This is one of the new provisions of the Law on Insurance business No. 08/2022/QH15 passed by the National Assembly on June 16, 2022.
In particular, Clause 4, Article 99 of this Law prescribes that insurance enterprises, reinsurance enterprises, and Vietnam-based foreign branches are not allowed to invest, or entrust to invest in real estate business.
At the same time, they are not allowed to conduct real estate business, except for the cases of:
- Purchasing stocks of real estate enterprises listed on the securities market, fund certificates of public funds;
- Purchasing, investing, or owning real estate 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.
This regulation takes effect on January 01, 2028.
These are the completely new provisions of the Law on insurance business 2022, the Law on insurance business 2000 still allows insurance businesses to use idle capital to invest in real estate business in Vietnam.
The Law on insurance business 2022 takes effect on January 01, 2023.