Whole life insurance vs term life insurance

HDBank will choose a life insurance partner for an exclusive bancassurance deal

At the bank’s general shareholders meeting in April, HDBank’s vice chairwoman Nguyen Thi Phuong Thao said that the bank has received a lot of attention recently for an exclusive bancassurance agreement.

“Many international life insurance companies have offered to cooperate with HDBank, but the negotiation has not been completed due to the pandemic,” said Thao. “However, we are not under any pressure to sign an exclusive bancassurance deal at the moment because the contract value in 2021 or next year would be significant.”

Last year, some major lenders have entered the bancassurance competition by co-operating with life insurers. For instance, ACB inked a monopoly deal with Sun Life and VietinBank teamed up with Manulife.

Despite the adverse impacts of the pandemic, the bank reported its pre-tax revenue of VND5.818 trillion($252.96 million) last year, equivalent to an increase of 15.9 per cent on-year.

In the first quarter of this year, HDBank recorded VND2.1 trillion ($91.3 million), up more than 68 per cent on-year.

The bank is accelerating its digitally-led services with its “Di HDBank” application. Moreover, a majority of the bank’s customers have conducted online transactions on the HDBank digital banking platform via its Electronic Know Your Customer (eKYC) implementation.

Pham Quoc Thanh, general director of HDBank, said that since the last quarter of 2020, the bank has reinforced insurance cross-selling initiatives, with many positive performances in return. The bank sets a target this year to collect VND1 trillion ($43.5 million) of insurance service fees.

“Revenue from insurance services is an attractive promise for us in order to diversify our sources of income while reducing reliance on revenue from lending activities,” added Thanh.

By Lam Tien

HDI Global SE – a Germany-based corporation and the majority shareholder of Vietnamese non-life insurer PVI – has been fined for non-compliance with information disclosure and foreign ownership limit rules

VIR reported that on April 16 the State Securities Commission (SSC) fined HDI Global SE due to non-compliance with information disclosure and violating foreign ownership limit rules.

Specifically, a fine of VND125 million ($5,435) is stipulated in Article 28.2 of Decree No.108/2013/ND-CP dated September 23, 2013 on administrative penalties for violations in the securities market for performing one or more transactions in order to conceal real ownership of a security in order to avoid the obligation to disclose information in accordance with regulations.

The fine imposed on HDI is not a considerable amount. However, the SSC’s official decision to require HDI to transfer PVI shares back to their original owners to reduce its ownership ratio has raised tough questions among investors.

In accordance with Article 28.3b of Decree 108, PVI has to comply with the SSC’s requirement within 60 days of receiving the decision.

Many investors have asked how HDI will sell these shares and how it will change PVI’s management structure.

Currently, the foreign ownership limit in PVI has been raised to 100 per cent, but no single investor is allowed to own more than 50 per cent of the stakes. This raises questions whether HDI will find an insider to negotiate the number of shares that it must sell.

The story of HDI’s acquisition of PVI was also mentioned by a German newswire, Handelsblatt Today .

“Insurer HDI Global is facing unexpected legal problems due to its business expansion strategy in Asia. The subsidiary of the Talanx Group has been trying for years to bolster its influence in PVI – one of the largest insurance groups in Vietnam. However, regulators in the Southeast Asian country are now accusing the Hanover-based company of using unfair approach,” Handelsblatt Today noted. “In this particular case, the question is whether HDI has raised its stake in the Vietnamese insurer to more than 50 per cent in the former state-owned PVI in an inadmissible manner. From the point of view of the Vietnamese financial regulator SSC, HDI’s actions have violated local securities law.”

Jens Holger Wohlthat, member of the Board of Management of HDI Global SE, Hannover, also the chair of PVI’s board for 2017-2022 tenure, effective since January 16, 2020

On the other hand, HDI remains adamant that its investment in Vietnam is strictly compliant with Vietnamese regulations.

