International Assurance Company (Bermuda) Limited (AIA), has received a licence from the government of Vietnam to operate a wholly-owned life insurance company in Vietnam.

This is the first insurance licence granted by Vietnam to a US-based insurance organisation and permits AIA to operate a life insurance company throughout Vietnam.

The name of the company is American International Assurance Co. (Vietnam) Limited (AIA Vietnam) and it is now in the process of establishing office facilities in both Hanoi and Ho Chi Minh City. Initial staff has been hired and AIA Vietnam expects to begin operations as soon as all regulatory approvals are in place.

AIG Chairman Maurice Greenberg said: "We are very pleased that the Ministry of Finance of Vietnam has granted AIA's life licence, marking our return to operating in Vietnam after 25 years.

"Life insurance is key to the process of nation building, mobilising domestic savings for investment in the local economy.

"AIA's long experience in developing the life insurance markets of Southeast Asia will enable us to move rapidly to establish our operations and provide insurance products and employment opportunities for the people of Vietnam.''