As Vietnam seeks new resources to boost GDP growth, develop infrastructure and pursue sustainable pathways, tens of billions of dollars in capital from the insurance sector remain untapped despite their potential to become an economic pillar Unlocking long-term insurance capital Vietnam currently keeps around 38% of life insurance assets in cash deposits. This money sits in banks instead of being channeled into long-term national development. The situation contrasts sharply with many other markets, where cash makes up only a small part of insurers’ investment portfolios. “Their portfolios are diversified across sectors that directly support national development,” said Kevin Kwon, CEO of Prudential Vietnam, at the UK–Vietnam Business Summit 2025 on November 5. With its long-term nature, insurance capital typically supports national development priorities in many forms. According to Prudential’s September 2025 report “Beyond Coverage: The Social and Economic Impact of Insurance in ASEAN,” this capital can become a major growth engine—not just a financial buffer against unexpected risks. A survey of non-life (including health) and life insurance coverage across six ASEAN markets, including Vietnam, estimates that if non-life coverage expands by 50% by 2050, per capita GDP could rise by 3.1% and total GDP by 2.6%. For life insurance, the […]
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