Vietnam Healthcare Market Overview 10 December 2015

Transcription

1 Vietnam Healthcare Market Overview 10 December 2015

2 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 to Vietnam July 2016 Q & A 2

3 Introduction Ms Janelle Casey Senior Trade Commissioner, Austrade Vietnam Mr Dong Pham Vice Chairman, Vietnam Private Hospital Association Ms Minh Cao Business Development Manager, Austrade Vietnam Ms Milena Bliss Senior Trade Adviser International Health, Sydney Australia 3

4 Why Vietnam

5 Vietnam the next growing healthcare market in ASEAN Large population, rapid urbanization & increasing spending power Increasing demands for quality healthcare Strong economic growth Increasing healthcare expenditure Next growing medical devices/ pharmaceuticals manufacturing industry Global shift in ASEAN markets 5

6 The shift in ASIAN market: impacts from AEC 6

7 AEC impacts to healthcare industry Removed or lowered tariff / tax rates Harmonised requirements for inter-asean licensing & permits for practice Opportunities in Vietnam Import of services for physicians Manufacturing base for medical devices Next in production of and R&D pharmaceutical and medical devices Easier medical business expansion & transfer of capital Free flow of skilled labor Free Flow of Capital Free flow of Goods AEC OBJECTIVES Free Flow of Investment Free Flow of Services Expansion & exporting of services such as medical & technical expertise Expansion of pharmaceutical & medical device manufacturers & distributors Source: BMI, Frost & Sullivan 7

8 TPP Outcomes for Australia in the health sector Elimination of duties Greater access & operating conditions Improve competition level of Australian pharmaceutical & medical devices manufacturers Ability to participate in tenders for government procurement contracts USA MEXICO PERU CHILE VIETNAM SINGAPORE CANADA MALAYSIA BRUNEI JAPAN AUSTRALIA TPP Parties For further information, visit 8

9 VIETNAM HEALTHCARE MARKET

10 Vietnam the next healthcare market in ASEAN Large & fast growing Population 90% Medical devices are imported Year 2015 Year 2020e URBAN RATE 33.6% 36.9% 32.3% 19.5% Consumables Diagnostic Imaging Dental products 29.3% 22.3% 91million 4th largest in ASEAN 14 th largest in the world Growing at 1.05% 97million Year % 4.9% 5.2% 24.9% Orthopedics & prosthetics Patient aids Others 12.0% Year 2020e 5.9% 5.0% 25.4% Total healthcare spending 5.8% GDP highest in ASEAN US$13 billion Year 2015 Growing at 13.4% US$24 billion Year 2020e Year 2014 Hospitals 1,090 Public 1, Private Year 2020e Hospital beds per 10,000 habitants Year Doctors per 10,000 habitants Source: BMI, Frost & Sullivan, World Bank Pharmaceuticals market value US$3.8 billion Year 2014 Growing at 14.1% US$7.3 billion Year 2019e 10

11 Where we see opportunities Hospitals & clinic management PPP projects NICHE medical & surgical equipment & devices General hospital supplies, laboratory equipment Healthcare infrastructure Technology transfer projects Research excellence in medical products, technologies, Extensive research expertise in developing new therapeutics for tropical diseases Health IT system Drugs & vaccines development / R&D A global hub for medical research Underdeveloped healthcare system Emergency response Human resources Education & training Diseases management Global leader in medical science & technologies: breakthrough products. Tele-health/ Telemedicine Hospital management & patient administration systems Electronic health record Sophisticated domestic pharmaceutical & health care system Robust regulatory regime 11

12 Vision to turn Vietnam into a pharmaceuticals production 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 12

13 Pharmaceutical sector risky but promising Top countries for imported pharmaceuticals in Vietnam th 2nd 3rd 4th Increasing regulation & compliance level FRANCE Key drivers and trends Low market entry barriers & Self-medicating culture Universal Health Coverage drives the needs for production of generic pharmaceuticals National drive to produce high-quality pharmaceuticals US$ mil INDIA US$ mil SOUTH KOREA US$ mil GERMANY US$ mil 5th ITALY US$ 93.9 mil Increasing use of health supplements Increase in the use of modern, self-medication & traditional medicine to self-diagnose Increasing competition between foreign & domestic companies Increasing local support for domestic products Highlyfragmented distribution Tender regulations favor local manufacturers Large market size Top quality drugs are mainly produced by foreign players 80% of pharmaceutical are imported Joint partnerships will provide quicker market access Source: BMI, Frost & Sullivan Legislation mandates using a local partner for importing & product registration Government focuses on the production of generic pharmaceutic als 13

14 Medical technology sector - fragmented Availability of many diversified products Small familyrun businesses Multiple stakeholders for decision making Regional Distribution channels National Provincial Fragmented Distribution Regional Segmentation Product/ Operational Segmentation Limited exclusive distributors Relationshipdriven business Distributors Importers & Distributors 4 th party logistics companies High focus & resources required to sell medical devices 14

