Vietnam Health Insurance Market Segmented, By Type of Insurance Provider (Public, Private), By Type of Coverage (Individual, Family), By Mode of Purchase (Insurance Companies, Insurance Agents/Brokers, Others), By End User (Minor, Adult, Senior Citizen), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The Vietnam Health Insurance market was valued at USD 11.23 Billion in 2024 and is expected to grow to USD 19.67 Billion by 2030 with a CAGR of 8.23% during the forecast period. The Vietnam Health Insurance market is primarily driven by several key factors. First, the country's growing population and increasing life expectancy contribute to a higher demand for healthcare services, boosting the need for insurance coverage. The government’s ongoing healthcare reforms and efforts to expand the Universal Health Coverage (UHC) scheme have also played a critical role in improving access to health insurance for a broader segment of the population. Also, the rise in chronic diseases and an aging population further push the demand for long-term health coverage. The expanding middle class and greater financial awareness are leading to a shift towards private health insurance plans. Also, digital healthcare innovations and improved insurance offerings have enhanced accessibility, driving market growth in both urban and rural areas.

Key Market Drivers

Increasing Government Support to Strengthen the Sector

Increasing government support is a significant driver in strengthening Vietnam’s health insurance market. As a part of this, as of January 2025, a national conference has been convened by Vietnam Social Security (VSS) to execute updated health insurance legislation and delineate essential tasks for 2025.The conference underscores important modifications brought about by Decree No. 02/2025/ND-CP and Circular No. 01/2025/TT-BYT, which encompass updated eligibility criteria, simplified procedures for specific serious illnesses, and increased responsibilities for the Ministry of Health and VSS.. The Vietnamese government has implemented comprehensive healthcare reforms to expand access to insurance coverage, aiming for Universal Health Coverage (UHC). These efforts are crucial in providing affordable healthcare options to the growing population. Initiatives such as the introduction of the Vietnam Social Health Insurance Scheme (VSI) have made health insurance more accessible to the broader population, including rural and low-income groups. Also, government policies encouraging the private sector's involvement in the health insurance market have led to innovative insurance products catering to diverse needs. Subsidies and tax incentives for insurance companies are also fostering market growth. Also, government-backed awareness campaigns educate citizens on the importance of health insurance, leading to increased participation and coverage. This continued government backing is essential for the sustained expansion of the health insurance sector in Vietnam.

Large Pool of People Suffering from Chronic Disease

A large pool of people suffering from chronic diseases is a key driver of Vietnam's health insurance market. As a part of this, according to the World Health Organization (WHO), in 2025, approximately 22 million individuals in Vietnam suffer from chronic diseases. The rising prevalence of chronic conditions such as diabetes, hypertension, and cardiovascular diseases due to lifestyle changes, an aging population, and urbanization has led to an increased demand for health insurance coverage. These long-term health issues often require ongoing medical attention, treatments, and medications, which can be financially burdensome for individuals. As a result, more people are seeking health insurance to mitigate the high costs associated with managing chronic diseases. This trend is fueling the growth of both public and private health insurance sectors, as individuals look for comprehensive plans that cover long-term treatments. Also, the government's focus on improving healthcare infrastructure and services for chronic disease management further drives the need for insurance, making it an essential tool for financial protection and access to quality care.

Aging Population & Expanding Middle Class

The aging population and expanding middle class in Vietnam are major drivers of the country’s health insurance market. As a part of this, according to a recent study, as of 2022, the portion of the Vietnamese population aged 65 and older was approximately 8.5 percent, reflecting a rise from the year before. That year, the proportion of Vietnamese people aged 15 to 64 was about 67.4 percent. As life expectancy increases and the elderly population grows, the demand for health insurance, particularly for long-term care and chronic disease management, has surged. Older individuals often face higher healthcare needs, making insurance coverage essential to mitigate costs. Simultaneously, the expanding middle class is contributing to a shift in healthcare attitudes, with more people seeking comprehensive health coverage for better access to quality care. This demographic is also becoming more financially capable of affording private insurance plans. As disposable incomes rise, individuals are increasingly inclined to invest in health insurance as a means of securing their well-being. Together, these factors are fuelling the growth of Vietnam’s health insurance market, as both the elderly and the emerging middle class seek affordable, long-term healthcare solutions.

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Key Market Challenges

 Low Awareness & Education

Low awareness and education about health insurance is a significant challenge for Vietnam's health insurance market. Despite efforts to expand coverage and improve access, many individuals, particularly in rural areas, lack understanding of the benefits and importance of health insurance. This results in low enrollment rates, as people are either unaware of available plans or do not fully comprehend how health insurance can protect them from high medical costs. Also, there is often a lack of trust in the insurance system, as some view it as an unnecessary expense rather than a financial safety net. The complexity of insurance policies, limited marketing, and insufficient outreach programs further exacerbate the issue. To address this challenge, increased government and private sector efforts in education and awareness campaigns are essential to inform the population and drive higher participation rates in the health insurance system.

Higher Interest Rates

Higher interest rates present a significant challenge for the Vietnam health insurance market. As interest rates rise, insurance companies face increased operational costs, especially for investment portfolios that help fund claims and manage reserves. This can lead to higher premiums for consumers, making health insurance less affordable, particularly for lower-income individuals and families. Also, higher borrowing costs may limit the ability of insurers to expand or invest in innovative healthcare solutions, slowing market growth. For consumers, increased premiums due to higher interest rates could lead to reduced enrollment in health insurance plans or a shift toward more basic coverage, which may not provide adequate protection. In such an environment, insurers must balance cost pressures with maintaining competitive offerings, while also ensuring they meet the evolving needs of the population.

