Divestment from insurance sectors by State-owned Enterprises

Earlier this month, the Prime Minister approved the restructuring plan for securities and insurance sectors in Decision 1826/2012. According to Decision 1826/2012, all State-owned or State-controlled enterprises including commercial banks are required to divest from insurance companies. In particular, these SOEs are required to reduce their ownership interest in insurance companies to less than 20% charter capital of the relevant insurance companies by 2015. Currently, there are several insurance companies controlled by SOEs including PetroVietnam Insurance Company, Post Telecom Insurance Company, Vietnam Airline Insurance Company, BIDV Insurance Company, Vietinbank Insurance Company, AgriBank Insurance Company, and Petrolimex Insurance Company. If Decision 1826/2012 is implemented in practice then one could expect an increased number of deals regarding insurance companies in the next couple of years.