Unlocking Vietnam’s Economic Potential: Prudential CEO Highlights the Power of Long-Term Capital

The Insurance Industry: Vietnam’s Silent Economic Powerhouse

Vietnam is entering a pivotal phase of growth, with its economy showing positive signals across multiple fronts. According to the General Statistics Office, Q3 2025 GDP grew by 8.23% year-on-year, while FDI reached a five-year high. However, to sustain long-term growth, Vietnam must strengthen its resilience and secure stable capital inflows, especially amid global economic uncertainties. Insurance, as a “soft infrastructure,” plays a critical role in connecting finance, social welfare, and development.

Historically viewed as a financial safety net for individuals and businesses, the insurance sector now serves as a significant provider of long-term capital for the economy.

“As one of Vietnam’s largest investors, we are not just reinvesting capital but also catalyzing sustainable growth. In Q1 2025 alone, the insurance industry reinvested 860 trillion VND into the economy, with Prudential contributing nearly 183 trillion VND. Our goal extends beyond growth—we aim for a more transparent, well-governed economy capable of attracting long-term capital for Vietnam’s future,” stated Mr. Kevin Kwon, CEO of Prudential Vietnam, at the Vietnam Future Economy Summit on November 14.

According to Mr. Kevin, this capital is being responsibly reinvested into key pillars of sustainable development, including infrastructure, healthcare, green energy, and education—sectors prioritized in Vietnam’s 2021–2030 Socio-Economic Development Strategy. This strategy aims for a green, circular economy that balances growth with social welfare.

The stable, long-term nature of insurance capital strengthens financial foundations, reduces cyclical risks, and enhances growth sustainability—a cornerstone of Vietnam’s new socio-economic development phase.

Prudential, a leading investor in Vietnam, drives sustainable growth.

Untapped Potential in Vietnam’s Insurance Sector

According to Prudential’s September 2025 report, *Beyond Coverage – The Social and Economic Impact of Insurance in ASEAN*, Vietnam’s insurance penetration stands at 3% of GDP, significantly below the global average of 6.7%. This highlights the sector’s vast growth potential.

The report indicates that a 50% increase in insurance penetration could raise per capita GDP by 4.1%, while a threefold increase could boost GDP by 17.4%.

These figures underscore insurance as a key driver of sustainable development, stabilizing households against risks while unlocking long-term capital for the economy. New policies are further strengthening the institutional framework for this transformation.

In May 2025, Resolution 68-NQ/TW on private economic development officially recognized private capital as the “most important driver of the economy,” opening new opportunities for financial institutions like insurers to deepen their role in national strategies.

As Vietnam and the UK elevate their relationship to a Comprehensive Strategic Partnership, both nations reaffirm their commitment to deepening economic cooperation, particularly in finance.

At the summit, Mr. Kevin outlined Prudential’s long-term vision: “Prudential is returning to its core values: rebuilding trust and laying a strong foundation for the future. When businesses act responsibly, they attract stable capital and foster inclusive growth. With the long-term perspective of life insurance, we align with Vietnam’s development priorities and are ready to support strategic projects like the International Financial Centers in Ho Chi Minh City and Da Nang. Vietnam’s prosperity is our success.”

With over 26 years in Vietnam, Prudential is not only a pioneer in life insurance but also a key long-term investor. By investing in the future, enhancing community financial literacy, and building trust, the company contributes to the sustainable foundation pursued by the Vietnamese government.