Surety bond is a type of guarantee in which the Insurance Company (The Surety) basing on its reputation and financial capacity comes in to written commitment with Obligee (project owner) that the Obligor (contractor) is capable of undertaking the underlying contract, otherwise The Surety will indemnity to the Obligee against any losses resulting from the failure of the Obligor to perform or fulfill the obligations as specified in the underlying contract. Under that circumstance, The Surety will recover paid claims from the Obligor.

Type of surety bond

BIC provides the following types  of bond insurance:

- Bid bond: covers for risks that may occur to the Project Owner  when the Contractor has won the bid but does not sign the contract or withdraws his name from the list of bids while the bidding  period is still valid. 

- Advance payment bond guarantees the refund of the advance paid to the contractor in case the contractor fails to perform the obligation(s) stipulated in the contract.

- Performance bond protects the Project owner from the loss that is incurred when a contractor has not fully performed his duty specified in the contract.

- Warranty bond guarantees the contractor’s maintenance obligation during a specified guarantee period.


* BIC is seen as the most advantageous insurance company in providing surety bond thanks to following reasons:

- To be a member unit of BIDV – owned enterprise with the chartered capital of 500 billion VND, BIC is full of financial capacity to fulfill financial obligations with the Obligee. Additionally, BIC gains strong support from well-known professional reinsurance companies in this field which are ranked by international credit rating organizations such as S&P, AM Best and Fitch.

- BIC staffs have experience  in financial analysis, project appraisal and underwriting Bond insurance.

- BIC is a founder member of the AGCIA. The association's purposes are to promote guarantee and credit insurance services, instructing, training, and to improve business partnership between the Association's members so that to develope the region's insurance industry, in general, the guarantee and credit insurance industry, in particular, and thereby contributing to the economic advancement and overall welfare of Asia.