Socialist Republic of Vietnam

June 2 - 8, 2003 - VIR

FRANCE’S Gras Savoye has become the first foreign insurance broker to be granted an operating licence in Vietnam.

The licence was officially granted by the Ministry of Finance last week.

There are at least two other foreign brokers waiting to join the market: US firm Marsh and Britain’s Jardines. Foreign brokers had said the authorities seemed to be cautious about allowing them into the market.

The ministry is also considering granting licences to three joint-stock brokerages run by Vietnamese nationals.

Gras Savoye general director Antoine Bourbon told Vietnam Investment Review his company was: “Totally independent. We also have no shareholding with other companies, meaning we alone decide what is best for our client.”

Another French company, agricultural insurer Groupama, last year became the first foreign company to be granted a licence in Vietnam’s non-life insurance market. Gras Savoye is the world’s third largest brokerage and France’s biggest. It has had representative offices in Hanoi and Ho Chi Minh City since 1993.

Three insurance brokers operate in Vietnam: Gras Savoye, Aon Inchibrok and Viet Quoc.

Aon Inchibrok was initially a joint venture between state-owned insurance giant BaoViet and Hong Kong broker Inchcape that was licensed in 1994.

The American Aon later purchased Inchcape’s stake. Aon was the first foreign-invested brokerage to be granted a Vietnamese licence, but is now less active in exploiting Vietnamese enterprises.

Bourbon said the licence would give his company many advantages in Vietnam’s fledgling insurance market.

“There is no doubt that our next opening in Vietnam will pull the insurance market up by offering individual and company customers – both foreign and domestic – more comfort and protection in the negotiation and implementation of their insurance programmes.”

As the first and only foreign broker, Gras Savoye will have very few competitors with their own specially designed business development strategy.
“In Vietnam, Gras will focus on foreign direct investments and joint-ventures.

“But another very important potential client group is private enterprises as this sector is growing,” Bourbon said.

“The Ministry of Finance has also asked that we approach this group.”

Bourbon said Gras Savoye planned to boost its marketing campaign to capitalise on Vietnam’s burgeoning market.

“I believe that 90 per cent of the industry’s clients in the world have brokers while in Vietnam the percentage could be at least 75 per cent,” Bourbon said.
“We will focus on quality and security, not rush into the market if we are not able to introduce the best service,” he said.

“If we go too fast without good analyses we will fail.”

“It is quite hard here to find people with good experience in the brokerage sector and it is also difficult to convince Vietnamese clients that we are no danger to them. However, we believe that we can manage it all.”

Vietnam’s insurance laws allow Vietnamese nationals to set up private brokerage firms with more than three parties. (VIR)