Prudential sells investment-linked product in Vietnam

HANOI, Jan 18 (Reuters) - U.K. insurer Prudential Plc (PRU.L) said on Friday it would offer investment-linked insurance in Vietnam to catch opportunities in the strengthening financial markets of the fast-expanding economy.

Prudential Vietnam Assurance won a licence from the Finance Ministry on Tuesday for the product, the first in the country that offers life insurance and savings and investment at the same time, it said in a statement.

Investment-linked products, popular in Europe, North America and elsewhere in Asia, allows customers to choose the premium and the sum assured as well as from different investment funds.

Prudential, which also operates fund management PRUBF1.HM in Vietnam, said it has created five fund options to help customers invest in equities and bonds.

Vietnam's insurance sector has grown rapidly in recent years as the economy has grown around 8 percent in each of the past four years. The government aims to accelerate growth to 9 percent this year after an expansion of 8.48 percent in 2007.

"It is an ideal time for Prudential to launch this product as the country's economy continues to achieve sustainable high growth, and while financial markets and the investment environment strengthens to provide growth opportunities for the future," Prudential Vietnam Chief Executive Binayak Dutta said in the statement.

The country's World Trade Organisation membership boosted the insurance sector's growth last year. Non-life insurance premiums jumped more than 30 percent to 8.35 trillion dong ($520 million) and life insurance rose 12 percent to 9.5 trillion dong. (Reporting by Ho Binh Minh; Editing by Michael Urquhart)