Data of Life and Non-Life Insurance Companies in 2005.

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Fast product with 100,000 life insurance agents, 50,000 non-life insurance agents to promote the introduction of insurance companies and insurance products, providing insurance products to consumers.

The financial capacity of insurance companies has been significantly improved. 90% of insurance companies have equity capital many times higher than their legal capital. Reserve funds, total assets and investments in the economy have increased rapidly, always ensuring the solvency of insurance companies.

Table 1: Data of life and non-life insurance companies in 2005.

(Unit: Billion VND)

Block

Number

quantity

Capital

Regulations

4,945

4,380

Equity

have

3,689

3,150

Reserve fund

room

4,078

24,484

CEO

product

9,090

30,388

Invest in

economy

5,943

25,533

Non-life

Life

Add

9,325

6,840

28,563

39,478

31,476

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(The above figures do not include insurance brokerage companies)

Currently, in a total population of over 82 million people, Vietnam has more than 6.5 million people buying life insurance, 15 million people participating in student insurance, 5 million people buying personal insurance and about 5 million people buying civil liability insurance for motor vehicle owners... According to the assessment of insurance businesses, the market is still expanding in the next few years, so many companies plan to invest more. The total equity of insurance companies has now reached VND 8,110 billion. All have charter capital higher than legal capital, of which Bao Viet VND 1,500 billion, Prudential

75 million USD…

Vietnam's insurance market has a high growth rate of 20%/year, basically ensuring the need for risk protection, an economic shield for the socio-economy and very attractive to foreign financial investors operating insurance in Vietnam. The estimated premium revenue in 2006 for life insurance was 8,500 billion VND, non-life insurance was 6,500 billion VND, compensation and insurance payments were estimated at 7,500 billion VND. In the first quarter of 2007, non-life insurance exploited 250,661 new contracts (including

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120,034 main product contracts) increased by 13% compared to the same period in 2006. The above results brought the total number of effective contracts by the end of the first quarter of 2007 to 6,836,656, an increase of 1.04% compared to 2006.

2.2.2. Current status of the banking industry

According to the scope of commitment subjects in the Banking sector, the author will mainly refer to commercial banks.

a) Overview of the commercial banking system

In terms of quantity, the current Vietnamese commercial banking system includes 4 state-owned commercial banks, 1 policy bank, 1 development bank, 37 joint-stock commercial banks, accounting for 63.9% of the total number of commercial banks operating in Vietnam. Domestic commercial banks currently hold nearly 90% of the market share (both deposits and loans), of which state-owned commercial banks alone account for 70%. Foreign banks (currently including 4 joint-venture banks, 28 foreign bank branches, 43 representative offices) account for less than 10% of the market share.

The Vietnamese commercial banking system has a wide network of branches in provinces and cities across the country. This is a favorable condition for banks to increase their ability to mobilize capital and expand credit in potential areas. For example, the Bank for Agriculture and Rural Development has up to 1,611 branches nationwide and has over 450 correspondent banks; the Foreign Trade Bank has 25 level I branches and 23 level II branches, and has correspondent relationships with over 1,200 banks in 85 countries; the Industrial and Commercial Bank has 106 level I and II branches, 160 transaction offices, 358 savings funds, and has correspondent relationships with 430 banks; the Investment and Development Bank has over 102 branches and relationships with 565 banks. State-owned commercial banks alone have 309 level I branches; Joint stock commercial banks are also present in most major centers of the country with each bank having an average of 20-30 branches...

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In terms of market share, Vietnamese commercial banks hold the largest market share in both capital mobilization and capital mobilization.

capital and loans. The main customers of Vietnamese commercial banks are large enterprises and corporations.

Table 2: Market share of deposit mobilization of Vietnam's commercial banking system

(Unit: %)

Year

2000	2001	2002	2003	2004
State Commercial Bank	77	80.1	79.3	78.1	75.2
Joint Stock Commercial Bank	11.3	9.2	10.1	11.2	13.2
Joint venture commercial bank	1.1	1.2	1.3	1.5	1.5
Foreign Bank Branch	9.2	8.8	8.1	7.8	8.2

(Source: State Bank of Vietnam)

Table 3: Lending market share of Vietnam's commercial banking system

(Unit: %)

Year

2000	2001	2002	2003	2004
State Commercial Bank	76.7	79	79.9	78.6	76.9
Joint Stock Commercial Bank	9.2	9.3	9.5	10.8	11.6
Joint venture commercial bank	1	1	1.1	1.2	1.2
Foreign Bank Branch	11.3	9.5	7.7	7.7	8.3

(Source: State Bank of Vietnam)

2.2.3 Current status of the Securities industry

a) Overview of Vietnam's stock market

- About market activities:

+ Regarding the listed market: As of December 31, 2006, according to statistics from the Ministry of Finance of Vietnam, there were 193 companies listed / registered for trading on the stock exchange (107 companies listed on the Ho Chi Minh City Stock Exchange (HoSTC) and 86 companies listed on the Hanoi Stock Exchange (HaSTC) compared to 41 companies at the end of 2005).

