Insurance industry will wipe out unfair practices
Vietnam News, Wednesday January 28, 2004
HANOI -- Vietnam will stamp out unfair practices to ensure a level playing field for all insurance companies, a Government deputy minister has promised.
Deputy Minister of Finance Le Thi Bang Tam assured that insurance companies all have an equal right to exploit the market provided they offered good service.
In the event, Tam said, her ministry would crack down on insurers and others found taking recourse to these unhealthy practices to influence the market.
WTO ramifications
Tam said that the Government would continue to develop the insurance market this year.
However, she warned of the imminent challenges ahead of the industry with Vietnam likely to become a WTO member by 2005.
The Government would then further open the industry's doors to the domestic, foreign and private sectors, she said. If domestic players, especially in the State sector, were slowfooted, they may lose out, she warned.
"The State will not interfere in the working of its insurance companies. For instance, the ministry has decided to give full administrative autonomy to the Vietnam Insurnace Corporation (Bao Viet)," she said.
Pointing to the Government's GDP growth target of 8 per cent, she said it provided and opportunity for the insurance industry.
Besides, the finance ministry plans to assist the industry develop certain insurance products - covering exports, deep-sea fishing and construction.
"All documents for the purpose will be based on equal competitiveness in the insurance sector," Tam assured.
Vietnam's industry consists of 24 State-owned, joint stocks, joint venture and foreign companies whose revenues grow by 29 per cent annually and - at about VND10.1 trillion (US$651 million) in 2003 - account for 1.5 per cent of GDP. VNS
