Overview
Vietnam’s continued economic development, growth of the middle class, and increasing demand for high-quality healthcare services are crucial drivers for the nation’s healthcare system. To upgrade and expand their facilities, improve operational efficiency, and provide better services, Vietnam is investing in equipping facilities with advanced medical devices. According to BMI, Vietnam’s healthcare expenditure surpassed $22 billion in 2024, representing 4.7% of Vietnam’s GDP.
Together with the birth rate decline, Vietnam’s aging population is resulting in higher demand for healthcare services and products. According to the WHO, non-communicable diseases (NCDs) are an increased mortality and morbidity burden that accounts for approximately 80% of total deaths in Vietnam.
In recent years, Vietnam’s private hospital sector has demonstrated steady growth, with 384 facilities currently making up 24% of the total hospitals, though they account for only 5.8% of the nation’s bed capacity. These hospitals primarily focus on specialties like ophthalmology, dentistry, dermatology, cardiology, and oncology, typically with fewer than 50 beds, while general hospitals with over 100 beds remain scarce. This falls short of the targets set in the 2021-2030 Healthcare Network Master Plan, prompting significant efforts by the Ministry of Health and presenting significant opportunities for the U.S. healthcare industry.
Public and private hospitals in Vietnam are upgrading their facilities and opening new departments for specialty treatment, providing opportunities for U.S. suppliers.
Public hospitals dominate the healthcare system and account for 76% of the total number of hospitals in Vietnam. However, the Vietnamese healthcare sector is currently facing several challenges:
1. Most hospitals are outdated and face chronic overcrowding. Hospitals in Hanoi and Ho Chi Minh City receive up to 60% of the country’s patients and operate beyond intended capacity.
2. Much of the existing medical equipment in public hospitals in Vietnam is obsolete and needs replacement. Many hospitals lack sufficient equipment for surgery and intensive care units.
3. Vietnamese public hospitals rely largely on a state budget to upgrade their facilities, equipment, and services. The total budget for the health sector has increased, but it is still too low to meet demand.
4. A shortage of qualified medical staff is common in many hospitals. Doctors and nurses work under stressful conditions, and wages are relatively low.
As high-quality healthcare service is not yet widely available in Vietnam, the Ministry of Health estimates that nearly 40,000 Vietnamese consumers spend approximately $2 billion to travel abroad for medical services every year.
Medical Equipment
Heightened demand for higher healthcare quality has fostered investment in medical devices. According to BMI Research, the Vietnam medical device market was valued at $1.9 billion in 2024 and is forecasted to grow at a compound annual growth rate (CAGR) of 8.2% in the period of 2024–2029 to reach $2.8 billion by 2029.
Around 90% of medical equipment in Vietnam is imported. The most commonly imported and used medical equipment includes consumables, diagnostic imaging, dental products, orthopedics, prosthetics, and patient aids. China, the United States, Japan, Singapore, South Korea, and the EU are the major suppliers in the market. A recent BMI report shows that in 2023, exports from China, the United States, Japan, Singapore, and Germany accounted for 59% of Vietnam’s medical equipment imports.
The Ministry of Health of Vietnam (MOH) is responsible for state management of medical devices, implementation of legislative documents, national technical regulations, strategies, policies, and plans on medical devices, conducting inspections, settling complaints/denunciations, and taking action against violations related to medical devices.
Within the Ministry of Health (MOH), the Infrastructure and Medical Device Administration (IMDA) is a specialized department that advises and assists the Minister of Health in state management and organizes law enforcement on the construction of medical works and medical equipment. The Administration oversees issuing detailed regulations on standards, import licenses, registration numbers for medical devices (Class C and D), Certificates of Free Sales, and medical device price declarations. The Provincial Departments of Health are responsible for the notification of Class A and B medical devices.
In January 2025, Vietnam issued Decree 04/2025/ND-CP (Decree 04), amending and supplementing Decree No. 98/2021/ND-CP, as amended by Decree No. 07/2023/ND-CP, on the management of medical equipment. Decree 04 allows all existing medical equipment import licenses to be automatically extended to June 30, 2025, and regulates outstanding dossier submissions for import licenses to be reviewed and approved under the legal framework of this new decree. The Government of Vietnam has begun drafting a legislative replacement for this series of decrees that is anticipated to be available for review by the National Assembly in 2028.
