16
Exchange. Additionally, the derivatives market
has been put into operation, creating favorable
conditions for both companies and investors and
showing positive changes from the authorities.
- The insurance market:
The size of the insurance
market is growing rapidly and reaching about
2% of GDP. In the period of 2012-2016, premium
income has more than doubled from VND 41,246
billion in 2012 to VND 86,049 billion in 2016,
while the premium income in 2017 reached
VND 105,611 billion. The total assets of the
entire insurance market by the end of 2017 was
estimated at VND 302,935 billion (increasing
by 23.44% compared to that in 2016), the total
investment in the economy was estimated at
VND 247,801 billion, (increasing by 26.74%
compared to that in 2016), the total premium
of the insurance market was estimated at VND
105,611 billion, (increasing by 21.20% compared
to that in 2016), the insurance reimbursement was
estimated at VND 29,423 billion. In addition, the
number of insurance companies also increased
rapidly meanwhile there was the improvement in
the size and quality of companies. By the end of
2017, the entire insurance market had 63 insurers
(including 29 non-life insurance companies, 18
life insurance companies, 14 insurance brokers
and 2 reinsurers) and 1 foreign owned non-life
insurance branch.
Thirdly,
the supply of goods has been expanded:
In the credit - banking market, along with the
process of innovation and integration, under
the competitive pressure from the appearance of
foreign banks, domestic commercial banks has
been forced to improve, diversify its products
and develop new banking services that enhance
customer convenience (such as increasing features
of personal accounts, developing card services,
developing services modern banking such as
phone banking, internet banking ...). On the stock
market, the number of listed companies increased
from 2 companies (in 2000, when Vietnam stock
market began) to nearly 700 companies. In
addition to the traditional securities products
such as stocks and bonds, the legal framework
for derivatives has been established since 2015
and this derivative market has officially come into
operation since August 10
th
, 2017, with the first
basic product is futures contract.
In the insurance market, voluntary retirement
insurance products were established and
developed in 2013. Up to now, there have been
six life insurance companies offering retirement
insurance products namely Manulife, AIA, Dai-
ichi, Sun Life, Bao Viet Life and Prudential. The
results in 2016 were estimated at 6,948 contracts
(accounting for 0.4% of new contracts).
Fourthly,
the regulatory framework for
inspection and supervision has been increasingly
improved and in line with international practice:
banking supervision has shifted from on-site
monitoring to remote monitoring (via the project
Developing the information system to support
remote monitoring in 2010), remote monitoring
has come much together with direct inspection in
order to ensure continuous and regularmonitoring
over the credit institutions. The monitoring is not
to simply work on compliance monitoring but
has initially shifted to a risk-based monitoring
system for the operations of each bank as well as
the whole system (applying CAMELS standards,
Basel). In addition, the issuance and regular
updating of regulations on limits and safety ratios
in the operations of credit institutions has also
helped the banking sector to develop stably.
In the stock market, the monitoring
mechanism is being implemented at two levels,
with the assignment and coordination between
the supervisory level of the State Securities
Commission and the supervision levels of the
TABLE 1. VOLUME OF LISTED AND UNLISTED SECURITIES (AS OF 12/2017) (BILLIONS SECURITIES)
Time
Listed
Shares
Listed Gov’t
Bond
UPCoM ETF
Fund
Certificates
HoSE Bond
Total
Compared
to previous
period end
31/12/2015
53,08
7,53
5,06
0,038
0,086
65,8
31/12/2016
60,38
9,3
14,82
0,041
0,015
0,095
84,65
28,60%
29/12/2017
71,82
9,98
24,71
0,18
0,02
0,16
106,87
26,25%
Source: State Securieties Commition
