Download - Vietnam Healthcare Market
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Vietnam Healthcare Market Overview10 December 2015
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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 toVietnam – July 2016
Q & A
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Introduction
Ms Janelle Casey – Senior Trade Commissioner, AustradeVietnam
Mr Dong Pham – Vice Chairman, Vietnam Private Hospital Association
Ms Minh Cao – Business Development Manager, AustradeVietnam
Ms Milena Bliss – Senior Trade Adviser – International Health,Sydney Australia
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Why Vietnam
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Vietnam – the next growing healthcare marketin ASEAN
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Large population, rapid urbanization & increasingspending power
Increasing demands for quality healthcare
Strong economic growth
Increasing healthcare expenditure
Next growing medical devices/ pharmaceuticalsmanufacturing industry
Global shift in ASEAN markets
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The shift in ASIAN market: impacts from AEC
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Opportunities inVietnam
Import of services forphysicians
Next in production of
and R&Dpharmaceutical andmedical devices
Manufacturing basefor medical devices
AECOBJECTIVES
Free flowof Goods
Free Flowof
Services
Free Flow ofInvestment
Free Flowof Capital
Free flowof skilled
labor
AEC impacts to healthcare industry
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Source: BMI, Frost & Sullivan
Harmonised requirementsfor inter-ASEAN licensing &permits for practice
Removed or lowered tariff /tax rates
Expansion & exporting ofservices such as medical &technical expertise
Expansion of pharmaceutical & medicaldevice manufacturers &
distributors
Easier medical businessexpansion & transfer ofcapital
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TPP Outcomes for Australia in the health sector
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Elimination of duties
Greater access & operating conditions
Improve competition level of Australianpharmaceutical & medical devicesmanufacturers
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
PERUCHILE
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VIETNAM HEALTHCAREMARKET
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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 RATE19.5%
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$13billion
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 10,000habitants
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US$24billion
Pharmaceuticals market value
US$3.8billion
US$7.3billion
Growing at 14.1%
Year 2014 Year 2019e
5.8% GDP
– highestin ASEAN
4th largest inASEAN
14th largestin the world
Source: BMI, Frost & Sullivan, World Bank
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Where we see opportunities
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Tele-health/ Tele-medicineHospital management &patient administrationsystemsElectronic health record
Research excellence inmedical products,technologies,
Robust regulatoryregime
Sophisticateddomesticpharmaceutical &health care system
Global leader in medicalscience & technologies:breakthroughproducts.
Extensive researchexpertise in developingnew therapeutics fortropical diseases
A global hub for medical research
Underdeveloped healthcare system
PPPprojects
Healthcareinfrastructure
Technology transferprojects
Drugs & vaccines
development /R&D
Emergencyresponse
Diseasesmanagement
Humanresources
Health IT
system
Hospitals &clinic
management
Education& training
NICHE medical &surgical equipment &
devices
General hospitalsupplies, laboratoryequipment
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Vision to turn Vietnam into a pharmaceuticalsproduction 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$241 million in eight projects within the local
drug manufacturing industry
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Pharmaceutical sector – risky but promising
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Top countries for imported
pharmaceuticals in Vietnam - 2012
80% ofpharmaceutical
are imported
Top quality
drugs aremainlyproduced by
foreignplayers Legislation
mandatesusing a localpartner forimporting &
product
registration
Governmentfocuses on
the productionof generic
pharmaceuticals
Highly-fragmenteddistribution
Largemarket size Joint
partnershipswill providequicker
market access
Tenderregulationsfavor local
manufacturers
Increasing regulation &compliance level
Low market entry barriers &Self-medicating culture
Universal Health Coveragedrives the needs for productionof generic pharmaceuticals
National drive to producehigh-quality pharmaceuticals
Key drivers and trends
FRANCE1th
2nd INDIA
US$ 235.9 mil
US$ 230.5 mil
3rd SOUTHKOREA
US$ 164.4 mil
4th GERMANY US$ 143.4 mil
5th ITALY US$ 93.9 mil
Increasing use of healthsupplements
Increase in the use of modern,self-medication & traditionalmedicine to self-diagnose
Increasing competitionbetween foreign & domesticcompanies
Increasing local support fordomestic products
Source: BMI, Frost & Sullivan
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Medical technology sector - fragmented
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FragmentedDistribution
Availability ofmany
diversifiedproducts
Multiplestakeholdersfor decision
making
Relationship-driven
business
High focus &resourcesrequired tosell medical
devices
Limitedexclusive
distributors
Small family-run
businesses
Distribution channels
RegionalSegmentation
Regional Provincial
Product/ OperationalSegmentation
DistributorsImporters &Distributors
4th party logisticscompanies
National
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… but poised for growth and change
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ASEAN Economic Community &ASEAN Medical Device Directive
Government vision to become aregional pharmaceutical genericsproduction base by 2020
Increasing investment in hospitalsector from both domestic &international investors
Biotech will assist the developmentof vaccines, higher-qualitypharmaceuticals, gene therapy,and IVF technology
Increasing activities of telemedicinein consultation, surgery, imaging,and cardiology
Increase in in-vitro diagnosticsand imaging equipment
Key drivers and trends
90% ofmedical
devices areimported
Attractivemanufacturingbase
Largelyfocused on
low-endmedicalconsumables
Lowmanufacturing
costsMed Tech is inits early stage
ofmanufacturing
Lowmarketentry
barriers
Growingdemand forhigh quality
healthservices
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Hospital sector
Mr The Dong PhamVice Chairman
Vietnam Private Hospital Association
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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 newhospital set-ups
2011 –2015 eHealth Plan to improve healthIT applications
Aging society with decreasing birth rates
Collaboration between local manufacturers andforeign companies for local generics or low-end medical devices
Collaboration with distributors for joint venturesto move the distributor up the value chain
Expansion or joint ventures in both urban and ruralareas; data warehousing to increase efficiency &data tracking between vendors and hospitals
Systems adoption to link up private andpublic hospital information systems.
