Vietnam
Insurance for Expats in Vietnam. Discover the comprehensive guide to insurance in Vietnam, covering health, travel, corporate, and life insurance. Learn about the insurance market, regulatory environment, major providers, and practical advice for expats.
Overview
Vietnam, officially known as the Socialist Republic of Vietnam, is a Southeast Asian country known for its rich cultural heritage, stunning landscapes, and rapid economic growth. Bordered by China to the north, Laos and Cambodia to the west, and the South China Sea to the east, Vietnam is home to over 97 million people. Its capital city, Hanoi, is a hub of political and historical significance, while Ho Chi Minh City (formerly Saigon) is the economic powerhouse of the country.
Vietnam has experienced remarkable economic growth over the past few decades, transitioning from a centrally planned economy to a market-oriented one. This shift has led to significant improvements in living standards, a reduction in poverty rates, and an increase in foreign investments. In 2023, Vietnam’s GDP growth was estimated at around 6.5%, making it one of the fastest-growing economies in the region. Due to the drastic growth in the last decade, the Vietnamese economy has attracted a large inflow of overseas investment, thus increasing the number of expats from overseas moving to the country.
As you embark on your Vietnamese adventure, understanding the intricacies of insurance in this Southeast Asian nation is crucial for ensuring peace of mind and financial security.
Health Insurance Vietnam
When moving to Vietnam, looking at expat health insurance is an essential item all expats should have. According to the Vietnamese Ministry of Labor, Invalids and Social Affairs, there were approximately 83,500 foreign workers in Vietnam as of 2020. This number has likely increased since then, reflecting Vietnam’s growing appeal as an expat destination.Â
The healthcare system in Vietnam is respectable in urban centers, however rural areas struggle to match these standards by some distance. In most areas in Vietnam, health care is provided at a substandard level by public medical facilities. There are often shortages of medicine and medical equipment. Physicians and medical professionals at these facilities generally only speak Vietnamese. In addition, waiting times can be excessively long.
For expatriates in Vietnam, having comprehensive health insurance is essential. There are several options available:
- Local Vietnamese Health Insurance
- International Private Health Insurance
- Travel Insurance (for short-term visitors)
International Health Insurance Plans for Expats in Vietnam
International health insurance plans are often the preferred choice for expats living in Vietnam. These plans are designed to provide comprehensive coverage that addresses the unique needs of expatriates. Here are the key benefits of opting for international health insurance:
Wider Coverage, Including Treatment Abroad
One of the significant advantages of international health insurance is its extensive coverage. These plans not only cover medical treatments within Vietnam but also include provisions for treatment abroad. This is particularly beneficial for expats who may prefer receiving medical care in their home country or another country with advanced healthcare facilities. Coverage typically includes:
- Inpatient and Outpatient Care: Hospital stays, surgeries, specialist consultations, and diagnostic tests.
- Emergency Medical Evacuation: Transfer to another country if the necessary treatment isn’t available locally.
- Repatriation of Mortal Remains: In the unfortunate event of death, the policy covers the cost of returning the body to the home country.
Higher Limits on Coverage
International health insurance plans generally offer higher limits on coverage compared to local plans. This means that the insured can access a broader range of services without worrying about exceeding their coverage limits. Higher coverage limits are essential for:
- Expensive Treatments: Accessing high-cost treatments and medications without out-of-pocket expenses.
- Chronic Conditions: Ongoing management and treatment of chronic illnesses that require regular medical attention.
Direct Billing with Many Private Hospitals
Many international health insurance providers have agreements with private hospitals around the world, including in Vietnam. These agreements allow for direct billing, which means that the hospital will bill the insurance company directly for the covered medical expenses. This arrangement provides several advantages:
- Convenience: Avoids the need for the insured to pay upfront and seek reimbursement later.
- Cash Flow Management: Ensures that large medical bills do not disrupt personal finances.
- Priority Treatment: Often, direct billing arrangements can expedite access to medical care.
24/7 Support in English
International health insurance plans typically offer 24/7 support services in English, which is a crucial feature for expats. This support can include:
- Medical Assistance: Access to medical advice and guidance at any time.
- Claims Assistance: Help with filing and processing insurance claims.
