This paper provides an analysis of ex post facto effects after the entry of foreign companies into the Vietnamese insurance market and argues that foreign competition has positively impacted the insurance industry based on evidence from Vietnam. Based on 16 years of data, the paper presents the main observations on the impact of international competition on the insurance market after Vietnam opened up to foreign investors. The results show that in Vietnam: after foreign penetration, local companies do not lose market share rapidly as liberation takes time
foreign insurers may dominate the domestic market, but if insurance penetration is low, this impact does not endanger the financial security of the country
the dominance of foreign insurers in the life sector could change the traditional insurance trajectory in emerging economies , which are traditionally oriented mostly on developing compulsory third-party liability insurance
foreign insurers make long-term contributions to the local economy if they invest in local capital markets. Thus, the paper argues that foreign competition has positively impacted the insurance industry based on evidence from Vietnam.