As Vietnam seeks sustainable growth, Prudential highlights how long-term capital and a stronger insurance sector can reinforce national economic resilience.

“What Vietnam needs today is not just growth, but an economy that is
transparent, well-governed, and capable of attracting long-term capital,” said Mr. Kevin Kwon, CEO of Prudential
Vietnam, at the Vietnam Future Economy Summit organized by Bloomberg
Businessweek. His remark highlighted a rising driver of Vietnam’s development:
long-term capital and the increasingly vital role of the insurance industry.

Insurance –
the ‘silent investor’ of the economy

Vietnam is entering a pivotal phase of
expansion, with positive signals across multiple indicators. In the third
quarter of 2025, GDP is estimated to have grown by 8.23 per cent, while foreign
direct investment reached its highest level in five years. Yet sustaining
long-term growth will require reinforcing economic resilience and broadening
stable capital flows, particularly amid persistent global uncertainty. Within
this context, insurance has emerged as a form of “soft infrastructure,”
connecting finance, social security, and development.

Long viewed as a safety net for individuals
and businesses, the insurance sector has increasingly become a major source of
long-term capital for the wider economy.

“As one of the big institutional investors in
Vietnam, we are not merely reinvesting capital but also acting as a catalyst
for sustainable growth. In the first quarter of 2025, the insurance sector
reinvested VND860 trillion into the economy, with Prudential contributing
nearly VND183 trillion. Our objective is not only to pursue growth but to help
build a more transparent, better-governed economy that attracts long-term
capital for Vietnam’s future,” Mr. Kwon said at the summit on November 14.

According to him, this capital extends far
beyond finance, flowing into infrastructure, healthcare, green energy,
education, and other priority sectors aligned with the government’s
Socio-Economic Development Strategy 2021–2030, which aims for a green, circular,
and balanced economy that harmonizes economic growth with social progress.

With its stability and long-term nature,
insurance capital strengthens the financial system, mitigates cyclical risks,
and supports sustainable growth – critical
pillars for Vietnam’s long-term development goals.

The
untapped potential of Vietnam’s insurance sector

According to “Beyond Coverage – The Social and
Economic Impact of Insurance in ASEAN,” a study released by Prudential in
September 2025, Vietnam’s insurance penetration currently stands at about 3 per
cent of GDP, well below the global average of 6.7 per cent. This gap signals
significant room for expansion.

The report estimates that a 50 per cent
increase in insurance coverage could raise GDP per capita by 4.1 per cent,
while a threefold increase could lift GDP by 17.4 per cent. These figures
underscore the insurance sector’s role in sustainable development: supporting
household resilience while channeling long-term capital into the economy.
Meanwhile, recent policy reforms are beginning to strengthen the institutional
framework needed for this transition.

In May 2025, Resolution No. 68-NQ/TW on
private sector development formally recognized private capital as “the most
important driver of the economy,” creating new opportunities for financial
institutions, including insurers, to take on a deeper role in national
development.

As Vietnam and the UK upgrade their
relationship to a Comprehensive Strategic Partnership, both sides have
reaffirmed their commitment to expanding cooperation, particularly in finance.

At the Vietnam Future Economy Summit, Mr. Kwon
outlined Prudential’s long-term vision: “Prudential is returning to its core
values: rebuilding trust and strengthening the foundation for the future. I
believe that when businesses do the right thing, they will attract stable
capital and create inclusive growth. With the long-term perspective of the life
insurance industry, we align with Vietnam’s national priorities and are ready
to contribute to strategic projects such as the International Financial Centers
in Ho Chi Minh City and Da Nang. Vietnam’s prosperity is also our success.”

For
more than 26 years, Prudential has been not only a pioneer in life insurance
but also one of Vietnam’s most important long-term investors. Through
future-oriented investment, financial literacy initiatives, and efforts to
build public trust, Prudential continues to support the sustainable development
goals pursued by the Vietnamese government.

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