After the world economic crisis in recent years, tight monetary policy in 2011 has helped Vietnam to stop inflation but caused aggregate demand to weaken. The economy fell into stagnation characterized as inventory increases, the growth rate of industrial production slow and some businesses closed are on the rise.
According to the Ministry of Planning and Investment, over 50,000 businesses have gone into bankruptcy in early 2011 to the end of quarter 1/2012. Large losses in Vinalines, Vinashin, EVN, Vietnam Cement Corporation VICEM, Song Da Corporation, TKV ... somehow make it easier for the Vietnamese economy sinking into stagnation condition than ever before.
Global economic slowdown led to foreign investment flows into Vietnam show signs of decline. Attract foreign investment from the beginning of 2012 to 04/20/2012 only 68.5% compared to the same period last year, which is down 0.3% compared to the same period last year.
Trinh Thanh Hoan, Director of Insurance Management and Supervision Department of Finance, commented that: the financial crisis affecting the insurance industry in Vietnam, but not heavy. Vietnam's insurance industry is one of the few lucky industries has overcome the crisis.
Revenue growth rate of the insurance industry first 6 months of 2012 has reached a relative situation, though not as high as in 2011. Original insurance exploitation activities increased by 11% compared to the same period in 2011, of which 13.5% non-life sector, life insurance increased by 8.4%.
In this context, the Prudential - with revenue of VND 2,182 billion, accounting for 39.69% of the market array of life insurance market in Vietnam is facing great opportunities to promote their competitiveness
The study of the financial situation in 2011 by Prudential in conjunction with specifying the challenges they are facing in 2012