15 but poised for growth and change Key drivers and trends ASEAN Economic Community & ASEAN Medical Device Directive Government vision to become a regional pharmaceutical generics production base by 2020 Increasing investment in hospital sector from both domestic & international investors Biotech will assist the development of vaccines, higher-quality pharmaceuticals, gene therapy, and IVF technology Low market entry barriers Growing demand for high quality health services Attractive manufacturing base 90% of medical devices are imported Largely focused on low-end medical consumables Increasing activities of telemedicine in consultation, surgery, imaging, and cardiology Increase in in-vitro diagnostics and imaging equipment Med Tech is in its early stage of manufacturing Low manufacturing costs 15

16 Hospital sector Mr The Dong Pham Vice Chairman Vietnam Private Hospital Association

17 Developing public hospital sector is a priority Market drivers Healthcare expenditure is ~ 6% of GDP, highest in ASEAN region Opportunities Collaboration between local manufacturers and foreign companies for local generics or lowend medical devices Financial resources from WHO to develop healthcare infrastructure Collaboration with distributors for joint ventures to move the distributor up the value chain Government reducing barriers to new hospital set-ups Expansion or joint ventures in both urban and rural areas; data warehousing to increase efficiency & data tracking between vendors and hospitals ehealth Plan to improve health IT applications Systems adoption to link up private and public hospital information systems. Aging society with decreasing birth rates Aged care services or IVF specialty clinics or products. 17

18 While private hospital sector continues to grow Forecasted CAGR of 13.4% to 2020 Collaboration with public & private hospitals for specialised services High demands for training in hospital management Opportunities for aged care services to support the aging population Increasing IT infrastructure development Growing sector due to overcrowding issue in public hospitals Low occupancy rates at some hospitals can lead to closure Demand for private, affordable healthcare services Government tax incentive for new healthcare service facilities Autonomy to purchase directly from distributors as Tender is not required 18

19 Via foreign investments & privatisation process PPP & Hospital privatisation The Decree 93/NQ-CP on Some mechanisms and policies to develop health care - approved on 15 December 2014, facilitates cooperation between public and private health care sectors Public hospital privatisation in Vietnam: 1 st privatisation of public hospital:the Vietnam Central Transportation Hospital, The cooperation between City International Hospital and Cho Ray Hospital Foreign medical suppliers are able to provide services via 100% foreign-invested hospitals JV with Vietnamese partners Business cooperation contracts with local medical service providers PPP agreements allow doctors to work in both public and private healthcare facilities JV example Foreign Investment Canadian Triple Eye Infrastructure Corp & Dai An JSC Co. 19

20 PPP projects in hospital infrastructure development Project Location Investment capital (US$) 1 Obstetrics paediatrics hospital 2 Ha Tinh obstetrics paediatrics hospital 3 International general hospital 4 Phu Xuyen General Hospital Investment model Project Governance Binh Dinh 24 mil PPP Binh Dinh Department of Planning and Investment Ha Tinh 17 mil PPP Ha Tinh Department of Planning and Investment Gia Lam, Hanoi Phu Xuyen, Hanoi 200 mil PPP Ha Noi Department of Planning and Investment 161 mil PPP Ha Noi Department of Planning and Investment 20

21 SAIGON ITO HOSPITAL GROUP 21

22 Vietnam a market full of potentials Demands for healthcare in Vietnam are unmet Hospitals overcrowding Under-served rural population Poor adoption of technology High-quality drugs are mainly imported Long-term potentials in medical technology market Driven by the national initiative for local drugs & medical devices manufacturing AEC & TPP in place Strong foreign investment Vietnam may become the generic drugs manufacturing hub in the region Government focus sector Low-cost production & competitive environment Lower business boundaries due to AEC & TPP 22

23 Medical science & health services mission to Vietnam Hanoi & Ho Chi Minh City 18 th to 22 th July 2016 Led by Professor Ian Frazer Opportunities to showcase Products Equipment Technology Systems Services, education and research Chances to establish connections with Industry key stakeholders Potential customers, distributors and partners Key market players Education and training institutions Develop business & collaboration opportunities Obtain market insights, first-hand market understanding Increase brand awareness Leverage the Australian government badge Site visits, business matching activities, net working functions, research workshop 23

24 CONTACT AUSTRADE In Australia: In Vietnam: vietnam@austrade.gov.au Disclaimer: Austrade does not endorse or guarantee the performance or suitability of any information introduced in this presentation or accept liability for the accuracy or usefulness of information contained here within. Please use your commercial discretion to assess the suitability of any business introduction or goods and services offered when assessing your business needs. Austrade does not accept liability for loss associated with the use of any information and any reliance is entirely at the user s discretion. This presentation is copyright and cannot be reproduced without the prior permission of the Australian Trade Commission.