Market Research Reports - Ken Research Vietnam Healthcare Market | Page 2

is witnessing substantial growth, however the medical devices market in the country has lagged
behind. Most of the hospitals, clinics and diagnostic labs are government owned. The
government has invested heavily for the upgradation 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