Vietnam Healthcare Market Outlook to 2028

Vietnam Healthcare Market Overview

• The Vietnam healthcare market is valued at USD 600 million, driven by rising healthcare expenditures, increasing demand for quality medical services, and government initiatives aimed at enhancing health infrastructure. This market growth is bolstered by an expanding population, a growing middle class, and advancements in medical technology. Investment in healthcare facilities and services has become essential to meet the rising consumer demand for quality care and to address the challenges posed by chronic diseases and aging populations. Sources such as the World Bank emphasize the critical importance of health sector investments for national development.
• The market sees dominance in cities like Ho Chi Minh City, Hanoi, and Da Nang. Ho Chi Minh City, as the financial hub, experiences high demand for advanced healthcare services, facilitated by substantial investments in private healthcare facilities. Hanoi benefits from government-backed health initiatives, making it a central location for medical advancements and research. Da Nang, with its growing population and tourism sector, has seen increased investment in healthcare services to cater to both residents and visitors, further supporting market growth.
• Vietnam's healthcare policy framework has been strengthened through the implementation of the "Healthcare Law" which was revised in 2022, focusing on improving healthcare access and quality. Key policies support the establishment of private healthcare facilities and aim to enhance the overall quality of health services provided to the population. These regulatory changes facilitate a more conducive environment for healthcare delivery and investment.

Vietnam Healthcare Market Segmentation

• By Service Type: The market is segmented by service type into inpatient services, outpatient services, and emergency services. Among these, inpatient services dominate the market due to the increasing number of hospitals and the rising prevalence of chronic diseases requiring prolonged medical attention. The development of private hospitals and specialized care centers in urban areas has significantly contributed to the growth of this segment. These facilities are increasingly equipped with modern medical technology, improving patient outcomes and attracting more patients who prefer quality inpatient care over public hospitals.
• By Product Type: The market is also segmented by product type into pharmaceuticals, medical devices, and biotechnology products. Pharmaceuticals hold a dominant market share due to the increasing demand for essential medications and the expansion of the pharmaceutical industry. The government's focus on improving healthcare access, along with a rise in lifestyle-related diseases, has propelled the need for a diverse range of pharmaceutical products. Local production combined with strategic partnerships with global firms has also strengthened this segment, making it vital for the overall healthcare landscape.

Vietnam Healthcare Market Competitive Landscape

The Vietnam healthcare market is highly competitive, with several major players focusing on technological advancements and expanding their service offerings. Key companies such as Vinmec Healthcare System, FPT Healthcare, and Hoan My Medical Corporation are prominent in this landscape, leveraging their established presence to enhance market penetration and service diversity.

Vietnam Healthcare Industry Analysis

Growth Drivers

• Population Aging: Vietnam's population is rapidly aging, with projections indicating that by 2025, approximately 15% of the population will be aged 60 and above, which is a significant increase from 12% in 2022. This demographic shift places increased pressure on the healthcare system, necessitating more healthcare services and geriatric care. The rise in the elderly population translates into higher demand for healthcare services, particularly in chronic disease management and long-term care facilities. This change is expected to drive healthcare infrastructure development and service provision significantly in the coming years.
• Rising Income Levels: The average income in Vietnam has seen significant growth, with the Gross National Income (GNI) per capita reaching approximately $4,300 in 2023, up from around $4,000 in 2022. As income levels rise, so does disposable income, enabling individuals to spend more on healthcare services and products. Higher income facilitates better access to healthcare services, allowing families to afford private healthcare options and quality health insurance, contributing to the overall growth of the healthcare sector in Vietnam.
• Increased Healthcare Spending: Healthcare expenditure in Vietnam has been increasing steadily, with total health expenditure reaching approximately 8.3% of GDP in 2023, up from 7.6% in 2022. This rise reflects a national commitment to enhancing healthcare services and improving health outcomes. Increased spending supports the development of health facilities, procurement of medical technology, and the hiring of qualified healthcare personnel, contributing to better healthcare delivery across the country.

Market Challenges

• Infrastructure Limitations: Vietnam faces significant infrastructure challenges in its healthcare sector, with only about 24 hospital beds per 10,000 people as of 2023, compared to the WHO recommendation of 50 beds. This shortage leads to overcrowding in hospitals and limits access to essential healthcare services, particularly in rural areas. The need for enhanced healthcare infrastructure is critical to meet the rising demand and improve overall healthcare delivery.
• Shortage of Healthcare Professionals: Vietnam is facing a critical shortage of healthcare professionals, with a ratio of only 8.1 physicians per 10,000 population as of 2023. This figure is lower than the WHO recommendation of 15 physicians per 10,000 population. The shortage impacts the quality of healthcare services available and limits patient access to qualified healthcare providers. Addressing this gap is essential to improving health outcomes and meeting the increasing demand for healthcare services.

Vietnam Healthcare Future Outlook

Over the next five years, the Vietnam healthcare market is expected to witness substantial growth driven by continuous government investment, advancements in healthcare technology, and an increasing focus on preventive care and wellness. The governments commitment to enhancing healthcare access and quality through various health initiatives will also play a pivotal role in shaping the market landscape.

Future Market Opportunities

• Digital Health Innovations: The adoption of digital health solutions in Vietnam is rapidly expanding, with over 50% of healthcare providers utilizing telehealth services as of 2023. This shift is supported by a growing smartphone penetration rate of approximately 82%, facilitating access to health information and services. Digital health innovations present significant growth opportunities for improving healthcare delivery, patient engagement, and operational efficiency within the healthcare sector.
• Private Sector Investments: Private sector investments in healthcare are on the rise, with an estimated $2.5 billion in private investments in health facilities and services in 2023, up from $2.2 billion in 2022. These investments enhance service availability, improve healthcare quality, and introduce innovative healthcare solutions. The growth of private healthcare facilities presents a valuable opportunity to meet the increasing demand for healthcare services in both urban and rural areas.