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1. OVERVIEW OF VIETNAM HEALTHCARE
AND MEDICAL DEVICE MARKET
EVBN WEBINAR
25TH MAY 2016
Dung Nguyen
Senior Business Consultant
dung.nguyen@ipsos.com

2. Contents
Vietnam healthcare system and infrastructure >> Medical device sector

3. US$210.2
Billion in GDP
10'11'12'13'14'15' 20'
US$2,251.3
in GDP per capita
ASEAN’s 6th largest
$
94+
Million people
14th largest population
Golden Demographic
70% of population aged in
working age category (15-64)
Male Female
11.6
Billion US$ of GDP
spent on healthcare 25
Hospital beds/ 10,000
habitants6.1%
33.6%
Urban population in
Vietnam
Hanoi
HCM

4. OVERVIEW OF VIETNAM’S HEALTHCARE &
MEDICAL EQUIPMENT SECTOR
BUILD • COMPETE • GROW

5. 5
Health Establishments by Regions and Key Cities in 2014
The 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. 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 River
Delta
Northern
midlands
and
mountain
areas
Northern
Central area
and Central
coastal area
Central
Highlands
South East Mekong
River Delta
Hanoi Thanh Hoa Nghe An Ho Chi Minh
City
Region Key cities
No.ofhealthestablishments
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 Facilities
71% of healthcare establishments are situated in Northern Vietnam.

7. 7
Hospital Infrastructure
Inadequate 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)
1,280
1,356 CAGR
18.6%
1,192 1,250
2.9%

8. 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.
IPSOSKNOWLEDGEANDEXPERTISE
Source: BMI
consulting.bc@ipsos.com
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
EURmn
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. 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. 10
14%
27%
5%5%13%
36%
2010
23%
23%
5%5%
14%
30%
2014
Consumables
Diagnostic Imaging
Dental Products
Orthopaedics &
Prosthetics
Patient Aids
Other Medical
Devices
€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. 11
Experiment with the latest and
most innovative technologies and
systems. 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 Consumers
Government-funded healthcare centers (hospitals, clinics and others) are considered the biggest purchaser of
medical equipment.

12. 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.

13. BUSINESS UNIT STRATEGY
COMPETITIVE INSIGHTS
GO-TO-MARKET
INNOVATION SCOUTING
PARTNER EVALUATION
SALES & MARKETING
OUR SOLUTIONS
Dung Nguyen
Senior Business Consultant
dung.nguyen@ipsos.com

14. 14
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& Insurance
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& Retail
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& Logistics
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15. 15
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