Aged care services or IVF specialty clinics orproducts.
Opportunities
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While private hospital sector continues to grow
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Growing sectordue to
overcrowdingissue in public
hospitals
Increasing ITinfrastructuredevelopment
Demand forprivate,
affordablehealthcareservices
Autonomy topurchase
directly fromdistributors asTender is not
required
Governmenttax incentive
for newhealthcare
servicefacilities
Lowoccupancy
rates at somehospitals can
lead toclosure
High demandsfor training in
hospitalmanagement
Collaborationwith public &
privatehospitals forspecialised
services
Opportunitiesfor aged care
services tosupport the
agingpopulation
ForecastedCAGR of
13.4% to 2020
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Via foreign investments & privatisation process
The Decree 93/NQ-CP on “Somemechanisms and policies to develop healthcare” - approved on 15 December 2014,facilitates cooperation between publicand private health care sectors
Public hospital privatisation in Vietnam: 1st
privatisation of public hospital:TheVietnam Central Transportation Hospital,
The cooperation between CityInternational Hospital and Cho RayHospital
Foreign medical suppliers are able toprovide services via
100% foreign-invested hospitals
JV with Vietnamese partners
Business cooperation contracts with
local medical service providers
PPP agreements allow doctors to work inboth public and private healthcare facilities
JV example
Canadian Triple Eye Infrastructure
Corp & Dai An JSC Co.
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PPP & Hospital privatisation Foreign Investment
http://giaothonghospital.vn/gioi-thieu-benh-vien/gioi-thieu-ve-benh-vien-giao-thong-van-tai-trung-uong-18.htmhttp://giaothonghospital.vn/gioi-thieu-benh-vien/gioi-thieu-ve-benh-vien-giao-thong-van-tai-trung-uong-18.htm
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PPP projects in hospital infrastructuredevelopment
Project Location Investmentcapital (US$)
Investmentmodel
ProjectGovernance
1 Obstetrics –paediatrics hospital
Binh Dinh 24 mil PPP Binh DinhDepartment ofPlanning andInvestment
2 Ha Tinh obstetrics –paediatrics hospital
Ha Tinh 17 mil PPP Ha TinhDepartment ofPlanning andInvestment
3 International generalhospital
Gia Lam,Hanoi
200 mil PPP Ha NoiDepartment ofPlanning andInvestment
4 Phu Xuyen GeneralHospital
Phu Xuyen,Hanoi
161 mil PPP Ha NoiDepartment ofPlanning andInvestment
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SAIGON ITO HOSPITAL GROUP
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Demands forhealthcare in
Vietnam are unmet
Long-term potentials inmedical technology
market
• Driven by the national initiative forlocal drugs & medical devicesmanufacturing
• AEC & TPP in place
• Strong foreign investment
Vietnam may become thegeneric drugs manufacturing
hub in the region
• Government focus sector
• Low-cost production & competitiveenvironment
• 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 mainlyimported
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Medical science &
health servicesmission to Vietnam
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Led by Professor IanFrazer
Opportunities to
showcase• Products
• Equipment
• Technology
• Systems
• Services, education andresearch
Obtain market insights,first-hand marketunderstanding
Increase brand awareness
Chances to establishconnections with
• Industry key stakeholders
• Potential customers,distributors and partners
• Key market players
• Education and traininginstitutions Site visits, business
matching activities, networking functions,research workshop
Leverage the Australiangovernment badge
Hanoi & Ho Chi Minh City18th to 22th July 2016
Develop business &collaboration opportunities
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CONTACT AUSTRADE
In Australia: 13 28 [email protected]
In Vietnam: +84 8 3827 0600
[email protected]/Vietnam
www.exportawards.gov.au
www.australiaunlimited.com
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