FROM JANUARY 01, 2023, INSURANCE ENTERPRISES MAY NOT CONDUCT IN REAL ESTATE BUSINESS
This highlight content is prescribed by the National Assembly in the Law on Insurance Business No. 08/2022/QH15 dated June 16, 2022.
Accordingly, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches are not allowed to conducting real estate business, except for the case of purchasing stocks of a real estate enterprises listed on the securities market, fund certificates of public funds, etc.
Besides, insurance enterprises are not allowed to conduct real estate business, except for the case of purchasing, investing or owning real estates for use as business headquarters, workplace or warehouses directly serving professional operations; leasing unused business headquarters under the ownership or use right; holding real estate due to the handling of bonds secured by real estate, due to the clearing of debts with real estate within 3 years from the date of holding.
In addition, from January 01, 2023, insurance enterprises and branches of foreign non-life insurance enterprises shall stop paying the fund for protection of the insured. The entire balance of the fund for protection of the insured shall be managed by the Ministry of Finance to be used for the purpose of protecting the interests of the insured in cases an insurance enterprise becomes insolvent or goes bankrupt.
This Law takes effect on January 01, 2023.