“ HDI confirms that its compliance with the local laws always remains its priority. HDI affirms that with respect to HDI’s investment activities in Vietnam, prior to making any transactions, the company always reviews and assesses the local regulations, to ensure that HDI’s investments in Vietnam are strictly compliant with Vietnamese regulations,” a representative of HDI Global SE previously said. “HDI has transparently provided its explanations and has been working closely with the SSC as well as other Vietnamese agencies regarding issues presented in OL 4513 and OL 5106 of the SSC within the required period by the SSC. HDI is convinced that we have complied fully with the laws and regulations of Vietnam and we intend to vigorously defend this position.”

“HDI trusts that the Vietnamese Government will provide judicious guidance to ensure the stability and legal safety for the investment activities of HDI in particular and those of foreign investors in general. HDI once again is committed to working closely with the Government of Vietnam, and especially with Vietnam Oil and Gas Group, to ensure that the relationship is effective and constructive, thus ensuring a significant contribution to the good trade relations between Vietnam and the Federal Republic of Germany,” the representative replied in an email response to VIR .

By Lam Tien

Bùi Sỹ Lợi, vice chairman of the National Assembly’s Committee for Social Affairs. — Photo danviet.vn

Bùi Sỹ Lợi, vice chairman of the National Assembly’s Committee for Social Affairs, talks to Dân Việt newspaper about the advantages and disadvantages of the new points in the draft proposal to develop the amended Law on Social Insurance by the Ministry of Labour, Invalids and Social Affairs.

What do you think about the implementation of the Law on Social Insurance over the years?

The implementation of social insurance policies in general and the Law on Social Insurance 2014 in particular is quite good. However, it still reveals shortcomings.

The proportion of people participating in compulsory social insurance is low and the number of voluntary participants is not high. By 2020, only 33.5 per cent of working-age people were taking part in social insurance. Nearly 32 million people of working age (about 66.5 per cent) have not participated.

The maternity and sickness policies for labourers also have many shortcomings. In order to reach the target of 60 per cent of people taking part in social insurance by 2030, it is necessary to have basic solutions for policies and implementation.

Therefore, the amendment and supplementation of the Law on Social Insurance by the Ministry of Labour, Invalids and Social Affairs (MoLISA) is necessary.

One of the new points in the draft revised Law on Social Insurance is to reduce the minimum number of years of social insurance payment from 20 to 10. What do you think about this?

The implementation of this is to comply with Resolution 28 of the Central Government on reforming social insurance policies.

The MoLISA proposes to amend the conditions for pension entitlement, in the direction of gradually reducing the number of years of social insurance payment from 20 years to 15, and eventually 10 years, creating conditions for elderly employees with a low number of years participating in social insurance to enjoy benefits.

Of course, people will enjoy low benefits with a low number of years of payment.

Therefore, policy makers need to calculate carefully to create a balance in social insurance payment and benefits, ensuring employees will enjoy a minimum pension.

The draft proposal also mentions the expansion of the group of beneficiaries of compulsory social insurance. Is this really necessary?

The number of people participating in compulsory social insurance is still low, such as foreign workers, those with labour contracts lasting from one to three months and Vietnamese employees working abroad. These account for less than 50 per cent of the employees who have a labour contract.

Therefore, there are some concerns about the expansion of the group of people paying compulsory social insurance to individual business households, workers in cooperatives. They think this is not feasible.

In my opinion, this is completely feasible because we are moving towards achieving the goal of all people participating in the social insurance system, including compulsory and voluntary social insurance. Therefore, people in the group of compulsory social insurance that fail to join the system will be handled according to the provisions of law.

Additionally, it is also necessary to have solutions to attract more working-age people to sign up for voluntary social insurance to get benefits when they retire.

What is the newest point and highest human value in this draft revised Law on Social Insurance?

I think the newest and most humane point is the drafting board proposes to amend the law that all people can participate in social insurance, so that all employees have a pension. The law should be easily applied to facilitate implementation in order to best serve people. — VNS

The ranking was published in the first quarter of 2021 based on business results from 2016 to 2019 with reference to the business results in 2020.

The representatives of Thien Long Group receiving the FAST 500 certification

FAST500 is an annual ranking based on independent research and assessment according to international standards by Vietnam Report with consultation from domestic and foreign experts and an advisory council.

With the aim of honouring businesses with the fastest revenue growth with good and stable business performance, FAST500 is a high-class playground for Vietnam’s leading businesses and entrepreneurs, and a bridge for Vietnamese brands to reach the world market.

