OVERVIEW OF VIETNAM HEALTHCARE
AND MEDICAL DEVICE MARKETEVBN WEBINAR25TH MAY 2016
Dung NguyenSenior Business Consultant
Contents
Vietnam healthcare system and infrastructure >> Medical device sector
US$210.2Billion in GDP
10'11'12'13'14'15' 20'
US$2,251.3in GDP per capita
ASEAN’s 6th largest
$
94+ Million people
14th largest population
Golden Demographic70% of population aged in
working age category (15-64)
Male Female
11.6Billion US$ of GDP
spent on healthcare 25Hospital beds/ 10,000
habitants6.1%
33.6%Urban population in
Vietnam
Hanoi
HCM
OVERVIEW OF VIETNAM’S HEALTHCARE &MEDICAL EQUIPMENT SECTOR
BUILD • COMPETE • GROW
5
Health Establishments by Regions and Key Cities in 2014The level of facility investment, professional capacity, and complexity of treatment are the differentiating
factors for each healthcare facilities
Source: Statistical MoH report
Small Private Polyclinics (SPriPC)
Medium Private Polyclinics (MPriPC)
Private Specialized Clinics (PriSC)
District Polyhospitals(DPH)
Health Stations (HS)
Private Polyhospitals(PriPH)
Specialized Hospitals(SH)
Provincial Polyhospitals (ProPH)
Private Specialized Hospitals (PriSH)
Specific health problems. Public facility More popular in big cities. SPH is operated by a number of professionals including doctors and specialists
assigned by MoH, with very high level of investment in modern technologies
Specific health problems. Private facility Privately owned by one or a group of doctors or a medical group/corporation. SPH has specialized
equipment that can cure serious cases and perform complex surgeries
Various health problems. Private facility Privately owned by one or a group of doctors or a medical group/corporation. Some PHs are perceived as
better than public hospitals but more expensive and mostly not public insurance applicable
Various health problems. Public facility Present in every provincial unit with large number of beds and constructed in populous area. PH welcomes
hundred patient visits everyday, providing a broad range of treatment
Various health problems. Public facility Well-equipped state-owned facility with moderate to high capacity and public insurance applicability that
provides healthcare service to a large portion of community within an area The presence is deemed important as it helps to ease overcrowding of central / provincial hospitals
Specific health problems. Private facility Facility that is specialized in one field (otorhinolaryngology, obstetric, cardiology, etc) with modern
equipment (ultrasound device, X-ray device, etc) to perform complex diagnosis and treatment
Private facility. Able to treat in-patients MPP is moderately invested with equipment to perform higher diagnosis, treatment and minor surgeries
A few health problems. Private facility Simply equipped with 1 or 2 doctors in charge of treating patients with minor health problems such as flu,
coughing, stomachache, etc. SPP has flexible working hours and is convenient for quick health check-up
A few minor health problems. Public facility State-owned and present in every commune or ward. Physicians take main charge of diagnosing and
prescribing simple health problems
Public sector Private sector
Primary
Tertiary
Secondary
6
2,787 2,970
3,280
859 1,031
1,858
686 687 531 379
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Red RiverDelta
Northernmidlands
andmountain
areas
NorthernCentral areaand Centralcoastal area
CentralHighlands
South East MekongRiver Delta
Hanoi Thanh Hoa Nghe An Ho Chi MinhCity
Region Key cities
No
. of
hea
lth
est
ablis
hm
en
ts
Number of health establishments by regions and by key cities in 2014 (*)
• Hanoi, the capital, is expected to receive the largest share of the central funding for purchasing new and advanced medical devices, given its preferential budget allocation from the MoH.
(*) excluding private health establishments
Source: GSO
Structure of Healthcare Facilities71% of healthcare establishments are situated in Northern Vietnam.
7
Hospital InfrastructureInadequate number of public hospital to serve rising demand in healthcare needs, coupled with government
encouragement are driving the growth of private hospital
• Public and Private hospitals are not sharing the patients burden:• 40% capacities/facilities are under-utilizied• Public facilities are under constant overloaded
• Public hospitals overcapacity due to:• Affordable prices • Assessability• Lack of well-trained and experienced staff with the private sector
Source: MoH Report (2011-2015) and Ipsos Analysis 7
Private hospitals
7%
Public hospitals
93%
Patient Visits by Public vs. Private Hospitals 2014
Total patients visit = 153 Mn
91% 88% 88% 88%
9% 12% 12% 13%
2011 2012 2013 2014
Private
Public
Vietnam Hospital Classification & Growth (2011 – 2014)
1,2801,356 CAGR
18.6%
1,192 1,250
2.9%
8
Medical Equipment Market Value (2010 – 2019)Vietnam’s medical devices market has observed a stable growth to estimated €977.8 million in 2019 with a
CAGR projected around 7%, which is considered on of the fastest growing market in Asia.
