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Bao Viet Holdings makes debut in Ha Noi

Update: January, 23/2008 - 00:00

Bao Viet Holdings makes debut in Ha Noi

(24-01-2008)

A Bao Viet Holdings stall at a banking, financial and insurance exhibition last year. — VNA/VNS Photo Tran Viet

HA NOI — Viet Nam’s leading insurance company announced the official completion of its conversion into a financial and insurance group yesterday.

After 43 years of operations, the Viet Nam Insurance Corporation (Bao Viet) becomes Bao Viet Holdings, boasting more than 120 subsidiaries specialising in life insurance, non-life insurance, financial investment, securities and banking.

The group’s debut yesterday marked an important turning point in the establishment and development of Bao Viet, chairman of the Bao Viet Holdings’ Management Board Le Quang Binh said at the announcement ceremony.

"From a company of 16 staff and VND10 million in charter capital supplying insurance services for only imports and exports, Bao Viet, established in 1965, has developed to become a group with charter capital of VND5.73 trillion (US$358 million)," he said.

After the conversion, the group will focus on building a corporate governance scheme in line with international standards, diversifying financial and insurance products and services and investing in information technology.

As an initial step to realise these targets, the group yesterday signed two comprehensive co-operation agreements on securities and technology with the HCM City Stock Exchange (HOSE) and Hewlett Packard (HP).

Under the agreement with HP, the company pledged to give the group advice on building efficient IT infrastructure capable of satisfying the group’s business demands.

Yesterday the Bao Viet also announced that the State Bank of Viet Nam has agreed in principal to the establishment of the Bao Viet Commercial Joint Stock Bank, of which the group holds 40 per cent of charter capital.

The bank is expected to come into operation by the second quarter of this year, Binh said.

Speaking at the ceremony, Minister of Finance Vu Van Ninh praised Bao Viet’s contributions to the development of the country’s economy, especially in the insurance market.

He asked the group to quickly stabilise the structure of its organisation so it could continue developing its key businesses as well as expand new operations.

Bao Viet Holdings’ two strategic partners are the Viet Nam Shipbulding Industry Group (Vinashin) and HSBC Insurance Asia Pacific who own 3.56 and 10 per cent of the group’s charter capital respectively.

Asia Pacific Regional Head of Insurance for HSBC David Fried said the Hong Kong-based bank would continue supporting Bao Viet in various fields to help it maintain its position in the insurance market.

"Bao Viet is the best partner in Viet Nam that we have ever sought and co-operated with," he said.

Last year, the group generated a turnover of VND7.8 trillion ($489 million), representing an yearly increase of 13.5 per cent. By 2010, the group targets a revenue of VND12.9 trillion ($809 million) and a profit of VND1.5 trillion ($95 million). — VNS

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