The medical devices market in Vietnam, representing a market value of approximately $1.6B USD in 2023, is poised for growth in the years ahead, driven by increasing healthcare demands and reciprocal investments in technological advancements. For international medical device companies, Vietnam is a market that cannot be ignored.

Trends & Insights 

As Vietnam continues to invest in medical infrastructure and advancements in its healthcare systems, foreign companies continue to dominate the supply of medical devices in Vietnam, with over 90% of medical device products being imported from abroad. 

Major suppliers include the United States, Japan, Singapore, Germany, and China, with more than 30% of total imports consisting of high-end diagnostics equipment such as MRI, CT, X-ray, and ultrasound devices from markets like Japan and Germany. Additionally, hand-held devices and a wide array of procedural equipment, ranging from clinical to surgical products, are regularly imported for use in the Vietnam healthcare market. 

According to the US Department of Trade, the medical device market in Vietnam will continue to grow at an average rate of 9% per annum.

Challenges and Opportunities

The Vietnamese healthcare sector, while growing, faces several challenges. For example, public hospitals make up the majority of the system, accounting for 86% of the total number of hospitals in Vietnam. However, many public hospitals and care facilities are under-resourced and suffer from overcrowding, particularly in major cities like Hanoi and Ho Chi Minh City, where facilities regularly operate at over 200% of their intended capacity. 

Additionally, much of the medical equipment used in public hospitals is obsolete or in need of modernization, including in surgical and intensive care units. However, challenges such as complex procurement, licensing and regulatory processes, alongside budget constraints and associated pricing caps, can make it difficult for foreign suppliers to enter the market.

While public hospitals in Vietnam rely on state funding to upgrade their equipment and services, the available budget remains insufficient to meet all rising healthcare demands. 

Despite these challenges, the Vietnamese government has announced and approved numerous upgrading projects for public hospitals, with more expected to come, signaling opportunities for foreign suppliers to support these efforts. For medical equipment device and equipment suppliers , there are significant opportunities to become involved in advancing the public healthcare system.

Private healthcare, operated by both foreign-invested and local ownership groups, is the fastest growing sector in the Vietnamese system. Private healthcare providers, including hospitals, clinics, cosmetics, dental and other sub-sectors, race to compete to meet the demand from patients who seek the most advanced expertise, equipment and technologies available.

Additionally, thousands of Vietnamese patients travel to other destinations, such as Korea, Japan and Thailand, for procedures every month, showcasing demand for the cutting edge. Opportunities exist for leading manufacturers to supply the necessary equipment to the private healthcare system in Vietnam to address this demand.

Vietnam’s Strategic Position in the Medical Devices Industry

Currently, the Vietnamese government actively encourages the import of medical equipment, as domestic production cannot yet meet the growing demand. Imported medical equipment benefits from low import duties and no quota restrictions, further incentivizing foreign companies to consider entering the market.

The Ministry of Health of Vietnam (MOH) is responsible for overseeing the regulation of medical devices, including the implementation of policies, national technical regulations, and inspections. Notably, on March 3, 2023, Vietnam introduced Decree 07/2023/ND-CP (Decree 07), which amended and supplemented Decree No. 98/2021/ND-CP on the management of medical devices. Under Decree 07, all existing import licenses have been automatically extended until December 31, 2024, offering more flexibility for foreign companies looking to export medical devices to Vietnam.

In the future, as capabilities continue to grow, medical device companies may consider leveraging Vietnam’s strategic positioning, increased skilled labor availability, lower cost environment and global market access to develop manufacturing of advanced medical equipment in Vietnam.

Opportunities Summary

For businesses considering Vietnam’s medical device market, understanding the country’s healthcare challenges and opportunities is essential for success, alongside carefully considering and navigating regulatory, licensing and procurement requirements. 

• Supplying Modern Medical Equipment to the Public System: Given the urgent need to invest in equipment capacity in many public healthcare facilities, global medical device companies can consider opportunities to provide high-tech equipment such as MRI machines, CT scanners, X-ray machines, and ultrasound devices.
  
• Supplying Cutting Edge Technology to the Private System: Innovative global medical device companies may seek to develop a market presence in Vietnam to supply cutting edge devices and equipment to fill the demand for high-end care.
• Investing in Private Healthcare Infrastructure: While public hospitals dominate the healthcare system, the private healthcare sector in Vietnam is rapidly expanding. Investing in the development and expansion of private healthcare facilities, which require capital to acquire advanced medical equipment and services, is a potentially lucrative opportunity. This also helps alleviate the burden of overcrowding in public hospitals.
  
• Technology Transfer: Established global manufacturers may consider partnering with existing manufacturers in Vietnam to upgrade capabilities, providing a streamlined pathway into Vietnam’s fledgling medical manufacturing sector.
  
• Public-Private Partnerships (PPP): Public-private partnerships present a viable solution for large international investors seeking to participate in Vietnam’s healthcare market. By collaborating with the government, investors can contribute to upgrading public healthcare infrastructure while benefiting from government incentives in this area.

The Bottom Line

The Vietnamese medical devices and equipment market, while challenging, is poised for substantial growth in the years ahead. This presents a unique opportunity for global companies to expand into Southeast Asia’s dynamic healthcare sector. 

For companies seeking to evaluate feasibility for supplying Vietnam with medical equipment, The Herbers Agency is ready to leverage our team of experts to support you from start to finish – from evaluating market potential, to engaging with distributors, and navigating licensing and regulatory matters – The Herbers Agency is ready to be your trusted partner in Vietnam.

Contact us today to begin your Vietnam journey!

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