10:22 | 28/12/2016 Economy
(VEN) - Standing among the leading foreign investors in Vietnam, Korean businesses have shown their potential and strength in a variety of investment areas. Hanwha Group, one of the top 10 business conglomerates in South Korea, plans to invest strongly in Vietnam in fields such as finance and credit, real estate, and office for rent. Hanwha Life, a member of the group, has carved a niche in the Vietnamese insurance market.
|The Hanwha Group will increase and diversify its investments in Vietnam|
Increasing global presence
In recent years, the Hanwha Group has made nonstop efforts to expand its operations and increase its contribution to the Korean economy. It has acquired the stocks of subsidiaries of large groups such as Samsung.
In July 2016, from the 329th position in 2015, Hanwha moved up 52 places to rank 277th in the list of Global 500 Companies. The Fortune Magazine made this ranking list based on the revenue of companies. Hanwha’s revenue rose from US$33 billion in 2015 to US$36.5 billion this year.
Hanwha achieved this revenue growth thanks to the group’s effective operations in various fields where it has advantages such as chemicals, technology, and petrochemicals. Hanwha Total Petrochemical has contributed significantly to the group’s growth through manufacturing diverse products. Hanwha General Chemical, which was acquired by the Hanwha Group last year, has undergone tremendous changes and announced satisfactory profits.
Meanwhile, Hanwha Techwin has obtained a growing number of long-term supply contracts following its reorganization to focus on defense technology.
Hanwha Defense Systems became the latest member of the Hanwha Group in 2016. It specializes in manufacturing defense systems, supervisory equipment for military uses, control, information, and communications devices. Hanwha Techwin and Hanwha Defense Systems have supplied advanced defense solutions for many countries worldwide.
Solar energy is a major business field of the Hanwha Group. Hanwha Q CELL promises to contribute to promoting Hanwha’s position in the Global 500 list.
Hanwha has seen its successful operations in the insurance market. Hanwha Life is the first Korean life insurer in the Vietnamese market. With its total assets reaching US$84 billion in 2016, the company is going to reach its break-even point after seven years of operations.
Vietnam, gateway to other Southeast Asian markets
Hanwha Life Vietnam currently stands among the leading insurance companies in Vietnam. Its chartered capital has reached approximately VND1.9 trillion. The company has set a VND1 trillion target for new business and renewal yearly premium by the end of this year and continues to expand its operations nationwide.
By the end of this October, Hanwha Life Vietnam had 66 offices and general agencies serving more than 100,000 customers nationwide. The company currently has more than 13,000 financial consultants (insurance agents), including nearly 1,000 leaders and about 1,400 star agents. The number of Hanwha Life Vietnam’s new recruits is more than 1,000 per month. According to Hanwha Life Vietnam Chairman and General Director Back Jong Kook, Vietnam is a potential market with gross domestic product growing more than six percent annually, while the Korean economy has showed signs of slowdown. The growth of the life insurance sector is always directly proportional to the development of a country. Insurance companies will grow rapidly when the economy develops strongly. In 2015, the Vietnamese insurance market achieved the highest growth rate over the last five years and will surely develop further in the years to come.
“We are concentrating on improving service quality towards the goal of standing among the top five insurers in Vietnam. This is a big and challenging goal. Along with efforts to achieve this goal, we are striving to develop the company in a healthy and sustainable manner to attract employees,” General Director Back Jong Kook said.
Like other large financial groups, Hanwha plans to maintain long-term investment in Vietnam to build the firm foundation for its access to other Southeast Asian markets such as Cambodia, Laos, and Myanmar.
Apart from insurance, the Hanwha Group intends to expand its operations in Vietnam through its presence in other sectors such as finance, office leasing, real estate and others.
Experts expected that the Vietnamese insurance market would grow 60-120 percent in the next three to five years, and that new, potential insurers such as Hanwha Life would create certain changes in this market in the future.