Vietnam’s healthcare industry has been going through a spectacular transition that is advantageous to all stakeholders as a result of the effects of COVID-19. Vietnamese citizens now have more money to spend on healthcare, and hospitals are getting better, which is creating more opportunities for medtech businesses.
Overview of Healthcare in Vietnam
The majority of people in the world have been concerned about healthcare a lot lately. Due to the rapid spread of COVID-19, the overburdened healthcare system and conventional treatments are no longer effective. A trip to a large hospital could unintentionally spread a disease. Vietnamese people are looking for new healthcare methods to protect them and their loved ones.
With a rollout of HealthTech solutions, smartphone-enabled applications, and innovations that have picked up steam in the wake of the COVID-19 epidemic, Vietnam’s medical and healthcare sector has reached a new level. The market has witnessed an increase in the efficiency and convenience of healthcare technologies and services for consumers. While others provide online medication delivery, some facilitate patient-doctor communication.
Vietnam’s Medtech Market
AmCham Vietnam claims that between 2009 and 2025, healthcare spending per person in Vietnam will increase by 9.2 percent annually, reaching $184 in 2021 (18 billion for the entire country) and $262 by 2025 (26 billion for the entire market) (International Trade Administration 2021). In particular, Vietnam’s health spending is projected to reach $15.4 billion in 2020, or 5.7% of the country’s GDP (Nextrans, 2021). Private healthcare spending is anticipated to rise at a CAGR of 7.5%, primarily due to citizens’ rising insurance coverage (International Trade Administration, 2020).
The term MedTech Industry refers to the collection of all tech-enabled services, platforms, and medical devices that make disease prevention, illness diagnosis, and treatment easier. Vietnam’s businesses and government have been actively promoting a smart healthcare sector that entails disease prevention, medical examinations and treatment, and health management.
Health Information Technology, Telemedicine, Consumer Health Electronics, and Healthcare Big Data & AI-based goods and services, which are currently in the early phases of development, are the four main segments of Vietnam’s digital health market (KPMG 2020). In particular, the Government has set a goal for 95% of the Vietnamese people to have electronic health records as of June 2018. While telemedicine solutions are still in the “pilot” stage, there are still few applications for AI and Big Data.
Medtech Applications
Telemedicine
Telemedicine is the first Medtech use worth mentioning here. Tech businesses are creating ways for us to take care of ourselves from home in an effort to combine convenience with health. During the epidemic, telemedicine spread and has persisted; many people still speak to their GPs over the phone. Telemedicine services have been repurposed as a tool for technology to assist communities in surviving the upcoming heatwave in the wake of the pandemic.
Additionally, medtech developers are increasingly utilizing the Internet of Things (IoT), a network of wireless, interconnected, and digital devices. Doctors can, for example, remotely check patient health by connecting medical devices to a server.
AI in medical development
There are several ways AI can be used in healthcare. AI, to name a few, can spot scan irregularities that might otherwise go unnoticed. Clinical trials might be accelerated using AI. Currently, systems that model how a chemical will behave within the body are being developed.
Out of the almost 1,400 hospitals in Vietnam, only a small number of hospitals have begun to use artificial intelligence (AI) and big data. AI and machine learning have proven to be helpful in the long-term effects on both physical and mental health, as well as in the prevention and treatment of COVID 19.
Health information technology
The health information system in Vietnam is progressing: Most hospitals in Vietnam still keep paper medical records for their patients’ conditions. However, beginning June 2018, Vietnam has set the goal of promoting Electronic Health Records (EHRs). Aiming to reach 95% of the population nationwide by 2025, the government’s EHR deployment strategy (Decision №5349/QD-BYT) states that in the next few years, at least 80% of people in provinces and centrally associated cities will have EHRs.
Consumer health electronics
Given the widespread use of wearables and Internet of Things (IoT) technology, the healthcare sector stands to benefit greatly from their potential. In particular, there were 11.3 billion connected IoT devices by the beginning of 2021. By 2026, the market for IoT medical devices is anticipated to have increased from USD 26.5 billion to USD 94.2 billion. This technology is very important since it allows a person to check their own status or to remotely monitor a patient’s condition throughout the day.
Medtech Opportunities
In comparison to public hospitals, private hospitals today have very sophisticated modern health management systems for a variety of reasons, according to a report by YCP Solidiance (2018). Patients with higher incomes are more willing to pay for modern, high-quality medical care.
Private hospitals have increased investment and enhanced their digital infrastructure in order to gain a competitive edge through digitization. These hospitals are furnished with standardized systems and products from top information and technology firms. As a result, private hospitals can incorporate digital tools more easily than public hospitals can. The socioeconomic developments are accompanied by strong future development potential offered by MedTech.
Medtech Challenges
MedTech still presents significant hurdles due to the industry’s traditional operating procedures, complex administrative procedures, and non-centralized data as well as tool usages, despite the abundance of development and growth potential. Notably, there are still concerns about the dependability and capacities of technology, as well as issues with information security and professional ethics, all of which contribute to the resistance to its adoption in the medical industry.
Summary
Vietnam is undergoing a healthcare reform due to numerous circumstances. As a result of these reforms, Vietnam will have more hospitals, which will raise demand for pharmaceuticals and medical equipment. Medtech businesses must keep an eye on these developments and grab these opportunities.
References
International Trade Administration, VIETNAM HEALTHCARE SECTOR (2020, September 29). Retrieved October 27, 2022 from https://www.trade.gov/market-intelligence/vietnam-healthcare-sector
International Trade Administration, Vietnam — Healthcare (2021, September 15). Retrieved October 27, 2022 from https://www.trade.gov/country-commercial-guides/vietnam-healthcare
Nextrans Vietnam, Vietnam Industry Report (2021). Retrieved October 27, 2022
