PVI Holdings seeks strategic shareholders for Hanoi Re to forge long-term growth

As Vietnam’s stock market experiences a wave of positive momentum, marked by the launch of the new KRX trading system and expectations of an upgrade to emerging market status, listed companies, particularly leading insurers like PVI, are making strategic moves to seize the “perfect timing and conditions.” Nhip Cau Dau Tu Magazine spoke with Mr. Duong Thanh Danh Francois, Permanent Vice Chairman of the Board at PVI Holdings, to gain deeper insights into the group’s strategic direction in this new phase of development.

Q: Will PVI continue to maintain its high dividend policy (as seen during 2021–2024) in the coming years? Is there consideration to adjust the payout ratio to balance shareholder returns with reinvestment for long-term growth?

In 2024, PVI’s stock price reached an all-time high, without the need for a flashy PR campaign. The company’s strong revenue and performance figures spoke for themselves.

In that year, PVI recorded consolidated revenue of VND 21,824 billion, achieving 125% of its 2024 target. Pre-tax profit reached VND 1,118 billion, fulfilling 104% of the plan. Surpassing key performance indicators, the 2025 Annual General Meeting approved a 2024 dividend payout of 31.5%, exceeding the 28.5% originally committed. This marks the 10th consecutive year that PVI has maintained a dividend payout of at least 20%, and the second-highest payout in its history. This reflects PVI’s internal strength and resilience amid volatile domestic and global markets.

PVI is one of the few enterprises globally that distributes over 90% of post-tax profit with a dividend-to-stock-price ratio exceeding 5%, a rarity among insurance firms. We are fully committed to preserving and growing the capital entrusted to us by shareholders and aim to achieve new milestones on a global scale, with international standards as our benchmark for performance.

We emphasize the importance of all shareholders, majority or minority. PVI places shareholder interests at the core of our decisions, with safety being the foremost principle in our business operations.

Mr. Duong Thanh Danh Francois, Permanent Vice Chairman of the Board at PVI Holdings. Photo by PVI Holdings.

Q: In the face of increasing competition in the insurance sector, what strategy does PVI Insurance pursue to protect market share and ensure sustainable growth amid widespread industry restructuring?

PVI Insurance is pursuing five core strategies and objectives:

- Maintain its position as Vietnam’s number one insurer in scale, efficiency, and service quality.

- Sustain a market share target of 16%–18% by 2025.

- Focus on strong insurance segments such as fire and explosion, property, engineering, energy, and marine insurance, while targeting projects with foreign investment.

- Leverage the A- credit rating to expand reinsurance operations with international partners, ensuring safety, effectiveness, and alignment with risk appetite.

- Maximize profits from effective financial investment activities.

Q: Is PVI AM currently researching or preparing specific plans to expand its fund management operations in 2025? What are the long-term strategic goals as the company looks beyond the PVI ecosystem?

In 2025, PVI AM plans to explore expanding its fund management services beyond the internal ecosystem to serve external institutional and individual investors, catering to the market’s diverse investment needs. This is a strategic move to diversify its client base and increase Assets Under Management (AUM) in the long run.

PVI AM is currently preparing the necessary human resources, systems, and strategic partnerships to support this goal.

Q: As Vietnam’s asset management industry is projected to grow significantly with increased participation from both domestic and foreign financial institutions, how do you view the market potential and PVI AM’s positioning in the competitive landscape?

Investment demand from businesses and individuals remains strong, especially in a low-interest-rate environment. Asset management is expected to see rapid growth as Vietnam’s per capita income approaches USD 5,000. Investment funds have gradually recovered from the corporate bond market crisis.

As a subsidiary of PVI Holdings, PVI AM benefits from the strong support of PVI’s major shareholders, offering competitive advantages in accessing business opportunities both domestically and internationally through an extensive partner network. With the investment expertise and resources of PVI Holdings, HDI Global SE, and PVN, PVI AM also enjoys comprehensive support in talent development, collaboration, and investment initiatives.

With in-depth knowledge, extensive market experience, and a customer-first philosophy, the PVI AM team focuses on developing diverse investment products and structures tailored to client needs, financial conditions, and market cycles—delivering sustainable returns while ensuring robust risk management.

Q: What specific criteria is PVI Holdings setting to select a strategic shareholder for Hanoi Re? Can you elaborate on the types of support expected—from capital to technology transfer or client networks?

Currently holding over 80% of Hanoi Re, PVI Holdings sees room for strategic shareholders. This shift in shareholder structure aligns with PVI’s vision to support Hanoi Re in improving its credit rating, diversifying revenue sources, and strengthening financial capabilities.

In 2025, Hanoi Re will implement combined strategies targeting both domestic and international markets. Photo by PVI Holdings.

PVI Holdings is seeking like-minded, long-term strategic partners who can actively contribute to Hanoi Re’s transformation, by shifting revenue structures, expanding the global customer base, and helping PVI enhance Hanoi Re’s operations to achieve an A- financial strength rating from AM Best.

Given Hanoi Re’s pivotal role within the PVI system, any shareholder structure change will only be implemented under favorable conditions, with PVI Holdings retaining controlling interest. No final decision has been made to date.

In 2025, Hanoi Re will implement combined strategies targeting both domestic and international markets, including launching new products and tapping into potential regions. Since 2024, the company has proactively participated in prestigious global reinsurance conferences across Africa, East Asia, and the Middle East to expand market access.

Hanoi Re is also intensifying global business collaborations, particularly in developing markets where it can add value through training, product design, risk assessment, and claims services laying the foundation for robust partnerships.