Growth Drivers, Industry Trends, Demand and Future Opportunities till 2031 of the Vietnamese Medical Device Market

The healthcare sector is vital to both national economies and people all across the world. One of the industries with the fastest growth rates is this one. There is a correlation between income levels and healthcare spending across nations because healthcare spending accounts for more than 10% of the GDP of the majority of developed countries.

According to the Centers for Medicare and Medicaid Services, US healthcare spending increased by 4.6% in 2019 to reach US$ 3.8 trillion, or US$ 11,582 per person and represented 17.7% of GDP. Additionally, households paid for 28.4% of all health expenditures, followed by the federal government for 29.0%. 16.1% of all healthcare costs were paid for by state and municipal governments, while 7.5% came from other private sources.

VIETNAM MEDICAL DEVICE MARKET TO BOOST IN COMING YEARS PROJECTED TO REACH WORTH USD 2,862.6 MILLION BY 2028

The growth of the Vietnam medical device market can be attributed to the growth of effective and efficient diagnosis, treatment, and monitoring procedures in the region.

The Vietnam Medical Device Market was worth USD 1,522.1 Million in 2021 and is anticipated to reach USD 2,862.6 Million by 2028 at a CAGR of 7.9%. The market growth is attributed to Vietnams economic development and growing demand for appropriate medical care and equipment. Multiple opportunities are ripe for Vietnams medical device market due to the country’s aging population, scarcity of medical devices, and governmental support in the form of tax incentives and industry prioritization. Moreover, the increasing disposable income, rising population, and rapid urbanization have significantly improved living conditions that have contributed to increasing the demand for healthcare in general and medical devices in particular.

LARGE SCALE INVESTMENTS IN HEALTHCARE SECTOR COUPLED WITH GOVERNMENTS EFFORTS TO DRIVE MARKET GROWTH RATE

The medical device industry in Vietnam has a bright future ahead of it, as the country’s companies are spending heavily on healthcare. The construction of hospitals and health systems has become important as the population has grown. As a fast-growing economy, Vietnam presents a fantastic opportunity for foreign healthcare companies to consolidate and construct a high-quality patient-centric tertiary hospital network, as well as expand healthcare as a lucrative investment sector.

To promote greater foreign investment in the healthcare sector, the government has provided investors with a low corporate income tax rate of 10% for the duration of the project, as well as a tax exemption for 4 years and a lower land lease charge for at least seven years. In order to encourage foreign investment, the government has also decided to set aside land in the districts of My Dinh and Gia Lam for 2 huge healthcare centers. During the projected period, these factors are likely to accelerate the growth rate of the Vietnam medical devices market.

RISING GERIATRIC POPULATION ACT AS A KEY MARKET DRIVER IN VIETNAM MEDICAL DEVICE MARKET

Vietnam is one of Asia’s fastest-aging nations. By 2050, the number of persons aged 60 and more will have increased by nearly a third, from 11.9 million to 29 million, accounting for nearly a third of the entire population. The number of people aged 80 and more will triple, accounting for nearly 6% of the population. Vietnam, according to the World Bank, is one of the region’s most developed economies, having an advanced healthcare sector in recent years. Vietnam is anticipated to maintain its position in the top 20 most stable and sustainable medical device markets globally.

Moreover, most of the enterprises in Vietnam’s medical device industry are trying to reach international standards to produce safer medical devices and generic drugs rather than invest in patent or brand-name drugs, thus making way for the significant growth of the Vietnam medical devices market.

INCREASING PREVALENCE OF NON-COMMUNICABLE LIFESTYLE-ASSOCIATED DISEASES IN THE REGION CONTRIBUTE TO THE VIETNAM MEDICAL DEVICE MARKET GROWTH

The prevalence of non-communicable diseases (NCDs) has increased in Vietnam; it is worth noting that almost a significant number of the population aged 3070 years has diabetes. Economic growth and changes in consumption and living styles coupled with changes in the social environment have influenced disease patterns ranging from communicable diseases (CDs) to non-communicable diseases. Moreover, the main causes of death in the country were cardiovascular disease, coronary heart disease, Alzheimers disease, and lung cancer.

Cardiovascular disease is the most prevalent form of the non-infectious disease, accounting for about 30% of nationwide deaths. Lung cancer is the second-highest non-communicable disease; a big part of the population is affected by lung cancer. Such widespread prevalence of the non-communicable disease has created a heavy demand for an efficient healthcare system in the region, thus indirectly contributing to the growth of the medical devices market in Vietnam.

Source: MarketWatch