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+ Total value of listed shares calculated at market price is 221,156 billion VND

(equivalent to 14 billion USD) accounted for 22.7% of GDP in 2006 (20 times higher than in 2005),

24.4 billion USD in the first quarter of 2007 (accounting for about 40% of GDP), the value of shares held by foreign investors reached about 4 billion USD, accounting for 16.4% of the total market capitalization. The size of the stock market increased rapidly due to the number of shares traded increasing nearly 8 times and the size of listed companies, registered trading and stock prices increasing (2.5 times).

In 2006 and the first quarter of 2007, the Vietnamese stock market had remarkable development, the Vn-Index

The index at the Ho Chi Minh City Stock Exchange (Hostc) increased 144% in 2006 and 40% in the quarter.

I/2007, at Hanoi Stock Exchange (Hastc) increased 152.4% and 41% in the first quarter of 2007.

+ Regarding investors: As of December 31, 2006, the number of trading accounts opened by investors at securities companies was over 100,000 (3 times higher than in 2005 and 30 times higher than when the market first opened). This number has increased to 158,376 trading accounts by the end of March 2007 and is expected to increase 3-4 times by 2010. Of which, 1.87% (1,870 n accounts) and 25-30% of the number of listed shares are held by foreign investors, including a number of international securities investors such as JP Morgan, Merry Lynch, City Group.

Regarding institutional investors, there are currently 35 investment funds, including 23 foreign investment funds with investment capital of 2.3 billion USD and 12 domestic investment funds. In addition, there are nearly 50 organizations investing in the form of trust through securities companies.

+ Initial formation of capital mobilization channel for the economy: In 2006, 27 listed enterprises mobilized over 1,300 billion VND through the stock market, 15 joint stock companies registered with the State Securities Commission to issue 250 billion VND of equity capital to the public. Banks and corporations increased the issuance of bonds. Typically, the Bank for Foreign Trade of Vietnam (VCB) and the Bank for Investment and Development (BIDV) issued 3,350 billion VND of bonds; Vietnam Electricity Corporation (EVN): 2,600 billion VND; Saigon Securities Company (SSI): 500 billion VND of convertible bonds.

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By December 2006, the stock exchange had held 17 auctions.

Price, sold more than 645 million shares, reaching 84% of the total offering, earning 12,880 billion VND.

- The system of intermediary organizations: The stock market has been formed and developed rapidly. Currently, there are 55 securities companies operating or licensed to operate, 3 companies have traded stocks on the stock exchange, 35 investment funds (23 foreign investment funds and 12 domestic investment funds), 18 fund management companies, 41 organizations participating in securities depository activities, nearly 50 organizations investing in the form of trust through securities companies, 6 depository banks (2 domestic banks, 4 foreign banks), 8 independent auditing companies... The financial capacity of securities companies has gradually been improved, the average charter capital reached 77 billion VND/company, an increase of 26% compared to 2005.

- Legal framework for the operation and development of the stock market : The legal framework is being gradually improved. The Securities Law, effective from January 1, 2007, has contributed to promoting market development and enhancing the ability to integrate into the international financial market. The publicity and transparency of listed organizations are enhanced.

- Along with the centralized market, trading of shares of about 6,700 joint stock companies is carried out on the decentralized market, every day there are about 80-100 companies with shares traded, these are shares issued mainly under the Enterprise Law. On the decentralized market, the total trading volume is about 6 times higher than the trading volume on Hostc.

Building and developing the stock market is an inevitable trend of the international economic integration process. Vietnam cannot be separated from that trend. The formation and development of the stock market will, together with the monetary market, create a more effectively operating financial market, contributing effectively to the cause of industrialization and modernization of the country. Some forecasts made before Vietnam joined the WTO, the value of the Vietnamese stock market will have a strong breakthrough, accounting for 20-30% of Vietnam's GDP in the next 5 years instead of only about 6% as at present.

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