Friday, November 24, 2017

Hanwha’s Vietnam strategy finally pays off

For the first time since its launch in Vietnam in 2009, Korea’s Hanwha Life managed to post a profit from its Vietnamese operation.

Hanwha, Korea’s second largest life insurer, generated a net profit of around W300 million (US$255,689) in July-September period.

Officials have considered this to be a rare feat for a foreign entity doing business solo instead of joining up with a local player.

Hanwha established an office in Hanoi early in 2005, but it took years for the company to secure legal corporate status since then.

Except for the regional head and two employees, the rest of its 240 staff are all local hires.

Its strategy paid off as the local environment boosted morale and consumer confidence.

The company is also highly rated by Vietnamese society through its generous social benefits. It has been offering medical subsidies for elderly and children of poor families since 2014.

By 2020, Hanwha aims to join the elite top five insurers in Vietnam.

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Zainudin Ishak, Malaysian Re

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