Frost & Sullivan - Economic 360 for Vietnam - Growth Prospects and Emerging Opportunities

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Frost & Sullivan - Economic 360 for Vietnam - Growth Prospects and Emerging Opportunities

  1. 1. Economic 360 for Vietnam:Growth Prospects and Emerging Opportunities Rhenu Bhuller Vice President Frost & Sullivan Asia-Pacific Asia-October, 2012 rbhuller@frost.com
  2. 2. Vietnam—Country Overview331 698 km2 54 officially Hanoidivided into 59 recognized ethnicprovinces and 5 groups, with Viet Vinhprovincial level comprising 86% ofmunicipalities the total population Hue Da NangThe 14th most Quy Nhonpopulous country in Ho Chi Urbanization rate to Minh Citythe world with a grow about 3.3population of 91.5 percent annually,million (est. July, reaching an urban2012) and growth population of 30rate of 1.1 percent million in 2014.in 2011.One of world’s top exporters of rice, coffee, cashew nuts and black pepper.Not for Distribution 2
  3. 3. Macro-Economic Indicators, 2011Not for Distribution 3
  4. 4. Macro Economic Indicators: Healthcare Healthcare Indicators: Vietnam, 2010 Healthcare Indicators 2010 Population (M) 88.3 Population Growth Rate (%) 1.0 Birth Rate (per 1,000) 17.0 Mortality Rate (per 1,000) 6.8 Life Expectancy (Female) (years) 74.7 Life Expectancy (Male) (years) 69.5 Key Features • Vietnam’s population size is expected to expand about 9.2 percent from 2006 to 2014, and is likely to grow 1.0 percent annually from 2010–2014. • The increase of life expectancy (73.9 years in 2006 to 74.7 years in 2010) have led to an increase in aging population. Source: Datamonitor, Worldbank, http://vietnam.unfpa.org, Frost & Sullivan aNot for Distribution 4
  5. 5. Macro Economic Indicators: Vehicle OwnershipNot for Distribution 5
  6. 6. One of the world’s fastest-growing economies - 2010GDP growth rate @ 6.78%, GDP per capita at ~ US$1,200 Vietnam’s economy has witnessed a structural change from a planned economy to a market-oriented economy. Between 2000 and 2008, several reforms were taken to liberalize and open up the economy to foreign investment.Not for Distribution 6
  7. 7. Government Development Plan: Key SectoralObjectives of the FYP (2006-2010)Not for Distribution 7
  8. 8. Vietnam’s total export revenue in 2010 reached US$71.6 billion, a 25.5% increase compared with thatof 2009 IMPORTS EXPORTS15 1510 105 5 00 2010 (US$Billion) 2009 (US$Billion)Not for Distribution 8
  9. 9. FDI in Vietnam has increased considerably. In 2010, foreigninvestors registered capital of ~ US$18.6 billion, in whichthe actual disbursed capital came to $11 billionNot for Distribution 9
  10. 10. Opportunities in VietnamNot for Distribution 10
  11. 11. Manufacturing InvestmentNot for Distribution 11
  12. 12. Manufacturing: Business OpportunitiesNot for Distribution 12
  13. 13. ICT: A developing market in modern VietnamNot for Distribution 13
  14. 14. ICT DevelopmentNot for Distribution 14
  15. 15. Telecommunications MarketNot for Distribution 15
  16. 16. ICT Industry Business Opportunities, 2010-2013Not for Distribution 16
  17. 17. Tourism and AviationNot for Distribution 17
  18. 18. Tourism & Aviation Sector: Business OpportunitiesNot for Distribution 18
  19. 19. Energy: Oil and GasNot for Distribution 19
  20. 20. Energy: Key Future ProjectsNot for Distribution 20
  21. 21. Energy: Government plans and targetsNot for Distribution 21
  22. 22. Renewable EnergyNot for Distribution 22
  23. 23. Energy Industry: Business OpportunitiesNot for Distribution 23
  24. 24. Infrastructure: Building Construction MarketNot for Distribution 24
  25. 25. TransportationNot for Distribution 25
  26. 26. Transport Infrastructure: Vietnam has a256,231 km of Road NetworkNot for Distribution 26
  27. 27. Transport Infrastructure: Future DevelopmentsNot for Distribution 27
  28. 28. Planned investment in mass transitNot for Distribution 28
  29. 29. Infrastructure: Business OpportunitiesNot for Distribution 29