Along with large enterprises in the fields of banking, real estate, insurance, as well as post and delivery, amont others, such as Viettel Post Corporation, Aviva Vietnam Life Insurance, Ecopark Corporation JSC, and Chubb Vietnam Life Insurance. Thien Long Group was also part of this star-studded line-up.

Being registered in the FAST500 rankings this year is a special point of pride for Thien Long as 2021 also marks the fourth decade of its continuous development.

Previously in 2020, Thien Long set the revenue target of VND2.8 trillion ($121.74 million), with VND220 billion ($9.57 million) of after-tax profit, respectively 86.1 and 63 per cent of its 2019 performance. With these results, the enterprise has fulfilled 95.8 per cent of its revenue plan and exceeded its after-tax profit target for the whole year.

According to Thien Long’s leaders, in 2020, the group’s operations and business were affected by COVID-19, especially in the first half, but the company has taken several measures to minimise the consequences. Specifically, Thien Long has changed the distribution structure of products with low profit margins, thereby gross profit margin in 2020 has increased 38.4 per cent against the average of the past three years.

The company has also proactively cut operating costs, management costs, sales expenses, and focused on traditional communication activities while reforming a leaner apparatus.

Thien Long recently announced its financial statement for the first quarter of 2021 with positive revenue and profit over the same period last year. Specifically, net revenue in the period reached nearly VND680 billion ($29.57 million), an increase of 45.3 per cent over the same period, the cost of goods sold increased by less than the increase in net revenue, so the gross profit was more than VND285 billion ($12.4 million), growing almost twice as fast as in the corresponding period in 2020.

The gross profit rate was 42 per cent compared to 29 per cent last year, due to changes in the distribution of products with low-profit margins and strong sales of high-margin products. After subtracting expenses, Thien Long reported an after-tax profit of nearly VND85 billion ($3.7 million) while in the same period last year saw a loss of nearly VND20 billion ($870,570). Thien Long said that the good control of the COVID-19 epidemic has helped students continue regular attendance and the market to gradually return to normal, allowing business to soar in this first quarter.

With the advantage of a strong brand and advanced production technologies, Thien Long is constantly expanding its international markets, bringing Vietnamese brands to many regions and countries around the world.

Now, taking on the digital transformation at its 40-year milestone, Thien Long understands its role not only in manufacturing and supplying a variety of stationery items for learning and teaching but also in addressing wider societal concerns over health and environmental protection.

Entering its fourth decade of supplying Vietnam’s education while stepping into the 4.0 era, Thien Long Corporation is officially opening the “New Era of the Power of Knowledge”, building on the firm belief that knowledge is the universal key to decipher all the difficult problems and endless challenges for people.

With the backdrop of the global economic picture in 2020, Thien Long and many other Vietnamese enterprises are creating a “miracle” as Vietnam is among the few countries to have maintained positive growth to become the fourth-largest economy in Southeast Asia, and one of the 16 most successful emerging economies in the world.

By Huyen Nguyen

Students a class of the Hà Nội University of Science and Technology, one of the leading universities in Việt Nam. — VNA/VNS Photo Thanh Tùng

Associate Prof. Nguyễn Văn Nhã, former head of training department of the Việt Nam National University Hà Nội, talks to Thế giới & Việt Nam (World & Việt Nam) newspaper about the impacts of digital transformation in the education and training sector

How has digital transformation influenced career orientation for students?

First, it should be made clear that digital transformation is a natural thing in the Fourth Industrial Revolution (Industry 4.0). This has become a strategy in many businesses and organisations both locally and internationally. Nearly 90 per cent of Vietnamese businesses have started digital transformation and they are at different stages now, from research to implementation.

More than 30 per cent of business leaders surveyed consider digital transformation life-and-death for their companies and the development of society. More importantly, Industry 4.0 has had deep and wide impacts on all aspects of social life as well as economic, security and defence development.

Education must also change in accordance with this trend. Changes in teaching methods, changes in textbooks, STEM application, experience and creative teaching are among the examples.

Career orientation for students must also be changed and adjusted.