Pharmaceuticals
According to BMI, the Vietnam pharmaceutical market was valued at approximately $6.4 billion in 2024 and is forecasted to reach $9.4 billion by 2029 and achieve a compound annual growth rate (CAGR) of 7% in the period of the next 10 years. Vietnam imports approximately 60% of pharmaceutical end-products and 90% of the active pharmaceutical ingredients used in drug production.
Patients continue facing challenges over medical access and increasing out-of-pocket healthcare costs. The large regional variations with regard to the number of healthcare facilities, doctors, and beds between the rural and urban regions of the markets further complicate challenges in Vietnam’s healthcare system.
Due to the shift of demographics, disease profile, growing healthcare infrastructure, and the development of pharmaceutical products and medicinal drugs, the prescription drug market is expected to grow faster than over the counter (OTC) medicine sales. Prescription drug sales were estimated to reach $4.9 billion in 2024 and forecasted to grow steadily to hit $7.3 billion by 2029 with a 7.4% CAGR in the next 10 years. Meanwhile, OTC drug sales in 2024 reached $1.5 billion and are expected to rise to $2.1 billion by 2029, representing a 10-year CAGR of 5.8%.
Vietnam will likely see growth in the generic drug market surpass that of the patented drugs sector over the medium term, accounting for 59% in 2024 and 62% in 2029 of total pharmaceutical sales, thanks to increased domestic production, strategic partnerships with global drugmakers, and increasing demand for affordable healthcare. According to the Pharmaceutical Research and Manufacturers of America, during the 2012 to 2021 period, approximately 460 new medicines were introduced globally, only 40 of which were available in Vietnam.
On November 21, 2024, the National Assembly of Vietnam approved Pharmaceutical Law No. 44/2024/QH15 (Pharma Law), amending and supplementing several articles of the Pharmaceutical Law No. 105/2016/QH13. The revised Pharma Law combines key improvements for U.S. exporters, such as the introduction of regulatory reliance, aiming to shorten the timeline for the registration of new drugs, vaccines, and biologics medicines that are approved by stringent regulatory authorities and remove repetition of local batch release testing; a recognition mechanism simplifying the marketing authorization renewal procedure; and removal of the requirement for drug information approval, authenticity, and legality of documents provided to authorities.
The revised Pharma Law went into effect on January 1, 2025, for clauses related to marketing authorization renewal and price declaration, with the additional clauses having gone into effect on July 1, 2025.
Opportunities
There are four main classes of medical device purchasers. The largest are government-funded hospitals, which account for 86% of the market. Foreign-owned hospitals and clinics are also large purchasers. However, these facilities often purchase supplies from their sponsoring country. Local private hospitals will show the strongest growth, while research and educational institutions will also account for some of the demand. Several medical education and research institutions are open to experimenting with new systems and innovative methods. These end-users present an excellent strategic opportunity to develop partnerships, given their desire to explore new technologies.
Large amounts of public funds have been allocated to upgrading hospitals in the provinces. Major national-scale hospital upgrades and construction projects have been approved by the central government. Vietnam also receives a large amount of international aid in the form of loans and donated medical equipment. There are several small projects underway in Vietnam, including those funded by the World Bank and the European Union.
Resources
Medical Devices:
- Decree 07/2023/ND-CP amends Decree 98/2021/ND-CP dated November 08, 2021, prescribing medical device management.
- Decree 98/2021/ND-CP on management of medical devices
- Circular 14/2023/TT-BYT on procedures for determination of budget limits for procurement of goods and services for medical equipment at public health facilities
Pharmaceuticals:
- Law No. 105/2016/QH13: Law on Pharmacy
- Decree 54/2017/ND-CP: Guidelines for Implementation of the Law on Pharmacy
- Decree 155/2018/ND-CP: Amendments to Some Articles Related to Business Conditions Under State Management of the Ministry of Health
- Cir 08/2022/TT-BYT: Regulating the Registration of Drugs, Drug Ingredients
Other:
For more information about the Vietnamese healthcare industry, please contact:
- Ms. Nhung Nguyen, Commercial Specialist
The U.S. Commercial Service, U.S. Embassy in Hanoi
Email: nhung.nguyen@trade.gov
- Mr. Thao Nguyen, Commercial Specialist
The U.S. Commercial Service, U.S. Consulate General in HCMC
Email: thao.nguyen@trade.gov