Key Market Trends

Growing Adoption of Digital Platform

The growing adoption of digital platforms is a key trend shaping the Vietnam health insurance market. With the increasing penetration of smartphones and internet access, consumers are increasingly turning to digital tools for health insurance solutions. Digital platforms allow individuals to easily compare insurance plans, check policy details, and purchase coverage online, offering greater convenience and accessibility. Mobile applications and websites enable seamless claims processing, premium payments, and real-time customer support, improving the overall user experience. Also, these platforms provide insurers with valuable data analytics to better understand customer preferences and tailor offerings. The shift to digital is not only enhancing customer engagement but also allowing insurers to lower operational costs and reach underserved populations, particularly in rural areas. This trend is expected to continue as more consumers embrace digital solutions for their healthcare needs, driving growth in the health insurance sector.

Rise of Wellness & Preventive Program

The rise of wellness and preventive care programs is a prominent trend in the Vietnam health insurance market. As healthcare costs continue to rise and the population becomes more health-conscious, insurers are increasingly incorporating wellness initiatives into their policies. These programs encourage policyholders to engage in healthier lifestyles, offering incentives such as discounts on premiums or rewards for completing health assessments, fitness challenges, or regular check-ups. Preventive care services, including vaccinations, screenings, and early detection programs, are being integrated into insurance plans to help reduce the incidence of chronic diseases and improve overall public health. By focusing on prevention, insurers aim to lower long-term healthcare costs and enhance customer satisfaction. This shift not only benefits individuals but also contributes to the sustainability of the health insurance sector by reducing the financial burden of treating preventable conditions.

Telemedicine Integration

Telemedicine integration is rapidly becoming a significant trend in the Vietnam health insurance market. With the growing demand for accessible healthcare and advancements in digital technologies, insurers are increasingly incorporating telemedicine services into their health plans. Telemedicine allows policyholders to consult with doctors remotely through video calls, phone consultations, or online chat, offering a convenient alternative to traditional in-person visits. This trend is particularly beneficial in rural areas, where access to healthcare facilities can be limited. By offering telemedicine, insurers can improve healthcare access, reduce waiting times, and enhance customer satisfaction. Also, telemedicine supports cost efficiency by minimizing the need for physical visits and enabling early diagnosis and management of health issues. As the Vietnamese government continues to promote digital health initiatives, telemedicine is expected to play a key role in expanding healthcare accessibility and improving the overall health insurance experience for consumers.

Segmental Insights

Type of Insurance Provider Insights

Public dominated the Vietnam Health Insurance market, primarily through the government-backed social health insurance (SHI) program. This scheme covers a large portion of the population, including employees, students, and low-income groups, with the goal of achieving Universal Health Coverage (UHC). The government heavily subsidizes premiums for certain groups, making it more affordable for lower-income citizens. While private health insurance is growing, particularly in urban areas, the public system remains the primary source of coverage for most Vietnamese. The public system's broad reach and affordability make it the dominant force in the market, although increasing demand for better services and private coverage options is driving gradual market diversification.

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Regional Insights

Northern dominated the Vietnam Health Insurance market, due to its larger population and stronger healthcare infrastructure. Major cities like Hanoi have higher levels of insurance coverage, with a higher percentage of the population enrolled in both public and private health insurance plans. The region benefits from government initiatives aimed at expanding access to healthcare, along with more awareness and financial capability to afford insurance products. However, despite this dominance, growth is also occurring in the central and southern regions, as awareness and affordability of health insurance increase nationwide. Also, Southern is driven by factors such as rapid urbanization, a growing middle class, and increased awareness of healthcare needs.

Recent Developments

• In October 2024, Poni Insurtech Pte. Ltd, the global arm of Huize Holdings, Asia’s premier insurance technology platform, announced that its Vietnam-based subsidiary, Global Care Consulting Joint Stock Company (“Global Care”), launched its new health insurance comparison platform, “GlobalCare.vn” (https://globalcare.vn). With the aim of providing an enhanced, clear, and easy-to-navigate insurance shopping experience for Vietnamese consumers, the platform aspires to establish itself as a one-stop “insurance supermarket.”

Key Market Players  

• AIA Group Limited
• Manulife (Vietnam) Company Limited
• Chubb Group Holdings Inc.
• AXA Global Healthcare
• Cigna Corporation
• MSH International
• Luma
• Allianz SE
• HSBC Bank (Viet Nam) Ltd
• Star Health

Report Scope:

In this report, the Vietnam Health Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Vietnam Health Insurance Market, By Type of Insurance Provider:

o   Public

o   Private

• Vietnam Health Insurance Market, By Type of Coverage:

o   Individual

o   Family

• Vietnam Health Insurance Market, By Mode of Purchase:

o   Insurance Companies

o   Insurance Agents/Brokers

o   Others

• Vietnam Health Insurance Market, By End User:

o   Minor

o   Adult

o   Senior Citizen

• Vietnam Health Insurance Market, By Region:

o   Southern

o   Northern

o   Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Vietnam Health Insurance Market.

Available Customizations:

Vietnam Health Insurance Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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