- Emergency Support: Immediate assistance during medical emergencies, including arranging for medical evacuation if necessary.
To ensure access to the highest level of health care available in Vietnam, it is highly recommended that all expatriates secure private medical insurance for the duration of their stay.
It is possible to find a sufficient level of care at private hospitals in Hanoi and Ho Chi Minh City. Doctors and staff members at these hospitals graduated from universities in the USA, Korea, Japan and France and have trained abroad, therefore they are generally likely to speak good English and/or French. While care is affordable, you’ll want to be sure you have access to the best quality available while in Vietnam.
It is essential that expats in Vietnam invest in comprehensive international health insurance to help keep costs down and manageable.
Utilizing the services of an insurance broker can be highly beneficial for securing a comprehensive plan as Brokers can:
- Provide Expert Advice: Help you understand complex insurance terms and coverage details.
- Tailor Plans: Assist in finding a plan that is tailored to your specific needs.
- Negotiate Terms: Potentially negotiate better terms and premiums on your behalf.
Best Health Insurance Providers in Vietnam
| Type of Insurance | Description | Price | Providers |
|---|---|---|---|
| Local Focus | Vietnamese companies with offices and claims processing in Vietnam, eligibility rules require you to live in Vietnam for the majority of the policy year | $ | Bao Viet, PG/PJICO, PTI, PVI, UIC, VietinBank Insurance, and more |
| Regional Focus | International companies that may have an office in Vietnam, strong focus and presence across Southeast Asia, eligibility rules require you to live in Vietnam for the majority of the policy year | $$ | April, Henner, Liberty, Luma, Pacific Cross, Safe Meridian, and more |
| International | International companies that probably don’t have an office in Vietnam, geared toward globally mobile expats, eligibility rules vary | $$$ | ACS, Allianz, April FR, AXA, Bupa, Cigna Global, Expacare, Healthcare International, IMG, PassportCard, Morgan Price, MSH, and more. |
Local vs International Health Insurance Plans
| Plan Type | Affordability | Coverage Limits | Network of Providers | Customer Support | Global Coverage |
|---|---|---|---|---|---|
| Local Focus | High | Low | High | Medium | Low |
| International | Low | High | High | High | High |
When comparing local and international health insurance plans in Vietnam, each has distinct advantages and drawbacks. Local health insurance plans are highly affordable, offering coverage tailored to local healthcare needs and providing access to a wide network of local providers with direct billing arrangements. However, these plans typically have lower coverage limits, limited international coverage, and potential language barriers in public hospitals – not an ideal choice for expats.
On the other hand, international health insurance plans provide extensive global coverage with high coverage limits, making them ideal for globally mobile expats. These plans offer direct billing with international hospitals and 24/7 support in multiple languages, including English. The main downside is the higher premiums.
Local Health Insurance Vietnam
Local health insurance in Vietnam is an essential aspect of the healthcare system, providing coverage for both Vietnamese nationals and expats. The Vietnamese government offers a public health insurance scheme, which is mandatory for all citizens and provides access to a wide range of medical services at public hospitals and clinics. This scheme is funded through contributions from employers, employees, and the government, ensuring that basic healthcare needs are met for the majority of the population.
In addition to the public health insurance, there are numerous private health insurance options available in Vietnam. These private plans are offered by both local and international insurance companies, catering to different needs and budgets. Local insurance providers, such as Bao Viet and PTI, offer comprehensive plans that cover inpatient and outpatient treatments, emergency services, and sometimes even dental and optical care2. These plans are particularly popular among expatriates and those seeking more extensive coverage than what the public system provides.
One of the key advantages of private health insurance in Vietnam is the access to private hospitals and clinics, which are often perceived to offer higher quality care and shorter waiting times compared to public facilities1. Additionally, private insurance plans often include benefits such as direct billing, which simplifies the payment process for policyholders.
For expatriates, international health insurance plans are also available, providing coverage not only in Vietnam but also in other countries. These plans are ideal for those who travel frequently or have families living in multiple locations3. However, they tend to be more expensive than local plans.
