Aging population, better living standards growth factors for Vietnam healthcare sector: experts

Vietnam’s healthcare industry is poised for significant growth, driven by three main factors – aging population, improved living standards and government’s pro-investment policies, experts said on Thursday.

Organizers of the International Exhibition on Medicine and Pharmacy (Vietnam Medipharm Expo 2024) in Ho Chi Minh City noted that Vietnam’s medical equipment market was valued at $1.67 billion, making it the eighth largest in the Asia-Pacific region.

Explaining the three factors driving market growth, they said data from the General Statistics Office showed that the proportion of people aged 60 and over increased from 11.9% in 2019 to 13.9% in 2023. This demographic requires healthcare services often due to chronic and age-related diseases.

Secondly, improved living standards across both urban and rural areas is prompting people to invest more in health-enhancing products and equipment.

Thirdly, Vietnam’s open policies for attracting foreign investment and encouraging technology transfer are of pivotal importance.

Examples include the National Strategy for the Development of the Vietnamese Pharmaceutical Industry for 2030 with vision until 2045 approved in October 2023, and the Plan for the Development of the Healthcare Network (2021–2030, vision to 2050) approved in February 2024.

The potential was reflected in high level of participation at the ongoing (August 1-3) expo, organizers said.

As many as 450 companies from 22 economies including India, Taiwan, South Korea, Indonesia, Latvia, Sri Lanka, and Turkey are attending the event.

The Ministry of Health has said that the influx of international businesses will not only serve as a crucial trade promotion channel, but also bolster investment in Vietnam’s medical equipment market.