Growth attracts overseas medical equipment firms
Foreign manufacturers are shifting their focus to Vietnam’s medical equipment market, which promises strong growth and harbours unexploited potential.
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Brandon Moon, general manager of Philosys, told VIR, “We are excited by the prospect of more business opportunities in Vietnam. We are seeking partnerships with reliable distributors who have nationwide sales networks such as pharmaceutical and medical device distribution companies.
The Republic of Korea (RoK)’s medical device maker specialises in making blood glucose monitoring systems for diabetes patients. The firm wants to enter the Vietnamese market after setting up distribution networks in neighbouring countries.
According to Moon, there have been many changes in eating habits and diets over the years. For example, Vietnamese people now eat more fast food. These changes might contribute to some metabolic syndromes such as high blood pressure, high blood glucose, and high cholesterol. Philosys wants to promote blood glucose monitoring products to help Vietnamese people control and prevent diabetes.
Another medical device manufacturer, Neusoft Medical Systems, also has its sights set on Vietnam’s market. The firm focuses on producing equipment such as CT scanners, ultrasound machines, MRI, and X-ray machines. Neusoft has been present in Vietnam for 10 years in partnership with local distributor Gmed Co., Ltd.
“Neusoft has recorded growing sales of its equipment in Vietnam over the past three years. With a growth rate of 30%, the company plans to consolidate its local businesses and upgrade the representative office of its subsidiary in the near future,” a company representative told VIR.
According to Hua Phu Doan, vice president and general secretary of the Ho Chi Minh City Medical Equipment Association, Vietnam is emerging as an attractive destination for foreign pharmaceutical and medical equipment companies.
The country’s medical equipment market grew 18-20% in the 2016-2020 period. In 2017, the country spent more than US$1.1 billion on medical equipment imports, up from the US$950 million spent in 2016.
Doan predicted that the local medical equipment market will grow by over 20% annually in the coming years due to Vietnam’s high economic growth.
