Non-life insurance premiums spike in H1

– Non-life insurance premiums rose sharply during the first half of the year, recording a year-on-year increase of 41 percent, according of the Ministry of Finance.

With the growth rate, the industry gained total premiums of nearly 5.5 trillion VND (333 million USD), the ministry said.

Of the total, Bao Viet Insurance made up 1.68 trillion VND (101 million USD), up 50 percent over the same period last year. PVI followed with 1.1 trillion VND, up 6.5 percent. Bao Minh and Pjico also contributed more than 1 trillion VND and 520 billion VND, an increase of 23.6 and 44 percent, respectively.

Vietnamese insurers have continued to dominate the domestic market over their foreign counterparts. Bao Viet currently accounts for 35 percent of the country’s total market share, and figures for Bao Minh, PVI and Pjico are 21,18 and 10.5 percent, respectively.

With such growth, PVI has achieved profits of more than 100.8 billion VND in the first six months of the year, while Bao Viet and Bao Minh reported profits of 60 billion VND and 72.7 billion VND, respectively.

Vietnam ’s life and non-life insurance segments are expected to continue their high annual rates of growth.

The Vietnam Insurance Association expected non-life insurance to achieve a growth rate of 30 percent in 2008.

Last year, the non-life insurance sector recorded the highest growth rate in the past five years, with total revenues of nearly 8.5 trillion (531.25 million USD) reported the association.

Vietnam currently has 23 insurers, including nine life insurance, one reinsurance, and eight brokerage companies. These firms have invested more than 40 trillion VND (2.5 billion USD) in the local economy.-

Petrol prices, loose trading band aid VN-Index

– Share prices soared on both Hanoi and HCM City markets on August 15 following Thursday’s news that petrol prices had been cut – and that the daily trading band had been loosened.

Huge purchases way exceeded sales, pushing the VN-Index up 12.44 points or 2.61 percent, to close at 488.94. Trading volume reached 10.4 million shares worth 383.7 billion VND (23.25 million USD).

The HCM City stcock exchange had 157 gainers and only three losers by days’ end.

Shares in banking and finance areas were in demand. Sacombank (STB) share purchases exceeded sales by 4.3 million, Saigon Securities Inc (SSI) traded 1.3 million shares and Asia Commercial Bank (ACB) nearly two million units.

The Ministry of Finance cut pump petrol prices by 1,000 VND a litre help ease pressure on production and business activities.

Meanwhile, securities regulators are taking steps to improve market liquidity On Thursday the State Securities Commission loosened the daily trading band to 5 percent on the HCM City market and 7 percent in Hanoi . The bands are now 3 percent and 4 percent, respectively.

Following the news, money in investors’ accounts at Tan Viet Securities grew sixfold.

The market was also boosted by HSBC raising its stake in the Technological and Commercial Bank of Vietnam (Techcombank) from 15 percent to 20 percent.

The expansion was approved by the Government on July 20 and announced by the State Bank on Tuesday.

Foreign investors on August 15 sold 2.27 million shares and bought 1.67 million. Net sales value reached 24.55 billion VND (1.48 million USD).

On the Hanoi bourse, the HaSTC-Index leapt 5.08 points, or 3.47 percent, to end at 151.65. More than three million shares worth 116 billion VND (7 million USD) were traded.-

Foreign real estate brokers practise in VN

– Foreign real estate brokers with valid licences granted by foreign agencies will be permitted to practise in Vietnam , the Construction Ministry has said.

These licences must be translated into Vietnamese, notarised or certified in accordance with Vietnamese laws, and sent to local agencies in charge of managing real estate business activities, the ministry added.

The Ministry of Construction will issue specific regulations on granting real estate brokerage and appraisal certificates to foreign individuals in the near future.

The present Law on Real Estate Business does not require educational and professional qualifications from individuals applying for real estate brokerage certificates.-

Non-life insurance premiums spike in H1

– Non-life insurance premiums rose sharply during the first half of the year, recording a year-on-year increase of 41 percent, according of the Ministry of Finance.

With the growth rate, the industry gained total premiums of nearly 5.5 trillion VND (333 million USD), the ministry said.

Of the total, Bao Viet Insurance made up 1.68 trillion VND (101 million USD), up 50 percent over the same period last year. PVI followed with 1.1 trillion VND, up 6.5 percent. Bao Minh and Pjico also contributed more than 1 trillion VND and 520 billion VND, an increase of 23.6 and 44 percent, respectively.

Vietnamese insurers have continued to dominate the domestic market over their foreign counterparts. Bao Viet currently accounts for 35 percent of the country’s total market share, and figures for Bao Minh, PVI and Pjico are 21,18 and 10.5 percent, respectively.

With such growth, PVI has achieved profits of more than 100.8 billion VND in the first six months of the year, while Bao Viet and Bao Minh reported profits of 60 billion VND and 72.7 billion VND, respectively.

Vietnam ’s life and non-life insurance segments are expected to continue their high annual rates of growth.

The Vietnam Insurance Association expected non-life insurance to achieve a growth rate of 30 percent in 2008.

