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Vietnam healthcare-market-overview-webinar-presentation (1)

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This presentation figure out the trend of Vietnam Healthcare Market

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Vietnam healthcare-market-overview-webinar-presentation (1)

  1. 1. Vietnam Healthcare Market Overview 10 December 2015
  2. 2. Australia Unlimited Today’s webinar agenda Introduction of speakers The shift in ASEAN market – AEC & TPP impact Vietnam healthcare market overview Outline opportunities in hospital sector Introduction to Medical Science & Health Services Mission to Vietnam – July 2016 Q & A 2
  3. 3. Australia Unlimited Introduction Ms Janelle Casey – Senior Trade Commissioner, Austrade Vietnam Mr Dong Pham – Vice Chairman, Vietnam Private Hospital Association Ms Minh Cao – Business Development Manager, Austrade Vietnam Ms Milena Bliss – Senior Trade Adviser – International Health, Sydney Australia 3
  4. 4. Why Vietnam
  5. 5. Australia Unlimited Vietnam – the next growing healthcare market in ASEAN 5 Large population, rapid urbanization & increasing spending power Increasing demands for quality healthcare Strong economic growth Increasing healthcare expenditure Next growing medical devices/ pharmaceuticals manufacturing industry Global shift in ASEAN markets
  6. 6. Australia Unlimited 6 The shift in ASIAN market: impacts from AEC
  7. 7. Australia Unlimited Opportunities in Vietnam Import of services for physicians Next in production of and R&D pharmaceutical and medical devices Manufacturing base for medical devices AEC OBJECTIVES Free flow of Goods Free Flow of Services Free Flow of Investment Free Flow of Capital Free flow of skilled labor AEC impacts to healthcare industry 7 Source: BMI, Frost & Sullivan Harmonised requirements for inter-ASEAN licensing & permits for practice Removed or lowered tariff / tax rates Expansion & exporting of services such as medical & technical expertise Expansion of pharmaceutical & medical device manufacturers & distributors Easier medical business expansion & transfer of capital
  8. 8. Australia Unlimited TPP Outcomes for Australia in the health sector 8 Elimination of duties Greater access & operating conditions Improve competition level of Australian pharmaceutical & medical devices manufacturers Ability to participate in tenders for government procurement contracts For further information, visit www.dfat.gov.au/fta/tpp/ SINGAPORE MEXICO TPP Parties JAPAN VIETNAM MALAYSIA BRUNEI AUSTRALIA CANADA USA PERU CHILE
  9. 9. VIETNAM HEALTHCARE MARKET
  10. 10. Australia Unlimited Year 2014 Vietnam – the next healthcare market in ASEAN Total healthcare spending 90% Medical devices are imported Hospitals Year 2020e 91million 97million Large & fast growing Population 33.6% 36.9% URBAN RATE 19.5% 24.9% 4.9% 5.2% 13.3% 32.3% Consumables Diagnostic Imaging Dental products Orthopedics & prosthetics Patient aids Others 22.3% 25.4% 5.0% 5.9% 12.0% 29.3% US$13 billion Year 2015 Year 2015 Year 2020e Year 2015 Year 2020e Growing at 13.4% Growing at 1.05% Year 2014 Year 2020e 1,090 1,204 200175 Public Private 7.9 Doctors per 10,000 habitants 25.1 Hospital beds per 10,000 habitants 10 US$24 billion Pharmaceuticals market value US$3.8 billion US$7.3 billion Growing at 14.1% Year 2014 Year 2019e 5.8% GDP – highest in ASEAN 4th largest in ASEAN 14th largest in the world Source: BMI, Frost & Sullivan, World Bank
  11. 11. Australia Unlimited Where we see opportunities 11 Tele-health/ Tele- medicine Hospital management & patient administration systems Electronic health record Research excellence in medical products, technologies, Robust regulatory regime Sophisticated domestic pharmaceutical & health care system Global leader in medical science & technologies: breakthrough products. Extensive research expertise in developing new therapeutics for tropical diseases A global hub for medical research Underdeveloped healthcare system PPP projects Healthcare infrastructure Technology transfer projects Drugs & vaccines development / R&D Emergency response Diseases management Human resources Health IT system Hospitals & clinic management Education & training NICHE medical & surgical equipment & devices General hospital supplies, laboratory equipment
  12. 12. Australia Unlimited Vision to turn Vietnam into a pharmaceuticals production hub in the region To have 80% of domestic demand met by local producers by 2020, up from ~ 50% currently Focus on drugs, vaccines, blood and other biologics products Calling investment from both domestic and foreign organizations Plans to invest US$241 million in eight projects within the local drug manufacturing industry 12
  13. 13. Australia Unlimited Pharmaceutical sector – risky but promising 13 Top countries for imported pharmaceuticals in Vietnam - 2012 80% of pharmaceutical are imported Top quality drugs are mainly produced by foreign players Legislation mandates using a local partner for importing & product registration Government focuses on the production of generic pharmaceutic als Highly- fragmented distribution Large market size Joint partnerships will provide quicker market access Tender regulations favor local manufacturers Increasing regulation & compliance level Low market entry barriers & Self-medicating culture Universal Health Coverage drives the needs for production of generic pharmaceuticals National drive to produce high-quality pharmaceuticals Key drivers and trends FRANCE1th 2nd INDIA US$ 235.9 mil US$ 230.5 mil 3rd SOUTH KOREA US$ 164.4 mil 4th GERMANY US$ 143.4 mil 5th ITALY US$ 93.9 mil Increasing use of health supplements Increase in the use of modern, self-medication & traditional medicine to self-diagnose Increasing competition between foreign & domestic companies Increasing local support for domestic products Source: BMI, Frost & Sullivan
  14. 14. Australia Unlimited Medical technology sector - fragmented 14 Fragmented Distribution Availability of many diversified products Multiple stakeholders for decision making Relationship- driven business High focus & resources required to sell medical devices Limited exclusive distributors Small family- run businesses Distribution channels Regional Segmentation Regional Provincial Product/ Operational Segmentation Distributors Importers & Distributors 4th party logistics companies National
