Current Compulsory Insurance in Vietnam

Current Compulsory Insurance in Vietnam

If “compulsory insurance” is understood as commercial insurance that the law requires certain entities or individuals to purchase, the current legal framework in Vietnam can be summarized as follows:

1. Compulsory Civil Liability Insurance for Motor Vehicle Owners

Owners/operators of motor vehicles are required to purchase compulsory civil liability insurance.

Legal basis: Law on Insurance Business 2022 and Decree No. 67/2023/ND-CP, as amended and supplemented.

2. Compulsory Fire and Explosion Insurance

Certain establishments and entities subject to fire and explosion risks are required to purchase compulsory fire and explosion insurance.

Legal basis: Law on Insurance Business 2022 and Decree No. 67/2023/ND-CP, as amended and supplemented.

3. Compulsory Insurance in Construction Activities

The compulsory insurance regime for construction activities includes several separate types of insurance:

a) Compulsory insurance for construction works during the construction period

Applicable to construction projects falling within the categories prescribed by law, including projects with significant impacts on safety and public interests, projects with high or relevant environmental risks, and large-scale or technically complex projects.

b) Compulsory professional liability insurance for construction investment consultants

Applicable to organizations and individuals providing construction investment consultancy services in cases prescribed by law.

c) Compulsory third-party liability insurance for construction contractors

This covers the civil liability of construction contractors toward third parties arising from construction activities.

d) Compulsory insurance for workers working on construction sites

This covers the liability of construction contractors toward workers for accidents occurring during construction activities. The prescribed insurance liability limit is generally VND 100 million per person per accident.

Legal basis: Decree No. 67/2023/ND-CP, as amended by Decree No. 220/2026/ND-CP, effective from July 1, 2026.

4. Compulsory Professional Liability Insurance for Notaries

Under the 2024 Law on Notarization, professional liability insurance for notaries is compulsory.

Notarization organizations are required to purchase professional liability insurance for their notaries in accordance with the law.

Legal basis: Law on Notarization 2024 and Decree No. 104/2025/ND-CP.

5. Compulsory Civil Liability Insurance for Oil Pollution from Certain Ships

Under Vietnam’s maritime legislation, certain ships carrying oil or other hazardous substances are required to maintain compulsory civil liability insurance of the shipowner for pollution damage when operating in Vietnamese port waters and Vietnamese sea areas.

Legal basis: Vietnam Maritime Code 2015 and relevant implementing regulations.

6. Compulsory Liability Insurance in Civil Aviation — Important Qualification

Under the new Law on Civil Aviation of Vietnam 2025, effective from July 1, 2026:

• Air carriers are required to maintain compulsory liability insurance or another form of financial security covering liabilities relating to passengers, baggage, cargo and delays.
• Aircraft operators are required to maintain compulsory third-party liability insurance for ground damage or another form of financial security.

Therefore, these should technically be regarded as mandatory financial security requirements, rather than an absolute requirement to purchase an insurance policy in every case.

Legal basis: Law on Civil Aviation of Vietnam 2025.

7. Nuclear Liability — Mandatory Financial Security, Not Necessarily Insurance

Under the Law on Atomic Energy 2025, the investor/operator of a nuclear facility must obtain and maintain insurance or another form of financial security to cover liability for nuclear damage.

Therefore, similar to aviation, this is more accurately classified as a mandatory financial assurance requirement, rather than a requirement to purchase insurance in all cases.

Legal basis: Law on Atomic Energy 2025, effective from January 1, 2026.

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