  30. 30. Vietnam: Health Care Delivery System Healthcare Delivery System: Vietnam, 2010 Government Professional Units under Ministry •Curative:30 hospitals with beds MINISTRY OF HEALTH •Preventive:17 institutes or centres •Quality Control: 5 institutes or centres Healthcare services in •14 Department and Administration •The Cabinet •Training:14 schools or colleges Vietnam are •Centre for health education and communication •Inspectorate :17 units dominated by the public sector and as of Provincial People’s Committee 2009, approximately Professional Units under the PHS 93.0 percent of PROVINCIAL HEALTH •General and specialized hospitals for curative care hospitals were public. SERVICE •Preventive Health Centres •Office •Quality Health Centres Public sector offers •Inspectorate •Training Middle Level Schools or Colleges •Centre for health education and communication healthcare servicesPeople’s Committees through four tiers: at District commune, district, PROVINCIAL HEALTH •District General •District Preventive provincial, and central. SERVICE hospitals Health Centres The Ministry of Health •Office •Clinics •Inspectorate (MOH), which is part of the central tier, People’s Committees at Communes handles health policies and administration. COMMUNAL HEALTH Village Health Workers CENTRES •Head •Healthcare Workers Source: Department of Health, Vietnam; Frost & Sullivan analysis.Not for Distribution 30
  31. 31. Healthcare Expenditure Government and Private Expenditure on Health: Vietnam, 2006– 2012 9.00 Healthcare Expenditure 8.00 7.00 6.00 ($ Billion) 5.00 4.00 3.00 2.00 1.00 0.00 2006 2007 2008 2009 2010 2011 2012 Private Expenditure 2.63 2.98 3.98 4.19 4.53 4.77 5.02 Government 1.29 1.99 2.05 2.52 2.76 3.01 3.25 Expenditure• Driven primarily by the states healthcare insurance scheme, the share of total healthcare spending accounted for by the public sector will continue to rise.• The share of total out-of-pocket private healthcare expenditure is expected to fall in the coming years. According to WHO, in 2008, 90.0 percent of total private healthcare expenditure was out of pocket. However, due to growing concerns over long-term health protection, private healthcare insurance will become increasingly popular, a trend that will be supported by a wider array of health insurance options and greater prosperity in urban areas. Source: WHO, Frost & Sullivan analysis. Not for Distribution 31
  32. 32. Healthcare: Business Opportunities In Vietnam, new health service facilities are expected to be charged an enterprise income tax of 10 percent rather than the previous 28 percent. The quality of public hospitals in Vietnam is likely to improve following the establishment of private hospitals by Singapore-based Thomson International and Pacific Healthcare, Malaysia-based Columbia Asia, and the French Hospital of Hanoi, owned by the French company Eukaria S.A. The Vietnamese government’s healthcare development plan, extending to 2020, aims for a doctor- patient ratio of 8:10,000, pharmacists of 2:10,000, and 25 hospital beds per 10,000 patients. Vietnam’s healthcare expenditure will grow over the next five years with its healthcare spending as a percent of GDP surpassing most ASEAN countries and growing up to 8.3% of the GDP in 2014. The Vietnamese government aims to modernize traditional medicine by 2020. According to Ministry of Health, hospitals that offer traditional alternatives to patients will receive new equipment in 2015 Source: Frost & Sullivan analysis.Not for Distribution 32
  33. 33. Case Study: Unilever Vietnam – Key Learningsfor Success LONG TERM LOCAL PARTNERSHIPS SKILLS TRANSFER INVESTMENT NATIONAL PRIORITIES BEYOND URBANNot for Distribution 33
  34. 34. Follow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitter http://www.facebook.com/FrostandSullivan http://www.linkedin.com/companies/4506 http://www.slideshare.net/FrostandSullivan http://twitter.com/frost_sullivanNot for Distribution 34
  35. 35. Additional Information Donna Jeremiah Rhenu Bhuller Director Vice President, Healthcare Practice Corporate Communications, Asia Asia Pacific Pacific Shivaji.das@frost.com djeremiah@frost.com Tel: +61 (02) 8247 8927 Carrie Low Jessie Loh Manager Executive Corporate Communications, Asia Corporate Communications, Asia Pacific Pacific jessie.loh@frost.com carrie.low@frost.com Tel. (65) 6890 0942 Tel. (603) 6204 5910Not for Distribution 35

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