The year 2008 to PVI is a year of challenges. The global economy experienced many difficulties due to the financial crisis, which led to the collapse of a range of financial institutions such as banks, insurance companies and investment funds. The financial crisis has become more and more serious, spreading out to other economic sectors such as manufacturing and service, and resulting in the global economic crisis. In Vietnam, domestic capital and currency markets fluctuated remarkably, securities market went down, and the growth rate of GDP declined from 8.5% to 6.25%. Vietnamese insurance market grew slowly with over 60% of non-life insurers making operational losses.
In terms of its organization, in the year 2008, PVI was preparing for a transition between two leadership generations. However, PVI’s leaders and staffs have successfully overcome many challenges and fulfilled its business plan for the year 2008. For the first time in history, PVI has achieved an insurance revenue of more than VND 2.000 billion and become the largest non-life insurer in Vietnam in terms of equity and total assets. PVI was the unique insurer which is ranked by Standard & Poor’s as 1 of the 5 Vienamese largest firms in terms of scale, liquidity and unlimited commercial capacity. PVI was also the unique one awarded as “Vietnam Golden Star” for its famous brand name. All facts and figures in 2008 have contributed to PVI becoming the leading non-life insurer in Vietnam with its prestige highly favored by both local and international markets.
Ladies and Gentlemen, the cycle of recession followed the financial crisis. The significant decrease in oil, food and raw material prices, the standstill of export and import and no indication of recovery in the securities market will push the economy down further in 2009. However, this is also a chance of breakthroughs for companies that always view challenges as opportunities like PVI.
Inheriting and upholding its traditions, PVI will make the best of its competitive advantages, including the support of Petrovietnam Group and its members, and being the leading local insurer in terms of equity, total assets and core service lines of Vietnam insurance market and economy such as energy insurance, engineering insurance, marine insurance, reinsurance, etc. Such competitive advantages will be associated with its “Client-Oriented” business motto, “knowledge” as a foundation and “people” as the heart of the development. To maintain its speedy but sustainable growth, PVI will carry out five critical tasks as below:
1. Developing a modern management system, a reporting system and an internal control system that obey international standards so as to prepare for its future listing in Hong Kong or Singaporean Stock Exchange.
2. Making the most of Petrovietnam’s advantages and strengths to provide a full package of insurance services to the industrial sectors as well as to utilize a big brand name to promote retail products.
3. Mustering up all resources, advantages and strengths to develop its reinsurance businesses and striving for the leading reinsurer of Vietnam.
4. Promoting financial services in combination with insurance services, mobilizing funds from local and international markets, identifying opportunities to invest in low-price assets whose values are highly potential to increase when the economy recovers.
5. Heightening transparency and fairness so as to improve solidarity and unity within the whole system, strictly maintaining work disciplines, providing internal training on corporate culture to maintain each employee’s pride of PVI.
With a thirst for a continuously prosperous PVI, I believe PVI’s leaders and staffs will be able to conquer new mounts and to write a glorious charter in PVI’s history.
Cordially!
Nguyen Anh Tuan
Chairman