Market OverviewVietnam has the world's 14th largest population and is regarded as an important potential market for health services and products. Due to limited manufacturing capability, domestic pharmaceutical production meets just 40% of local demand, requiring the import of finished products. Since the first market opening in the early 1990s, most of the world's leading pharmaceutical suppliers have established direct representation (there are now 223 registered foreign pharmaceutical firms in Vietnam, eight JVs and 16 wholly-owned investments. The market for medical equipment and services reflects the poor level of funding available to the national health system. Much of the medical equipment in Vietnam has been funded by bilateral donors and by concessional financing. Although a parallel system of private clinics is emerging in urban Vietnam, most medical services in Vietnam are provided by the state run hospitals with very basic medical coverage from the health insurance system. While the government is not discouraging investment in the health sector, up to now, there are only a 6 private hospitals,1 joint venture hospital and a small number of international clinics. Some of these are supported by ODA. OpportunitiesGrowth in the pharmaceutical sector present export opportunities for Canadian bio-pharmaceutical / innovative and ethical products rather than generic & OTC products which are found throughout Vietnam under many international brands. Import of vaccine for children is currently in high demand. The best prospects in the medical equipment sector include imaging and functional diagnostics system such as ultra sound, basic X-ray equipment, basic radiology equipment, etc., all of which are more affordable for hospitals and clinics. Interested Canadian companies should work with a local company and monitor procurement prospects, including IFI funded projects in support for the medical equipment sector (i.e. the World Bank's National Health Support Project or the upcoming ADB's Health Sector Development Project). Market Access ConsiderationA local partner/distributor is important for companies seeking opportunities in the health sector in Vietnam. Distribution of products relies on the services of large-scale distributors that often have the advantage of established business relationships and networks. Canadian companies should be prepared to help local distributors with product registration and marketing strategies to raise product awareness in the local market. Vietnam remains a price-sensitive market for most goods. CompetitionPharmaceuticals have been mainly imported from Europe (France, UK, Switzerland, Germany) and the United States, as well as from Korea, India and Canada. Many well-known international firms with integrated distribution operations are well-established in Vietnam. Main suppliers in medical equipment are from Germany and the United States, and from donor countries.
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