Overall, the health insurance landscape in Vietnam is diverse, offering a range of options to suit different needs and preferences. Whether opting for public, local private, or international insurance, individuals can find a plan
Travel Insurance Vietnam
Vietnam has many different places to travel to from ancient ruins, bustling modern cities to quite remote beaches. Travel insurance is an essential consideration for anyone planning trips to Vietnam. These plans provide a range of benefits designed to protect travelers from unforeseen events that could disrupt their journeys or incur significant expenses.
Key Features of Travel Insurance Plans:
Medical Emergencies: Travel insurance covers unexpected medical expenses due to illness or injury during the trip. This includes hospitalization, emergency medical treatment, and medical evacuation if necessary.
Trip Cancellation and Interruption: If a trip needs to be canceled or cut short due to unforeseen circumstances such as illness, natural disasters, or other emergencies, travel insurance reimburses non-refundable expenses like flights, accommodations, and tours.
Lost or Delayed Luggage: Compensation is provided for lost, stolen, or delayed baggage, helping travelers replace essential items and continue their journey with minimal disruption.
Adventure Sports Coverage: Some travel insurance plans offer coverage for injuries sustained during adventure sports like scuba diving, skiing, or trekking. This is especially useful for travelers engaging in high-risk activities.
Travel Assistance Services: 24/7 travel assistance services are available to help with emergencies, such as arranging medical care, replacing lost passports, and providing legal assistance.
If you are travelling to a rural area of Vietnam, finding a hospital might require a very long drive, and the services available there might feel substandard compared to what you are used to. For any serious injuries or illnesses, you may want to travel to the closest city for treatment.  It is because of this many travellers to Vietnam include emergency medical evacuation and repatriation on their Vietnam travel insurance plans.
To ensure comprehensive protection, your travel insurance policy for Vietnam should encompass several crucial components. These typically include emergency medical coverage (ideally at least $100,000), which should cover both treatment and potential medical evacuation; trip cancellation and interruption insurance to reimburse non-refundable expenses; baggage loss or delay compensation; personal liability coverage for accidental injury or property damage; and specific coverage for adventure activities like motorbiking, which is popular among tourists but often excluded from standard policies.Â
Additionally, given Vietnam’s tropical climate and potential for natural disasters, coverage for trip disruptions due to severe weather or natural events is advisable. For complete peace of mind, travelers should also look for policies that include 24/7 emergency assistance, and flexibility for trip extensions. While travel insurance is an additional expense, it’s a crucial investment for travel to Vietnam. The peace of mind it provides allows travelers to fully enjoy their Vietnamese adventure, knowing they’re protected against unforeseen circumstances. Always review multiple policies and choose one that best fits your specific travel plans and personal needs.
Life Insurance Vietnam
Expat life insurance in Vietnam is something that everyone with a young family should look at. It is often the case that the main income generator for expat families in Vietnam is one person so the impact on the family should a death occur to this person is potentially catastrophic.
Life insurance in Vietnam offers expats the financial protection and peace of mind for their families’ future. Key components of a comprehensive life insurance policy in Vietnam typically include term life insurance, which provides coverage for a specific period, and whole life insurance, offering lifelong protection with a cash value component.
Universal life insurance, combining flexible premiums with investment options, is also available. Policyholders should consider critical illness coverage, which provides a lump sum payment upon diagnosis of specified serious conditions, and riders such as accidental death benefit or waiver of premium.
When choosing a policy, factors to consider include sum assured (coverage amount), premium payments, policy term, and the insurer’s claim settlement ratio.
Popular providers in the Vietnamese market include Prudential Vietnam, Manulife Vietnam, and AIA Vietnam. Expatriates should be aware of any currency restrictions and tax implications. It’s crucial to disclose pre-existing conditions and understand the policy’s exclusions.
As the Vietnamese life insurance market continues to grow, digital platforms such as i-Brokers, are making it easier to compare policies and purchase coverage online. Whether for income replacement, debt coverage, or legacy planning, a well-chosen life insurance policy can provide crucial financial security in Vietnam’s dynamic economic landscape.
Life insurance in Vietnam can allow you to cherish your years more easily without the stress brought on worrying about what will happen to your loved ones after your death.Â
For more details on life insurance in Vietnam, click here.
