On the area of HCMC there are 295 flammable residential zones which are indanger of great fire causing huge damage due to being built with flammable materials, located in long alleys... amongst some manufacture establishments. According to statistics, the fires in residential areas every year account for 53% of the total cases of fire. High-rise buildings, gas and petroleum businesses...also pose great fire threat. According to fire prevention and fighting police, if there is fire in this area, human and property losses are unimaginably huge.
On 23/8 in HCMC, the conference �Combustion and explosion and solutions to protect properties for businesses� (*) was held in the context of many fires cases having happened causing more and more serious damage. According to statistics by HCMC Police Department of fire prevention and fighting, o­nly during the first six months of the year there took place 212 fire cases citywide, causing damage of nearly 70 billion dongs while the damage caused by combustion and explosion in 2006 was more than 90.4 billion dongs. This demonstrates that the damage caused by fire cases are increasing day by day. Senior colonel Tran Thanh Chau, Deputy Director of HCMC Police Department of fire prevention and fighting said: �Combustion and explosion accidents are a disaster to people, society and environment. Businesses buying combustion and explosion insurance is necessary and urgent, and in accordance with our current economy and integration trend�. According to the statistics by Insurance Institution (Ministry of Finance), from 2000-2006 there happened 11,795 fire cases nationawide, causing damage of more than 1,710 billion dongs. According to Mr Le Binh Hung, Deputy Director of Vietnam Commercial and Industrial Chamber, in reality the damage figure must be 15 times higher than the above mentioned o­ne. Although combustion and explosion dangers can threaten any businesses, companies, not every business is willing to buy combustion and explosion insurance. Representative from American International Assurance Company (Vietnam) Limited commented: �Foreign businesses consider combustion and explosion insurance as a mandatory investment fee, while Vietnamese o­nes regard it as a fee that can be saved�.

This is proved by the statistics of Vietnam Insurance Association: all over the country there are about 35,000 manufacture establishments in the category of buying combustion and explosion insurance as a necessity, but o­nly 20-30% do this. According to Mr Chau, in HCMC there are about 10,000 manufature establishments in this category, but so far the number of those who take part in buying combustion and explosion insurance is meagre. However, due to the fact that the regulation of compulsory combustion and explosion insurance has just been issued, it�s not yet the time to assert imminent punishment o­n these businesses.

According to Vietnam Insurance Association, the compensation for combustion and explosion damage during the past time has just been more than 600 billions, which accounts for 40% of the total damage. At the conference, many businesses expressed their concern over combustion and explosion insurance. Many businesses felt unfamiliar with this form of insurance even though Government Decision about combustion and explosion insurance was promulgated o­n 8/11/2006. Mr Tran Thanh Chau informed that HCMC Police Department of fire prevention and fighting would instruct businesses in the category of having to buy combustion and explosion insurance to self-check fire prevention and fighting safety and perform fire prevention and fighting safety conditions as stipulated. Moreover, the Department will have periodical inspection 4 times/year at businesses in great danger of combustion and explosion.

 (*) The conference was held by Vietnam Chamber of Commerce and Industry (VCCI), HCMC branch in coordination with HCMC Police Department of fire prevention and fighting and AAA Assurance Corporation. (According to Thanh ni�n)