Techcombank is expanding its presence in the insurance sector through a new venture with Vingroup, as announced on March 23, 2025. The bank’s strategic move involves establishing a new subsidiary, TCLife, underscoring Techcombank’s commitment to growth in Vietnam’s financial landscape.
Techcombank will hold an 80 percent stake in TCLife, with Vingroup and other partners holding the remaining 20 percent. TCLife will have a charter capital of VND1.3 trillion ($50.7 million). The venture is expected to generate VND1.19 trillion ($46.4 million) in net revenue after its first five years of operation, with a projected profit margin of 23.4 percent, according to the bank’s announcement.
Techcombank anticipates that its investment in TCLife will boost its net assets and solidify its position in the financial market. TCLife’s total assets are projected to reach VND728 billion ($28.4 million) in its first year and grow to VND16.1 trillion ($628 million) by year five.
Vietnam’s favorable demographics, with a large working-age population, and the comparatively modest contribution of life insurance to the nation’s GDP—currently at 1.2 percent—suggest considerable room for expansion. Furthermore, market research from Cimigo, spanning from 2017 to 2022, indicates a significant increase in the number of families with monthly incomes between $500 and $999, and an even more substantial rise in those earning over $1,000 monthly.
This rise in financial capacity and wider awareness of financial instruments are expected to keep life insurance products popular. The fluctuations in the life insurance market have opened up opportunities for companies with a digital orientation in consulting and after-sales services.
In October 2024, Techcombank ended its exclusive distribution agreement with Manulife, which began in 2013. This partnership was previously successful in providing life and health insurance solutions to customers.