Last year, the non-life insurance sector recorded the highest growth rate in the past five years, with total revenues of nearly 8.5 trillion (531.25 million USD) reported the association.
Vietnam currently has 23 insurers, including nine life insurance, one reinsurance, and eight brokerage companies. These firms have invested more than 40 trillion VND (2.5 billion USD) in the local economy.-

First foreign-owned milk company licenced

– Mead Johnson Nutritionals, a world leader in nutrition based in the US, became the first wholly foreign-owned milk company in Vietnam on August 15 after 10 years of operation as a representative office.

The new business licence was granted to Mead Johnson Vietnam Company Ltd by the HCM City People’s Committee.

General Manager of Mead Johnson Nutritionals, Mark Hely, said the new licence would allow the company to increase the scale of its operations in Vietnam to offer more products on the local market as well as better services and programmes for the community.

Recent statistics from ACNielsen show that Mead Johnson holds the biggest market share in the US paediatric formula market for four consecutive yeas up to 2007.-

Senior Party official urges boost of collective economy

Politburo member of the Communist Party of Vietnam Truong Tan Sang has called for concerted efforts to lift the collective economic sector out of current difficulties and weakness.

Sang, who doubles as permanent member of the CPV Secretariat, raised the concerns during his working session with the Vietnam Alliance of Cooperatives in Hanoi on August 18.

He called on relevant agencies to review the existing legal system so as to make adjustments and issue new policies to catch up with the new stage of development.

“The immediate task is to revise the Law on Cooperatives to make it suitable to the reality,” the senior Party official emphasised.

He also pointed out the need to boost training of key officials of cooperatives based on experiences drawn from the success of 42.5 percent of the existing cooperatives.

It was reported that in the first half of 2008, some 4,500 new cooperative groups and clubs were set up to operative in various fields, ranging from agriculture to aquaculture and handcrafts.

However, less than half of the total of almost 18,000 cooperatives make profits and a large number of them operate unorganised.

“The fact that farmers make little profits in bumper harvests and the catfish oversupply against demand leading to a sharp fall in prices was evidence of the problem,” Sang said.

“Renewal and development of the collective economic sector will not only ensure the sustainable development of the socialist-oriented market economy but also strengthen the national unity through the alliance of production and doing business and the sharing of responsibilities,” he explained.

The current cooperatives system, mostly operating in agriculture, has left millions of rural or poor urban families with tens of millions of working hands work on their own without any support, thus making their lives unstable, reported the Vietnam Alliance of Cooperatives.–

Quang Ngai province helps train Lao students

– Central Quang Ngai province will provide university training for 30 students from Laos ’ Champasak province.

Under a cooperation agreement between the two provinces, in the first phase of 2008-2009, the Lao students will learn Vietnamese language at the Pham Van Dong University.

In the second phase of 2009-2013, they will be trained in information technology, finance and banking at the Pham Van Dong University and electrical engineering at the central branch of the Ho Chi Minh City Industry University.

Quang Ngai province will cover all training and accommodation costs for the Lao students during the course.-

Regional law conference to open in HCM City

– The 2008 conference of Presidents of Law Associations (POLA) in Asia will be held in Ho Chi Minh City from Aug. 22-23, according to the Ho Chi Minh City Bar.

Deputy Director of the HCM City Bar Nguyen Van Trung said at a press conference on Aug. 15 that more than 80 foreign lawyers from Asian countries and four international law organisations and 40 Vietnamese lawyers will attend the event.

This will be the first time the HCM City Bar hosts a POLA conference, Trung said.-

Vietnam ready to help Benin develop agriculture

– Deputy Prime Minister and Foreign Minister Pham Gia Khiem has affirmed Vietnam’s willingness to increase cooperation in agriculture with African countries, including Benin .

Receiving Beninese Minister of Agriculture, Breeding and Fisheries Dovonou Roger in Hanoi on August 15, Khiem noted the positive development of the two countries’ relations since the Vietnam visit by Beninese President Boni Yayi in November 2006.

Vietnam is ready to share experiences in agricultural development with the black continent, including Benin, within its national plan of action on promoting Vietnam-Africa cooperation for the 2004-2010 period, he stressed.

Deputy PM Khiem welcomed the signing of a memorandum of understanding on agricultural cooperation between the two agriculture ministries during Minister Dovonou Roger’s Aug. 13-15 visit.

Earlier, the Beninese minister held talks with Vietnamese Minister of Agriculture and Rural Development Cao Duc Phat. They exchanged views on agricultural development in the two countries and discussed opportunities for the two countries’ agricultural cooperation.

The two sides reached consensus on bilateral cooperation in planning Benin’s Niger and Oueme valleys, including the sending of Vietnamese experts to Benin , varieties supply and training.-

NA sets up legislative research institute

National Assembly (NA) Chairman Nguyen Phu Trong has urged the NA Legislative Research Institute to soon adop work programs and cooperative with relevant agencies and institutions to encourage participation of foreign experts in law-making research in the country, thus improving the quality of operation of the NA Standing Committee.

The top legislator made the statement at the inauguration of the NA Legislative Research Institute in Hanoi on August 15.

The freshly-founded institute is entrusted to conduct research on NA structure and operations in service of its reform and promote the exercise of duties and powers of the top legislative body, its agencies and deputies.–