  15. 15. Australia Unlimited … but poised for growth and change 15 ASEAN Economic Community & ASEAN Medical Device Directive Government vision to become a regional pharmaceutical generics production base by 2020 Increasing investment in hospital sector from both domestic & international investors Biotech will assist the development of vaccines, higher-quality pharmaceuticals, gene therapy, and IVF technology Increasing activities of telemedicine in consultation, surgery, imaging, and cardiology Increase in in-vitro diagnostics and imaging equipment Key drivers and trends 90% of medical devices are imported Attractive manufacturing base Largely focused on low-end medical consumables Low manufacturing costs Med Tech is in its early stage of manufacturing Low market entry barriers Growing demand for high quality health services
  16. 16. Hospital sector Mr The Dong Pham Vice Chairman Vietnam Private Hospital Association
  17. 17. Australia Unlimited Developing public hospital sector is a priority Market drivers Healthcare expenditure is ~ 6% of GDP, highest in ASEAN region Financial resources from WHO to develop healthcare infrastructure Government reducing barriers to new hospital set-ups 2011–2015 eHealth Plan to improve health IT applications Aging society with decreasing birth rates Collaboration between local manufacturers and foreign companies for local generics or low- end medical devices Collaboration with distributors for joint ventures to move the distributor up the value chain Expansion or joint ventures in both urban and rural areas; data warehousing to increase efficiency & data tracking between vendors and hospitals Systems adoption to link up private and public hospital information systems. Aged care services or IVF specialty clinics or products. Opportunities 17
  18. 18. Australia Unlimited While private hospital sector continues to grow 18 Growing sector due to overcrowding issue in public hospitals Increasing IT infrastructure development Demand for private, affordable healthcare services Autonomy to purchase directly from distributors as Tender is not required Government tax incentive for new healthcare service facilities Low occupancy rates at some hospitals can lead to closure High demands for training in hospital management Collaboration with public & private hospitals for specialised services Opportunities for aged care services to support the aging population Forecasted CAGR of 13.4% to 2020
  19. 19. Australia Unlimited Via foreign investments & privatisation process The Decree 93/NQ-CP on “Some mechanisms and policies to develop health care” - approved on 15 December 2014, facilitates cooperation between public and private health care sectors Public hospital privatisation in Vietnam: 1st privatisation of public hospital:The Vietnam Central Transportation Hospital, The cooperation between City International Hospital and Cho Ray Hospital Foreign medical suppliers are able to provide services via 100% foreign-invested hospitals JV with Vietnamese partners Business cooperation contracts with local medical service providers PPP agreements allow doctors to work in both public and private healthcare facilities JV example Canadian Triple Eye Infrastructure Corp & Dai An JSC Co. 19 PPP & Hospital privatisation Foreign Investment
  20. 20. Australia Unlimited PPP projects in hospital infrastructure development Project Location Investment capital (US$) Investment model Project Governance 1 Obstetrics – paediatrics hospital Binh Dinh 24 mil PPP Binh Dinh Department of Planning and Investment 2 Ha Tinh obstetrics – paediatrics hospital Ha Tinh 17 mil PPP Ha Tinh Department of Planning and Investment 3 International general hospital Gia Lam, Hanoi 200 mil PPP Ha Noi Department of Planning and Investment 4 Phu Xuyen General Hospital Phu Xuyen, Hanoi 161 mil PPP Ha Noi Department of Planning and Investment 20
  21. 21. Australia Unlimited 21 SAIGON ITO HOSPITAL GROUP
  22. 22. Australia Unlimited Demands for healthcare in Vietnam are unmet Long-term potentials in medical technology market • Driven by the national initiative for local drugs & medical devices manufacturing • AEC & TPP in place • Strong foreign investment Vietnam may become the generic drugs manufacturing hub in the region • Government focus sector • Low-cost production & competitive environment • Lower business boundaries due to AEC & TPP Vietnam – a market full of potentials • Hospitals overcrowding • Under-served rural population • Poor adoption of technology • High-quality drugs are mainly imported 22
  23. 23. Australia Unlimited Medical science & health services mission to Vietnam 23 Led by Professor Ian Frazer Opportunities to showcase • Products • Equipment • Technology • Systems • Services, education and research Obtain market insights, first-hand market understanding Increase brand awareness Chances to establish connections with • Industry key stakeholders • Potential customers, distributors and partners • Key market players • Education and training institutions Site visits, business matching activities, net working functions, research workshop Leverage the Australian government badge Hanoi & Ho Chi Minh City 18th to 22th July 2016 Develop business & collaboration opportunities
  24. 24. CONTACTAUSTRADE In Australia: 13 28 78 info@austrade.gov.au In Vietnam: +84 8 3827 0600 vietnam@austrade.gov.au www.austrade.gov.au/Vietnam www.exportawards.gov.au www.australiaunlimited.com Disclaimer: Austrade does not endorse or guarantee the performance or suitability of any information introduced in this presentation or accept liability for the accuracy or usefulness of information contained here within. Please use your commercial discretion to assess the suitability of any business introduction or goods and services offered when assessing your business needs. Austrade does not accept liability for loss associated with the use of any information and any reliance is entirely at the user’s discretion. This presentation is copyright and cannot be reproduced without the prior permission of the Australian Trade Commission.

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