“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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