Amid global integration, what are the challenges and opportunities for the education and training sector?

This is a good question for not only this sector but each of us. The opportunities to develop, especially for businesses, are inevitable. We have rapid and precise updates thanks to the modern information system, social networks and supercomputers, besides consistent and timely reports of e-government.

There are also products and services beyond our imagination.

The efficiency and competitiveness of businesses change every day and help push rapidness and innovation.

Digital transformation is not only about technological innovation but also about culture and people. Through digitising learning, both teachers and students can improve their skills with the shared goal of creating more attractive and effective education procedures.

For example, we have global learners, e-learning, effective learning modules and high-quality teacher and lecturer training.

In recent years, the education and training sector has paid attention and pioneered in applying information and technology in many activities. On April 24, Việt Nam National University HCM City launched its Artificial Intelligence Research and Application Centre. This is a positive sign for teachers and students to have practical experience in accessing advanced technology.

With regards to challenges, I often share with pupils and students that when the world is flatter in terms of science and technology, it also becomes rougher in income and the gap between the rich and the poor.

In the history of the four industrial revolutions of humankind, Việt Nam lagged behind and was slow in innovation. We need to be faster and push innovation and creativity to have more breakthroughs. If we just imitate others, we will always lag behind.

The training programmes of many education institutions fail to meet the requirements of the labour market. Is this one of the reasons for graduate unemployment?

The core reason leading to the current unemployment among bachelor and master degree holders is that we lack capable teachers and managers.

In higher education, it is hard to find someone that is good at all three aspects: training, research and management. There are many who have acquired several degrees, qualifications and diplomas but still have limited capacity.

Many businesses are strengthening training for staff at the managerial level to catch up with the development and the new era of management.

I think the education and training sector, instead of calling for teachers to be more passionate about innovation, should offer them opportunities to be trained both in Việt Nam and abroad.

The sector should also pay more attention to improving their lives. This is one of the most effective measures to improve the quality of education and training as well as reduce unemployment among graduates.

On the one hand, we have advanced universities that are listed among the top 500 or 1,000 universities in the region and the world. Many teachers and lecturers are very passionate and dedicated to their career, innovation and the development of this sector.

On the other hand, we also have those that lag behind which are slow in innovation and changes. They waste the resources of parents and students. Therefore, we need to have measures to tackle this problem. But it is not simple at all, it is challenging like fighting against corruption.

But with digital transformation along with increasingly updated and trustworthy information channels, there will be positive changes in this sector.

Many students seek well-paid jobs but when they graduate, these jobs may change. What is your advice for young people now?

We are living in the era of advanced technology, volatility, uncertainty, complexity and ambiguity.

Many jobs will disappear and there will be many new jobs created. We have been seeing this happen. Therefore young people should be ready for changes and unexpected things. Successful people are those who are always ready and well-prepared for new things.

Opportunities are there for everyone but not many are ready for challenges and able to overcome them to achieve success.

High-earning jobs are one of the legitimate demands of people. However, money is only a means in our life but shouldn’t be the purpose.

It doesn’t matter what role you have in this life. It is the passion and willingness to dedicate that matter. In the end, you will be a happy person. Sometimes, it is the profession that chooses you, not that you chooses it. — VNS

NEW GENERATION: The Việt Nam Theatre Artists Association has conducted a project to encourage young people to come and watch theatre productions. Photo Facebook Hanoi Drama Theatre

Establishing a young audience and helping them enjoy the theatrical arts is essential for nurturing their souls and the art form itself, experts have said.

The Việt Nam Theatre Artists Association has recently been carrying out a project to build and develop a new generation of audience for the theatre.

Fostering an interest among young people around the country while they are still at school will be the focus, according to People’s Artist Trịnh Thúy Mùi, chairwoman of the association.

“This project is quite different from previous ones conducted by the Ministry of Culture, Sports and Tourism’s Department of Performing Arts,” said Mùi.

“The aim here is to introduce traditional theatrical genres to students and also to teach them about performing.”

“This project is hoped to bring theatrical arts closer to children and help them see the beauty of the wide array of genres.”

Art troupes and professional artists would perform at schools, she added.

