Aviva has acquired VietinBank's 50% shareholding in the life insurance joint venture VietinBank Aviva Life Insurance Limited.
Aviva has also signed a new distribution agreement with VietinBank to sell life and health insurance products through VietinBank's network of over 1,100 branches, the second-largest in the market.
Aviva said that as a result of the transaction, Aviva Vietnam was now a wholly owned subsidiary of Aviva with a key focus on growing the business across all key distribution channels.
Aviva said Aviva Vietnam was founded in 2011 and had built a strong presence in the market, becoming a top ten life insurer by premium.
It added: "Vietnam is an attractive insurance market with double digit life premium growth in the past three years and one of the world's lowest life insurance penetration levels, at less than 1% of GDP.
"The insurance industry is expected to benefit from the country's projected GDP growth of more than 6% annually over the next three years."
Aviva Asia executive chairman and global chairman of Aviva Digital, Chris Wei, said: "With Aviva's insurance and digital expertise and a strong partnership with a leading bank, we are optimistic about our growth prospects in Vietnam.
"We have developed a deep and successful relationship with VietinBank and will continue to build on our strong foundations."
At 9:11am: (LON:AV.) Aviva PLC share price was +1.5p at 508p