Key View
- We maintain our forecast for Vietnam’s medical device market and expect a return to growth in 2024 after an uncharacteristic slowdown in 2023.
- A focus on regulation to manage medical device registration backlog and price negotiation will ease medical device shortages.
- Continued multinational investment in Vietnam’s private healthcare system will strengthen the medical device market.
We maintain our forecast for Vietnam’s medical device market and expect a return to growth in 2024 after an uncharacteristic slowdown in 2023. After experiencing a single digit decrease y-o-y from 2022 and 2023, we anticipate double-digit y-o-y growth in 2024 and for that growth to be sustained in the high single digits in the medium term. We project that Vietnam’s medical device market will grow at a 2023-2028 compound annual growth rate (CAGR) of 10.3% in local currency terms and 9.9% in USD terms to a value of VND64.1trn (USD2,498.2mn). The medical device industry in Vietnam stands to benefit from strong domestic demand and increased healthcare spending, driven by favourable economic conditions and government initiatives aimed at modernising healthcare infrastructure. While the elderly population in Vietnam is small, the country is rapidly ageing which will further strengthen the medical device market. Although the one-party system is generally conducive to short-term political stability and policy continuity there has been increasing political risk in Vietnam following the resignation of two high profile party members in the first half of 2024. The increased risk will disrupt policy making and implementation, having an impact on the success of Vietnam’s long term healthcare strategies.
Vietnam’s medical device market is poised for steady growth, fueled by escalating international healthcare investments. Global companies are increasingly seeking opportunities in Vietnam, recognizing its burgeoning healthcare needs and attractive business environment. This influx of capital is not only enhancing medical infrastructure but also facilitating the adoption of advanced healthcare technologies.
The Vietnamese government’s supportive policies and initiatives are instrumental in attracting foreign investment. These measures include regulatory reforms and the implementation of international healthcare standards, ensuring a conducive environment for market expansion. Moreover, the rising prevalence of chronic diseases and an aging population are driving the demand for high-quality medical devices, further bolstering market growth.
International investors bring with them not only capital but also expertise and innovation, crucial for the local industry’s evolution. Collaborations and joint ventures are fostering technology transfer, skills development, and improved healthcare delivery. Consequently, Vietnam is emerging as a pivotal player in the global medical device market, offering substantial growth prospects for investors and elevating the overall standard of healthcare.
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