PVI: World-class Brand

PetroVietnam Insurance Joint Stock Corporation (PVI) reported VND4,000 billion of revenues in the first 10 months of 2010, which goes beyond expectations for the leading nonlife insurer in Vietnam. It has been growing into a leading insurer in the country.

The period from 2009 to 2010 tested PVI’s growth and development. During this period, competition on the insurance market was very fierce. Some new insurance companies wanted to make advances in the context of the economic downturn by applying unfair and unhealthy tricks like offering premiums lower than base costs to expand their business, thus reducing the effectiveness of insurance business.

 

However, anticipating those difficulties soon enough to adopt consistent effective measures, PVI achieved strong growth in 2009 with revenue of VND3,566 billion, representing a year on year rise of 32.3 % and surpassing the target set by PetroVietnam Group by 19 %, while bagging profit of VND195 billion, up 47 %. 2010 is expected to be another successful year for PVI because it has not only asserted its footing in Vietnam but also expanded to the world market, bringing the Vietnamese trademark to the international arena and bringing globally recognition.

 

To achieve these successes, PVI’s leaders analysed strengths, weaknesses, opportunities, and threats, and adopted measures to sustain growth and improve business performance. Most importantly, PVI’s leaders created a well-timed development orientation specifically for this tough time. This was a lodestar for all the corporation’s operations in Vietnam and on global markets. PVI is now the largest insurer by market value and is powered by capable, energetic and enthusiastic staff, who are very experienced in insurance deals in Vietnam and in the world. This is the source of PVI’s success to date and the foundation for its future sustainable development.

As a leading industrial insurer on the Vietnamese nonlife insurance market, PVI not only insures vital oil and gas projects, but also ensures national energy security and contributes to national industrialisation and modernisation. PVI is trusted by its customers and partners for its premium products like industrial insurance, energy insurance, technical insurance and marine insurance. Besides, PVI has expanded into the retail insurance market and achieved very positive results in motor vehicle insurance, personal insurance, fire insurance, etc. With the efforts of the entire company, from leaders to employees, PVI has become the No. 1 nonlife insurer in Vietnam, with a 24 % market share in the first six months of 2010.

 

Under the spirit of “dare to think, dare to do and dare to assume responsibility,” on the basis of knowledge and with the constant determination of the leaders, PVI has created exceptional advantages by penetrating global markets, especially after A.M. assigned a good financial strength rating to the company. This is considered a “passport” for the company to enter the international insurance market and the most persuasive evidence to the business capacity and financial strength of the company.

 

In the coming time, PVI will focus on implementing measures to edge up competitiveness to increase the probability of success in international market penetration. Specifically, the corporation completes the operating model, develops human resources to enhance professionalism and service quality to better serve customers, launches new products, applies information technology to corporate governance; and continues building its brand, corporate culture and customer service.

 

In a talk with ViB Forum, a PVI leader said in the context of international integration and globalisation, PVI has identified two main objectives. “We must erect two flags: a flag in Vietnam and a Vietnamese flag in the world,” he noted. “However, to support the flag in the world, we must hold onto the first flag in Vietnam. We have defined a strategic position for PVI and thought of globalising the PVI trademark by providing professional insurance services to customers outside Vietnam.”

 

Currently, PVI is providing insurance services in countries where Vietnam National Oil and Gas Group (PetroVietnam) operates, including Venezuela, Algeria and Iraq. To provide insurance services in these countries, PVI had to compete with many international insurance companies.

 

As Vietnam integrates with the world, Vietnamese companies will have more business opportunities. They can expand their international presence, approach and receive human resources and materials from developed nations. Importantly, Vietnam is gives and receives equal treatment with other WTO members, helping strengthen its position in international relations, particularly in resolving international trade disputes. For this reason, we can have full confidence in the sustainability of PVI when it raises the second flag on the world market after it has built a solid foundation in the domestic market.