Enhancing Competitiveness of Insurance Companies after Vietnam Enter New FTA

Abstract

During globalization there are many opportunities for Vietnam employee in many sectors including banking, insurance and others, hence Vietnam employee can be guaranteed with working conditions from new FTA or EVFTA agreement in which there is trade development promotion between EU and Vietnam to create sustainable employment for officers following ILO - Intl. Labor Organization basic conventions. Hence, insurance companies in Vietnam will have more opportunities to increase sales and revenues for insurance services and products that connect with the increasing trend of commercial transactions and trading across border and between nations. Beside, our past researches also indicate that risk level of insurance firms will depend on many factors such as financial leverage, competitor size, tax rate, etc. We also recognized that risk of these companies might increase together with increase in tax rates, so we might suggest proper tax rates to reduce risk. Till the end, authors give out proposed recommendations. For instance, we need supporting policies to expand insurance market and products for agriculture, seafood and exporting credit, etc.