The Vietnam healthcare sector presents exciting opportunities for stakeholders. The aging population, fast-growing middle class, and rapid urbanization increase the demand for high-quality services. There is also digital healthcare, a sub-sector jumpstarted by the COVID-19 pandemic.
An in-depth analysis by Vietnam healthcare consulting experts can help you understand the Vietnam healthcare market better and formulate an effective market entry strategy.
Vietnam Healthcare Consulting Market Overview
In 2021, the GDP of Vietnam is approx. USD 368 billion with a GDP per capita of USD 3,694.02 thus making it a lower-middle-income country. Vietnam’s middle class is forecasted to grow rapidly, accounting for 26% of the population by 2026.
The changes in demographic and economic landscapes lead to the increasing demand for high-quality healthcare services. The country’s healthcare expenditure per capita is projected to grow 9.2% annually from 2009 to 2025. By 2025, it is expected to reach USD 262, almost 6% of the country’s GDP.
Public hospitals account for 86% of the total hospital in Vietnam. Public and private hospitals in Vietnam are undergoing upgrades of their facilities. Moreover, hospitals in the country are opening new departments for specialty treatment.
As local production can’t meet the demand, over 90% of medical equipment in Vietnam is imported. Local manufacturers have less than 10% of the market share. Vietnam also imports most of its medicines, accounting for 55% of the total.
Most medical equipment is imported, with major suppliers from the US, China, Germany, Japan, and Korea. The Vietnamese government sets no quota restrictions and low import duties for importing medical equipment. This makes it easy for key players to import medical equipment to the country.
There are four main classes of medical equipment buyers. The largest ones are government-funded hospitals, which account for 86% of the market share. Foreign-owned hospitals and clinics are also large buyers, but their facilities in general buy supplies from their sponsoring country.
On average, 55% of medicines in the country are imported each year. Vietnam imports medicines mainly because most domestic companies don’t meet the EU-GMP or PIC/S-GMP standards and lack research and development capabilities.
About 70% of the drugs in the country are sold through hospitals while the other 30% comes from pharmacies. The growing public concern and the increasing number of private hospitals lead to rising demand for drugs.
There are various opportunities present in the Vietnam healthcare sector. From medical equipment and devices to digital healthcare. If you want to know more about the Vietnam healthcare sector, our Vietnam healthcare consulting experts can provide you with sound insights and high-impact solutions.
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