div style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5519 size-full aligncenter\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png\" alt=\"\" width=\"1080\" height=\"600\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png 1080w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-720x400.png 720w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-768x427.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/div>\n<\/div>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CDLAF\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>As a Vietnamese law firm, we have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CDLAF&#8217;s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/establishment-of-enterprise-in-vietnam-what-foreign-investors-need-to-consider-part-1\/\">Establishment of Enterprise in Vietnam, What Foreign Investors Need to Consider (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/the-establishment-of-enterprises-in-vietnam-what-investors-need-to-consider-part-2\/\">Establishment of Enterprise in Vietnam, What Foreign Investors Need to Consider (Part 2)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/procedure-for-foreign-commercial-franchising-registration-in-vietnam\/\">Procedure for Foreign Investor to contribute capital, purchase shares in the enterprise in Vietnam.<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/enterprises-with-the-opening-and-using-of-direct-investment-capital-account\/\">The enterprise with opening and using direct investment capital account<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/avoiding-the-risk-when-leasing-the-office-in-vietnam-some-recommendations\/\">Avoiding the risks when leasing the office in Vietnam \u2013 some recommendations<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/foreign-investors-provide-employment-services-in-vietnam\/\">Foreign Investors provide Employment Services in Vietnam<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/franchise-in-viet-nam-part-1\/\">Franchise in Vietnam (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/franchise-in-viet-nam-part-2\/\">Franchise in Vietnam (Part 2)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/foreign-investor-doing-hotel-service-business-in-vietnam\/\">Foreign investor doing hotel business in Vietnam<\/a><\/li>\n<\/ul>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2681-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2681\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/5836#wpcf7-f2681-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2681\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2681-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<h2 class=\"tt-form\"><span class=\"ez-toc-section\" id=\"SEND_CONSULTATION_REQUEST\"><\/span>SEND CONSULTATION REQUEST\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><label>Full name<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"full-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"full-name\" \/><\/span><br \/>\n<label>Email<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"email\" name=\"email\" \/><\/span><br \/>\n<label>Phone Number<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-text wpcf7-validates-as-tel\" aria-invalid=\"false\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<label>Message<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"coment\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" aria-invalid=\"false\" name=\"coment\"><\/textarea><\/span><br \/>\n<input class=\"wpcf7-form-control wpcf7-submit has-spinner btn-yellow\" type=\"submit\" value=\"Send\" \/>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>In today&#8217;s era of globalization, Vietnam is becoming an attractive destination for foreign investors. The outstanding development of the economy and policy reform have created a favorable environment for investors from all over the world to flock to our country. In this context, the insurance industry is not an exception. Insurance, an important field in&#8230;<\/p>\n","protected":false},"author":4,"featured_media":4393,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[],"class_list":["post-5836","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/5836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/comments?post=5836"}],"version-history":[{"count":0,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/5836\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/4393"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=5836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=5836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=5836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}