According to the World Bank (WB), thanks to microfinance institutions in particular and small-scale credit institutions in general, the rate of the poor in Vietnam has dropped significantly, from about 60 percent in the 1990s to 4.5 percent in 2015. Fundamental development of microfinance institutions The State Bank of Vietnam (SBV) issued Circular 03/2018/TT-NHNN on licensing, organization and operations of microfinance institutions. The issuance of an appropriate legal basis will create a mechanism to promote the development of microfinance institutions, and set out strict solutions to operate microfinance institutions in accordance with the law, contributing to ensuring the interests of depositors, and stabilizing the finance-banking system. Fundamental development of microfinance institutions is also a target set out in the program on building and development of a microfinance system in Vietnam through 2020 approved by the prime minister according to Decision 2195/QD-TTg. However, … [Read more...] about Deposit insurance policy implementation in microfinance institutions
Insurance
Businesses puzzle over social insurance for foreign workers
Nippon Express Joint Venture Company in Tan Binh district, HCMC is using many foreign workers. Of them, department managers are Japanese who have been sent by the parent company to work in Vietnam in 3-5 years terms under job rotation. These managers have been provided social insurance, health insurance and unemployment insurance in Japan according to the country’s regulations. So the company has puzzled over paying social insurance for these workers in Vietnam. If the company does not have to pay, what kinds of papers it must present and whether these papers are translated and notarized or not? In addition, the company has recruited some other Japanese workers in Vietnam and they have work permits as per regulations so how about social insurance payment for them? If the compulsory social insurance policy takes effect to old foreign workers (62 years old)? Meantime Line Vietnam Company in District 1 said that the company is joint venture with foreign partner. The director of … [Read more...] about Businesses puzzle over social insurance for foreign workers
Insurer Hanwha donates clinic to Tra Vinh Province
Representatives of Hanwha Life Vietnam and ChildFund Organisation of Korea and Action Aid and local authorities inaugurate the clinic donated by the three. VNS Photo Viet Nam News HCM CITY — South Korean insurer Hanwha Life and charity ChildFund Organisation and global charity Action Aid have donated a medical clinic to Ward 9 in the Cuu Long (Mekong) Delta province of Trà Vinh. The clinic, which cost VNĐ2.4 billion (US$105,000). This is the fourth health clinic the insurer has donated to poorer provinces after one to Bắc Kạn last year and two to Hòa Bình in 2015 and 2016. Hanwha, which came to Việt Nam in 2009, has nearly 250 employees, more than 40,000 financial agents and 120 customer service centres across the country. It has donated more than VNĐ22 billion ($964,000) for many community projects. VNS … [Read more...] about Insurer Hanwha donates clinic to Tra Vinh Province
Usagi storm a game changer in insurance business
The huge number of motorbikes damaged by storm Usagi in Ho Chi Minh City last week is seen as a great opportunity for insurance firms to fill a gaping hole in the market by developing motorbike insurance policies. A huge number of motorbikes were damaged by storm Usagi in Ho Chi Minh City last week For days after the floods from storm Usagi, motorbike repair shops across the city have been overloaded. While compulsory motorbike insurance only offers compensation if drivers get in accidents, only a few locals purchased physical insurance covering fire and flood damage. According to the latest statistics of the Vietnam Association of Motorbike Manufacturers (VAMM), the total number of motorbikes in Vietnam hit 52 million. However, only one per cent of motorbike users buy extra motorbike insurance, according to Liberty Insurance Vietnam Limited Company. The little interest in motorbike insurance is also the main reason behind people having to pay VND700,000-1 million … [Read more...] about Usagi storm a game changer in insurance business
Deposit insurance law facilitates depositor safety
Assoc. Dr. Nguyen Thi Mui, a member of the National Financial and Monetary Policy Advisory Council said deposit insurers play a very important role in ensuring the stability of socioeconomic development, as they protect the interests of depositors, ensure the safety and security of banking activities and address financial crises, if any. The role of deposit insurers has been raised since the Law on Deposit Insurance came into effect in 2013. Apart from inheriting previous proper regulations, the deposit insurance policies have institutionalized the views, guidelines and policies of the communist party and the state, showing the specifications of the credit institution system in Vietnam. While it offers specific provisions on the insured (including the rights and obligations of the insured), limits of amounts payable to depositors, and time of premium payments, among other regulations, the deposit insurance law reflects the state’s strong commitment to ensuring deposit safety when … [Read more...] about Deposit insurance law facilitates depositor safety