Vietnam’s non-life market has competitive outlook for 2017

Vietnam's general insurance market will remain competitive in 2017 as further rate reductions are expected over the year. A report by Aon Risk Solutions titled, "Asia Market Review 2017" reported the following findings: The health and benefit market is expected to yield further premium increases with 15-20% increases forecast. The impact of government initiatives to remove red tape, encourage investment and streamline the visa application process will support the construction and tourism sectors in 2017. With capital markets liberalised and barriers to investment removed, construction and infrastructure is likely to be a key focus area in 2017, with Japanese and Korean investment in power and infrastructure expected. The aftershocks of a US withdrawal from the proposed Trans-Pacific Partnership trade agreement will begin to show over the year. The geopolitical effects for Vietnam are thought to be larger than any economic fallout, which will be shielded by the number of other established trade partnerships in the region which Vietnam is part of. 2016 saw Vietnam’s new government administration unveil some of its new economic and financial policies, included an uplift in infrastructure spending as well as measures designed to encourage foreign direct investment and boost tourism.