behind . Most of the hospitals , clinics and diagnostic labs are government owned . The government has invested heavily for the up gradation of the healthcare system in the country but the medical devices at most of the hospitals are old . With the decentralization of the healthcare sector , more hospitals are coming up and the existing ones are being upgraded . There is a huge opportunity in front of medical device companies to capitalize and expand into the Vietnamese market . The market has been majorly dominated by diagnostic imaging products , contributing ~% ( USD ~ million ) while consumable equipment contributed around ~% ( USD ~ million ) to the overall medical devices market . The large percentage of the medical devices was also contributed by orthopedic appliances & implants .
Pharmaceuticals Market
Vietnam has one of the fastest growing pharmaceutical markets in Asia . One of the main reasons for this is the significantly high population of the country which is entering the ageing stage at a very fast pace . With the growth of the economy the average income of the middle class has also increased and so has the demand for pharmaceutical products . The overall size of the pharmaceutical market has increased with a CAGR of ~% from USD ~ billion in 2012 to USD ~% in 2017 . The government through its policies has tried to address the increasing demand of pharmaceutical products in the country , however there is a huge room for growth . Similar to the medical device market , the pharmaceutical market in Vietnam is also highly dependent on imports . Around ~% of the total pharma products consumed in the country are imported . Increasing rate and prevalence of lung and liver cancer , TB , HIV , respiratory , cerebrovascular and heart diseases among the growing population of the country has created high demand for generic and patented drugs . The pharmaceutical companies in the country mainly manufacture generic drugs by importing raw material from other countries . In context of therapeutic drugs , majority of the demand is to treat diabetes , respiratory and cardiovascular diseases . However to develop the domestic pharmaceutical sector the government has initiated efforts to streamline the Foreign Direct Investment ( FDI ) into the industry . Foreign companies cannot directly enter the Vietnamese market ; instead they need to partner with an indigenous company to distribute their products . The biggest pharmaceutical firms in the country are Hau Giang Pharmacy , Traphaco , Domesco , IMEXPHARM , and OPC .
Hospitals Market
Vietnam is in the phase of experiencing a structural change in hospital industry . Currently the country is dominated by the presence of government run hospitals and commune health stations . There are around ~ hospitals and ~ commune health clinics in the country out of which ~% are run by the government . However , in 2014 the government announced the plan to deregulate the hospital in order to support the already overburdened public hospitals in the country . Since liberalization a number of private hospital have already come up in the country