In the first phase, the project would be conducted on a trial basis from junior to high schools in major cities such as Hà Nội, HCM City, and Đà Nẵng.

NURTURING APPEAL: The Hà Nội Drama Theatre’s Những Mầm Xanh (Green Buds) club is piloting performing for kids at Vinschool in Times City. Photo Facebook Hanoi Drama Theatre

The Hà Nội Drama Theatre’s Những Mầm Xanh (Green Buds) club is currently experimenting with performances for children at Vinschool in Times City.

The pilot has received a positive response from the children as well as their parents and sparked a love for the theatre among many.

The club began the pilot last September with the participation of artists from the Hà Nội Drama Theatre.

“Children are given the chance to meet their favourite artists, who will help them nurture a love of the arts,” said Nguyễn Trung Hiếu, the theatre’s director.

“They will become more confident, more mature, and more active.”

Last month, the children were able to visit the theatre at 42 Tràng Tiền Street in Hà Nội and perform a little on stage.

It is hoped that the model will be expanded to other schools around Hà Nội and in other cities.

WINNING FORMULA: The Việt Nam Circus Federation’s Nàng Tiên Cá (The Little Mermaid) has found favour among young audiences. Photo phunuvietnam.vn

The project aims to create an audience for each theatrical genre, but artists and managers need to be more active in producing quality performances that appeal to younger audiences, according to Mùi.

Associate Professor Dr Trần Trí Trắc said the aesthetic tastes of artists and young audiences were yet to find a common voice.

“The audience is one of the basic elements of theatrical arts, joining the director, script writer, and actors, but has received too little attention for a long while,” Trắc said.

“If we want to revive the theatre, first of all we need to attract a younger audience by educating them at school about the art form.”

People’s Artist Trần Ngọc Giàu, president of the HCM City Theatre Association, added that today’s young audiences had many options in terms of entertainment.

“It is necessary to instil in the young a love of the theatre,” Giàu said.

The Việt Nam Youth Theatre has been performing for children around the country for many years and has also set up theatre clubs, where members are given priority to preview new productions.

Members also offer their thoughts to help the theatre produce performances that the public will enjoy.

Shows by the Việt Nam Circus Federation have regularly attracted a young audience but remained active in creating new productions, such as Nàng Tiên Cá (The Little Mermaid), Cây Gậy Thần (Magic Stick), and Hà Nội Của Những Giấc Mơ (Hà Nội of Dreams), which combine different art genres.

Over the years, the Việt Nam Tuồng Theatre has also regularly visited schools to introduce and perform tuồng (classical opera) for a young audience, and young and old can enjoy chèo (traditional opera) shows every Friday night at the Việt Nam Chèo Theatre.

Nguyễn Thị Hòa from Giảng Võ Ward in Ba Đình District is a regular at theatres in Hà Nội.

“I often take my kids to watch shows,” she said. “Some have changed to appeal to a wider audience.”

Many years ago, Huỳnh Anh Tuấn, director of the Idecaf Theatre in HCM City, was concerned about shrinking audience numbers. Young people didn’t seem to find any enjoyment in the theatre, despite it retaining its appeal among adults.

The theatre needs to attract a younger audience and producers need to stage productions that will attract them, according to Tuấn.

Since debuting in 1997, the Idecaf Theatre has been one of only a few to produce shows specifically for children, such as Ngày Xửa Ngày Xưa (Once Upon a Time), which proved popular after premiering in 2000.

The Ministry of Culture, Sports and Tourism has launched a campaign to support existing theatres, but it is not considered a sustainable effort that builds a young audience base.

This is, indeed, the goal of the Việt Nam Theatre Artists Association’s project.

LIFE-LONG PLEASURE: The Việt Nam Theatre Artists Association’s new project will focus on inspiring young children to appreciate the theatre. Photo Facebook Hanoi Drama Theatre

Not only seminars and roundtables will take place within the project but also other activities such as a children’s script writing contest and a theatre festival, according to Mùi.

“One of the reasons for creating a young audience is to ensure the longevity of theatrical arts,” Mùi said. “The best way to approach young people needs to be identified and measures taken to ensure success.” VNS