Though Vietnam represents a potentially huge medical device market with a population of 80 million, the healthcare industry is still developing and is one of the faster growing markets in the global healthcare industry. The country's government has been keen to put funding into the improvement of the health sector. It has been renovating facilities and equipment throughout the country since the mid-1990s, and has current plans to continue this until 2010. The medical device market has experienced positive changes as a result of economic changes and more open government policies towards private sector participation. Though reforms remain cautious, the more open attitude to the rest of the world has made Vietnam much more accessible to overseas suppliers.

Market
Vietnam’s medical device market, currently worth over $185 million, has also been growing steadily at around 10 percent annually for the past several years. The medical device industry in Vietnam is comprised mostly of foreign imports, with the U.S. holding close to 40 percent of the market; other countries with a large presence in the market include Japan and Germany. U.S. suppliers lead the market various categories including: X-ray and CT scanners, laboratory equipment, OB/GYN, anesthesia equipment and respirator equipment, etc.

Vietnam has some small local manufacturers, primarily engaged in fabricating furniture and simple equipment, such as hospital beds, surgical instruments, and disposable medical supplies. Shimadzu Vietnam (Japan) is probably the only joint venture producing X-ray equipment.

Hanoi and Ho Chi Minh City are two major markets. State owned hospitals, clinics, and health care centers purchase the bulk of medical equipment, representing 80 percent of the market. Foreign owned hospitals, medical universities and research, and private clinics are other buyers of medical equipment. However, foreign-invested private hospitals both newly opened and under development promise to offer the best facilities in Vietnam and therefore, the best opportunities for foreign suppliers.

The total number of hospitals in Vietnam is approximately 837, with about 45,000 beds (for a population of 80 million). Most of these hospitals are publicly owned and in desperate need of modern equipment. There are six foreign-invested hospitals and polyclinics, and ten private hospitals across the country. In addition, there are 19,836 private health care clinics (many run by hospital staff doctors during their off-duty hours), 7,015 traditional medicine centers, 3,432 specialized clinics, and 550 family-planning clinics.

Best Prospects
The best prospects for foreign suppliers include: 1) medical imaging equipment, 2) intensive care and monitoring equipment, 3) operating theater equipment, 4) equipment for treating cardiac and asthmatic conditions, and 5) diagnostic and laboratory equipment.

Market Entry
Foreign companies should carefully (Since, the definition of “pharmaceutical products” is somewhat ambiguous under Vietnamese law. The MOH only states that pharmaceutical products are products intended for human consumption for the purpose of prevention, treatment, relief or diagnosis of diseases, or for the modification of physiological functions. Any pharmaceutical products manufactured, sold or distributed in Vietnam must first be registered with the MOH.) consider their status in the Vietnamese medical market, as only the following types of entities are eligible for product registration in Vietnam:

• Pharmaceutical manufacturers established in Vietnam. This includes foreign-invested companies licensed to manufacture pharmaceuticals in Vietnam
• Domestic entities permitted to trade in pharmaceuticals
• Foreign entities, including manufacturers and distributors, that have been issued with a trading license.

Foreign companies who are not established in Vietnam (as a foreign-invested company in Vietnam under the Law on Foreign Investment in Vietnam), have the option of supplying their products to Vietnam via a local Vietnamese trading company. The local company is responsible for obtaining a License for Foreign Companies to Conduct Operations in Medicines and Raw Medicinal Materials in Vietnam, which is generally referred to as a company license or trading license. Additionally, this local company should be registered to conduct pharmaceutical trading activities in Vietnam.

• Forthcoming Trade Events
  Hanoi MediPharm & BioLab 2006 from May 18-21, 2006 at Hanoi, Vietnam.
• Vietnam MediPharm 2006 from August 24-27, 2006 at HoChiMinh City, Vietnam.
• MediPharm & Healthcare Vietnam 2006 from September 20-23, 2006 at HoChiMinh City, Vietnam.

Key Contact
Ministry of Health of Vietnam, 138A Giang Vo, Ba Dinh, Hanoi, Vietnam. Tel: 844-8464416, Fax: 844-8464051, Email: byt@moh.gov.vn ; Website: http://www.moh.gov.vn