# Steady Growth Projected for Vietnam’s Medical Device Market

- Link: https://www.thailand-business-news.com/health/155160-steady-growth-projected-for-vietnams-medical-device-market
- Published: 2024-08-26T11:33:50+07:00
- Author: Bui Dung

**We maintain our forecast for Vietnam’s medical device market and expect a return
to growth in 2024 after an uncharacteristic slowdown in 2023. **After experiencing
a single digit decrease y-o-y from 2022 and 2023, we anticipate double-digit y-o-
y growth in 2024 and for that growth to be sustained in the high single digits in
the medium term.

## Key View

 * We maintain our forecast for Vietnam’s medical device market and expect a return
   to growth in 2024 after an uncharacteristic slowdown in 2023. 
 * A focus on regulation to manage medical device registration backlog and price
   negotiation will ease medical device shortages. 
 * Continued multinational investment in Vietnam’s private healthcare system will
   strengthen the medical device market. 

We project that Vietnam’s medical device market will grow at a 2023-2028 compound
annual growth rate (CAGR) of 10.3% in local currency terms and 9.9% in USD terms
to a value of VND64.1trn (USD2,498.2mn). The medical device industry in Vietnam 
stands to benefit from strong domestic demand and increased healthcare spending,
driven by favourable economic conditions and government initiatives aimed at modernising
healthcare infrastructure.

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While the elderly population in Vietnam is small, the country is rapidly ageing 
which will further strengthen the medical device market. Although the one-party 
system is generally conducive to short-term political stability and policy continuity
there has been increasing political risk in Vietnam following the resignation of
two high profile party members in the first half of 2024. The increased risk will
disrupt policy making and implementation, having an impact on the success of Vietnam’s
long term healthcare strategies. 

Vietnam’s medical device market is poised for steady growth, driven by increasing
international healthcare investments. As the country continues to modernize its 
healthcare infrastructure, foreign capital is flowing into various sectors, including
medical devices. This influx of investment not only enhances the quality and availability
of healthcare products but also fosters technological advancements that are crucial
to meet the rising demands of the population.

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The Vietnamese government recognizes the importance of the healthcare sector and
has implemented policies to attract international players. By establishing favorable
regulatory frameworks and easing restrictions for foreign investments, Vietnam is
becoming an attractive destination for companies looking to expand their footprint
in Southeast Asia. This has led to improved access to innovative medical technologies,
which is essential for addressing the country’s evolving healthcare needs.

Moreover, as Vietnam’s aging population grows, the demand for advanced medical devices
will continue to increase. This trend, coupled with higher disposable incomes and
a rising awareness of healthcare issues, positions Vietnam as a burgeoning market
for medical device manufacturers. With the right investments and partnerships, the
future looks promising for Vietnam’s medical device industry.
[Read More](https://www.fitchsolutions.com/bmi/medical-devices/vietnams-medical-device-market-will-exhibit-steady-growth-driven-international-healthcare-investments-02-08-2024)