Workers package pharmaceuticals at a factory (Photo: VNA) HCM City (VNS/VNA)– Vietnam’s medical equipment and pharmaceutical markets have seen double-digitgrowth in recent years and that momentum would continue, making the countryincreasingly attractive to foreign investors, experts have said.
According to Business Monitor International, Vietnam’s health care expenditurewas estimated at 16.1 billion USD in 2017, representing 7.5 percent of its GDP.The figure will grow at 12.5 percent a year to 22.7 billion USD by 2021, itsaid.
It also predicted double-digit growth in the next few years for the medicalequipment and drug markets.
Vo Tan Thanh, Vice Chairman of the Vietnam Chamber of Commerce and Industry(VCCI), said the pharmaceutical industry had seen two-digit growth in recentyears and that would continue until 2022.
“The demand for quality health care is growing every year with rising incomesin Vietnam. Moreover, the changing disease patterns with the inexorableincrease in the elderly population of over 60 years will also contribute togreater healthcare spending in Vietnam.
“Although the domesticpharmaceutical industry has made great progress, it only meets 52.5 percent ofdemand.”
Domestic production consists of mostly generic drugs produced for domesticconsumption and outsourcing for foreign enterprises.
“On average, around 60,000 tonnes of pharmaceutical materials are consumed eachyear, of which 80-90 percent is imported, mainly from China and India.”
Drug imports cost 2.8 billion USD in 2017, up10 percent from 2016, and 3 billion USD last year, he said.
“Therewill be higher demand for affordable medicines as well as sophisticated medicaldevices and equipment.”
Hua Phu Doan, Vice Chairman and General Secretary of the HCM City MedicalEquipment Association, told a recent event the medical equipment market hasbeen growing 18 percent in recent years, with imports accounting for more than90 percent.
Vietnam buys mainly diagnostic imaging equipment such as X-ray, ultrasound,magnetic resonance imaging and computed tomography scanners and equipment usedfor surgery, endoscopy, sterilisation, testing, and medical waste treatment.
The market is expected to grow by over 20 percent annually on the back of Vietnam’shigh economic growth, he said.
Hospitals and clinics will have greater demand for modern medical equipment toreplace obsolete equipment. Besides, there are more hospitals, clinics, andbeauty salons in the pipeline, which will create additional demand for medicaldevices.
K Srikar Reddy, the Indian Consul General to HCM City, said Vietnam is rapidlyemerging as a medical tourism destination in the region.
Last year nearly 15.5 million foreigners visited the country, many for medicaltreatment, and many health care facilities have sprung up to serve theseinternational patients, he said.
Many Indian firms are keen on the Vietnamesemarket and want to develop beneficial long-termbusiness relationships in the pharmaceuticals, medical and hospital sectorswith Vietnamese partners, he said.
To help local professionals keep abreast of new technologies and drugs and foreignexhibitors find distributors and business partners in Vietnam, ADPEX Joint Stock Company has collaboratedwith the Vietnam Pharmaceutical Companies Association and Vietnam MedicalProducts Import – Export Joint Stock Company to organise Pharmed &Healthcare Vietnam expo in HCM City from September 11 to 14.
To be held at the Saigon Exhibition and Convention Centre, Pharmed &Healthcare Vietnam 2019 has attracted exhibitors from countries and territorieswith a developed health care sector like Germany, France, the Czech Republic,Canada, the Republic of Korea, Japan, China, Pakistan, Italy, Singapore,Thailand, Hong Kong and Taiwan.
The exhibition will have 600 booths showcasing a wide range of the latestpharmaceutical products, drug manufacturing and packaging machinery, diagnosticequipment, healthcare and rehabilitation equipment, surgical instruments,dental and ophthalmological and aesthetic equipment and products.
It will also feature a series of conferences and seminars chaired by nationaland international experts.-VNS/VNA
VNA