IPSO
S KN
OW
LEDG
E AN
D EX
PER
TISE
Source: [email protected]
459.0
668.7 698.0 747.1 815.8
892.3 977.8
0
200
400
600
800
1,000
1,200
2010 2014 2015e 2016f 2017f 2018f 2019f
EUR
mn
Medical equipment market value, 2010-19f
85.1
43.5
14.2 7.2 2.6 2.1
0
20
40
60
80
100
Singapore Malaysia Thailand Vietnam Philippines Indonesia
EUR
Medical equipment market value per capita in 2015
9
• Consumables and diagnostic imaging segments are accounted for near half of the market.
• Dominated by imported goods with nearly 95% of the medical devices are from overseas, especially in high-end segments such as diagnostic imaging products. Local manufacturers can only meet the market demand for basic equipment such as hospital beds, rubber health products and disposable supplies.
23%
22%
5%5%
15%
30%
2014
25%
23%
5%6%
15%
26%
2019
Consumables
Diagnostic Imaging
Dental Products
Orthopaedics &Prosthetics
Patient Aids
Other Medical Devices
€668.7mn €977.8mn
Medical equipment market structure, 2014-19f
Source: BMI
Vietnam’s medical equipment sector is expected to record a 46% increase to reach nearly €1 bn in 2019 with nearly 95% of devices are imported
Vietnam’s Medical Equipment by Segments (2014 – 2019)
10
14%
27%
5%5%13%
36%
2010
23%
23%
5%5%
14%
30%
2014
Consumables
Diagnostic Imaging
Dental Products
Orthopaedics &ProstheticsPatient Aids
Other MedicalDevices
€437.8mn €631.3mn
Medical equipment’s import structure (2010-2014)
Medical equipment imports reached US$707.1 million in 2014 with Diagnostic Imaging and Consumables segments account for over 45% of the total export value. Singapore and Japan were the top two suppliers of medical equipment
to Vietnam in 2014
Vietnam’s Medical Equipment Import Structure (2014 – 2019)
Source: BMI
24.0%
19.2%
12.8%10.8% 10.6% 8.9%
7.0%3.1% 2.8% 2.8% 2.5% 2.5%
17.0%
0%
5%
10%
15%
20%
25%
30%
Vietnam’s medical equipment import by main countries in 2015
Total import value = €631.3mn
11
Experiment with the latest andmost innovative technologies andsystems. These end-users can be considered potential partners for EU investors to strategically market their products in Vietnam.
Major buyers but tend to purchase equipment from their country of origin.
Government-funded
hospitals, clinics and healthcare
centres
Foreign-owned and joint-venture
hospitals, clinics, and healthcare
centres
Local private hospitals
Medical education and
research institutions
Purchase the largest quantity of medical equipment (70% of the market). Funded by the Government, this group of buyers often look for advanced and brand name medical devices made in G-8 countries
Expected to show the strongest growth as a result of the development of private healthcare in Vietnam in order to compete with public and foreign-owned healthcare centres.
Profile of End ConsumersGovernment-funded healthcare centers (hospitals, clinics and others) are considered the biggest purchaser of
medical equipment.
12
Key Growth Drivers of Vietnam’s Medical Equipment Sector
Key Drivers
Increasing life expectancy
Modernizing public
healthcare facilities
Encouraging International
initiatives
A significant expected surge of the 60-79 age group, exposes the healthcare infrastructure to higher demands and potentially also leads to increased investments to meet these needs. Furthermore, the rapid urbanisation also facilitates the emergence of hospitals, reducing the access to healthcare service in economical-disadvantaged areas.
To achieve this objective, it is estimated that the Government will need to spend approximately €1.06 billion per year. In addition, the expansion of the private healthcare sector in Vietnam has been facilitated by the lifting of the ban on private practice in 1989. More than 200 private facilities are in operation across the country to cater to the increasing demands of the emerging middle class.
Some international initiatives have been launched to support Vietnam’s plans in the healthcare sectors. For example, the 2nd phase of the EU Health Sector Policy Support Programme (EU-HSPSP-2) or the bilateral agreements with South Korea, Japan and the EU. This creates a momentum for the increase of import and export of medical equipment, while also opening new avenues for domestic manufacturers.
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OUR SOLUTIONS
Dung NguyenSenior Business Consultant
14
Extensive Experience
EXPERIENCE IN A WIDE RANGE OF PRODUCT FIELDS
Agribusiness
Automotive
Energy
Construction
Consumer
Goods
Corporate
Services
Banking, Finance
& Insurance
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& Non-profit
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& Technology
Media &
Entertainment
Industrial
Real Estate
& Retail
Transport
& Logistics
15
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