Vietnam is undergoing demographic and economic transformations. The changes in demography and economy provide great potential for its healthcare sector. There are three key sub-sector to keep an eye on, namely medical equipment, pharmaceuticals, and digital healthcare.
With Vietnam healthcare market research, you can understand the country’s healthcare market better, which in turn allows you to formulate an effective market entry strategy.
Vietnam Healthcare Market Research: Medical Equipment
As the demand for high-quality health services in Vietnam rises, so is the growth of the medical equipment market. From 2016 to 2020, the growth rate of the market is forecasted to be 18-20%.
About 90% of medical equipment in Vietnam is imported from countries such as the US, China, Germany, Japan, and Singapore. Domestic enterprises account for the remaining 10% of the market share.
Since local production can’t meet the demand, the Vietnamese government encourages import by setting no quota restrictions and low import duties.
Public hospitals in the country suffer from a lack of sufficient medical equipment for surgery and ICU. In addition, the existing medical equipment is outdated and must be replaced.
Most medicines in Vietnam are imported. However, the number is not as high as medical equipment with about 55% of medicines being imported every year on average.
Vietnam relies on imports because most domestic companies don’t meet the EU-GMP or PIC/S-GMP standards to manufacture high-quality generic drugs. Most domestic companies also lack research and development capabilities.
About 70% of drugs in the country are sold through hospitals. The remaining 30% comes from pharmacies. The demand for drugs is increasing as the public’s concern for health and the number of private hospitals are growing.
The digital healthcare sector in Vietnam has amazing potential. About 70% of Vietnam’s population lives in rural or remote areas. Telehealth can help healthcare providers to provide patients with better access to quality healthcare and, at the same time, reduce costs.
The challenge of digital healthcare is that it relies on the development of Industry 4.0 technologies such as the internet of things, artificial intelligence, and 5G networks.
Not to mention digital healthcare in Vietnam is still in its infancy. It is not as attractive to investors as e-commerce or payments.
At the moment, digital healthcare is enjoyed mostly by higher-income patients as they are willing to pay more for convenient and high-quality healthcare services.
Medical equipment, pharmaceuticals, and digital healthcare present exciting opportunities for key players as there is a growing demand for high-quality health services in Vietnam. Our Vietnam healthcare market research can give you sound insight and high-impact solutions.