SINGAPORE, Oct 31 (Bernama-BUSINESS WIRE) — AM Best is maintaining its stable market segment outlook on Vietnam’s non-life insurance segment, citing market growth underpinned by economic tailwinds, regulatory developments expected to help drive growth and climbing domestic interest rates that should benefit investment income.
In a new Best’s Market Segment Report, “Market Segment Outlook: Vietnam Non-Life Insurance,” AM Best notes that non-life insurance premiums recovered strongly over the first half of 2022 with year-over-year growth of 13.6%, according to market statistics. Prospective growth is likely to be supported by structural economic tailwinds that will continue to benefit the economy. Also, Vietnam could benefit from “friendshoring,” a recent trend whereby firms look to mitigate supply chain risks by diversifying part of their raw material sources, manufacturing or logistical capabilities to countries with shared values.