Manulife Vietnam Seeks Fund Management License

Manulife Vietnam Seeks Fund Management License

Wholly Canadian-owned Manulife Vietnam has filed an application to Vietnam’s State Securities Commission (SSC) to set up a fund management company in the fast-growing country.

According to the request, the Canadian life insurance company will establish a fund management firm with total investment of VND5 billion (US$318,500) in Ho Chi Minh City.

Currently, SSC has asked Manulife Vietnam to supplement some documents and information as required by prevailing regulations on securities and securities market.

If the petition is approved Manulife will become the second life insurer to set up fund management company in Vietnam after UK’s Prudential.

At the end of 2004, the UK-based insurance giant Prudential received a licence from Vietnam’s Ministry of Finance (MoF) to expand financial investment operation in the fast-growing economy. It is carrying out necessary procedures for the establishment of an investment fund management company in the country

In 2004, Vietnam Life Insurance Company held 38.5 per cent life insurance market share in Vietnam, followed by UK-based Prudential (37.6 per cent), Manulife (12.2 per cent) and AIA (8.77 per cent). The respective figures in 2003 were 41.5 per cent, 38 per cent, 5.8 per cent and 2 per cent.

As at the end of September 2004, Prudential Vietnam has re-invested VND5 trillion (US$318.5 million) in the local economy, mainly into State Treasury bills, up 25 per cent against the figure reached at the end of 2003. Manulife’s figure was not announced.

Vietnam's total life insurance premiums were VND8 trillion (US$509.6 million) in 2004, up 20 per cent on-year.

• (Vietnam Economic Times)