The first US life insurrance company in Vietnam

American International Assurance (AIA) has made new inroads into Viet Nam's emerging life insurance market, inaugurating a fully-fledged subsidiary to step up AIA's operations nationwide.

AIA Viet Nam, the first life insurance business formed by a US company in the country, is headquartered in Ho Chi Minh City but will also run an office in Ha Noi.

Using around 1,000 agents, AIA will market innovative life insurance products such as endowment policies, education plans, life insurance, yearly renewable term cover, accidental death benefit and premium waivers.

The policies will be designed to meet the needs of the local market, a company spokesman said.

The AIA subsidary is moving into a Vietnamese insurance marketplace. Competition is hot among entrenched players, such as the State-run Bao Viet, the UK's Prudential, Taiwanese-Canadian joint venture Chinfon-Manulife, and the Australia-Viet Nam joint venture Bao Minh CMG.

Bao Viet is currently the number-one player in the life insurance sector, with Prudential in second place and Chinfon-Manulife and Bao Binh CMG jostling for third place