Foreign insurers rush to finish plan on setting up fund management arms

Massive plans on setting up the professional fund management companies are blossoming according to latest statements of leaders of foreign life insurance firms in Vietnam. A developing capital market like Vietnam has good opportunities for attracting real attention of life insurers with good financial strength.

A source from Prevoir said that the French group is working on a plan for establishing Previor Vietnam Fund Management Co to develop asset and investment management operations professionally to maximise investment efficiency from its ownership capital as well as increase actualised profits. The last phases of the plan have been finished.

With the vision that Vietnam is a highly potential market in future, ACE Life Vietnam also revealed a similar plan without concerning particular time. Another firm Cathay Life Vietnam seemed to be faster as sending the establishment application to Vietnam’s functional authorities already.

The title on establishment of fund management companies was mentioned as well by Takashi Fujii, CEO of Dai-ichi Life Vietnam. His firm is waiting for a convenient time to promote the plan. According to Vietnam’s WTO commitment roadmap, insurance companies are allowed to set up 100 percent foreign invested fund management firms in Vietnam from Q2 of 2010.

“This time fund management joint ventures can be established. In fact, some fund managers are calling for Dai-ichi Life Vietnam’s capital contribution of up to 49 percent. I also am considering this invitation, but why do we accept when we will have our own fund management firm in one year?” Takashi Fujii shared.

Philip Hampden-Smith, Manulife’s Executive vice President and general manager for South East Asian Operations told Dau Tu Chung Khoan newspaper that being as an insurer, Manulife has to invest the money source raised from customers effectively to realise our responsibilities signed with customers. Investment of Manulife appears in entire Asia as well as Vietnam.

“Manulife has MFC global finance management arm. We believe that this is only the first step showing our expectation to contribute to the development of Vietnam’s capital market”, he confirmed.

Factually, in the financial crisis 1990 in Indonesia, Manulife Financial was the first enterprise restarting investment operations in Indonesia through buying G-bonds to help the country’s government re-build the economy. Indonesian capital market then recovered and supported the economy to overcome the serious economic troubles.

In Vietnam, Manulife is playing the significant role in the development of capital market as well as kinds of savings, Philip Hampden-Smith added.

Dau tu chung khoan

Tags: Vietnam insurance, Vietnam insurance industry, Vietnam insurance market