Vietnam’s Healthcare Industry: Overview 2024

Vietnam’s healthcare industry is undergoing significant transformation, fuelled by economic growth, increased investment, and rising demand for quality healthcare services. As the country’s population grows and ages, there is an increasing need for advanced medical infrastructure, specialised care, and expanded healthcare access, particularly in rural areas. Healthcare development is a national priority, with ambitious targets for public health, accessibility, and affordability.

Foreign investment plays a vital role in the industry’s development, with many international companies partnering with Vietnamese healthcare providers to establish advanced facilities and introduce modern medical technology. These partnerships bring much-needed capital and expertise, supporting infrastructure growth and elevating service standards. Additionally, the pharmaceutical sector has seen rapid expansion, with local and foreign firms meeting the rising demand for medicines and medical supplies. Regulatory reforms aim to streamline processes, encouraging greater foreign involvement and fostering a competitive market landscape.

Vietnam’s healthcare system still faces challenges, including limited resources in rural areas and a shortage of qualified medical personnel. The government is tackling these issues through initiatives aimed at expanding medical education, enhancing rural healthcare networks, and leveraging digital health solutions to improve service delivery. As these efforts unfold, Vietnam is positioning itself as a potential regional leader in healthcare, with a focus on creating a robust, inclusive, and sustainable system that meets the diverse needs of its population.

Vietnam’s healthcare industry in numbers

These figures underscore Vietnam’s ongoing efforts to enhance its healthcare system, aiming for greater accessibility, improved quality of care, and better health outcomes.

Vietnam’s dental services market

Vietnam’s dental services market, valued at US$4.21 billion in 2023, is expected to expand significantly, with a projected compound annual growth rate of 4.75 percent through 2029, according to a report from Research and Markets. The research firm found that this growth will be driven by a heightened awareness of oral hygiene among Vietnamese people, along with an increasing demand for dental care beyond basic treatments.

Pharmaceuticals market in Vietnam

In 2024, Vietnam’s pharmaceuticals market is projected to reach revenue of US$2.40 billion. Leading this sector is the oncology drugs market, which is anticipated to account for US$365.5 million worth of the total revenue.

Looking ahead, the market is expected to experience a steady annual growth rate of 4.25 percent from 2024 to 2029, ultimately reaching US$2.96 billion by 2029. This growth underscores the increasing demand for pharmaceutical products and advancements in healthcare within the country, according to data collated by Statista.

See also: Vietnam’s Pharmaceuticals Industry: Overview

Hospitals in Vietnam

Vietnam’s hospital sector is forecasted to reach a revenue of US$9.91 billion by the end of 2024, with an anticipated compound annual growth rate (CAGR) of 7.53 percent over the next five years, driving the market to an estimated volume of US$14.25 billion by 2029. This growth underscores an intensifying demand for healthcare services, fuelled by population growth, urbanisation, and the country’s ageing demographic, according to data collated by Statista.

Revenue, select listed healthcare companies in Vietnam, US$ millions, quarterly

Revenue, select listed healthcare companies in Vietnam, US$ millions, annual

Medical device manufacturing in Vietnam

Vietnam’s medical, dental, orthopaedic, and rehabilitation equipment production has seen strong growth, reflecting both rising healthcare needs and strategic government support for the sector. According to the latest data, the Industrial Production Index (IIP) for this sector rose by 2.8 percent in October 2024 compared to September, marking a 3.0 percent increase from October 2023. The year-to-date performance reveals even more robust growth, with a cumulative 8.2 percent rise from January to October 2024 over the same period last year.

Pharmaceutical manufacturing in Vietnam

Vietnam’s pharmaceutical sector, encompassing drugs, pharmaceutical chemicals, and materials, recorded consistent growth in October 2024. Vietnam’s industrial production index data found a 2.1 percent increase in output from September 2024, reflecting steady monthly progress.

Year-over-year, the sector grew by 5.9 percent compared to October 2023, while the cumulative increase from January to October 2024 was 9.8 percent over the same period last year. These figures highlight the sector’s sustained expansion, which aligns with Vietnam’s focus on enhancing its healthcare infrastructure and localising pharmaceutical production to reduce reliance on imports.

Healthcare price inflation in Vietnam

Vietnam’s consumer price index–CPI–for medicines and medical services in October 2024 recorded significant annual growth, highlighting rising healthcare costs amid increased demand.

Compared to October 2023, the CPI for this sector rose by 8.28 percent, reflecting a notable increase in medical expenses. Since December 2023, prices have risen by 3.02 percent, indicating steady inflation in healthcare services and pharmaceutical products. The month-over-month change from September to October 2024, however, was minimal, with a slight 0.02 percent increase, suggesting stable pricing in the short term.

For the period from January to October 2024, the CPI for medicines and medical services rose by 7.54 percent over the same period in 2023. This sustained year-to-date growth reflects growing demand for healthcare services, potential supply chain challenges, and rising input costs for pharmaceuticals.

Private healthcare providers in Vietnam

The private healthcare sector in Vietnam has grown significantly in recent years, offering a range of services that often cater to the needs of the country’s growing middle class and expatriate population.

Private hospitals, clinics, and specialised centres provide services across various medical specialties. Some private hospitals are modern, well-equipped, and staffed by highly trained medical professionals, while others may have more limited resources and capabilities.

Domestic healthcare providers in Vietnam

Vietnam’s healthcare sector is supported by several key domestic companies that play pivotal roles in pharmaceutical production, hospital management, and healthcare services. Some of these firms are:

Vinmec International Hospital

Funded by Vingroup Corporation, Vinmec operates a network of private hospitals and clinics across Vietnam. Known for its high-quality healthcare services and advanced medical technology, Vinmec has become a leading provider in the private healthcare sector.

Hoan My Medical Corporation

Established in 1997, Hoan My is one of Vietnam’s largest private healthcare groups, operating numerous hospitals and clinics nationwide. The group offers a wide range of medical services and is known for its commitment to quality care.

Tam Tri Medical Group

Tam Tri operates several general hospitals across Vietnam, providing comprehensive healthcare services, including emergency care, surgery, and specialised treatments. The group focuses on delivering quality healthcare with modern facilities and experienced medical staff.

These providers exemplify the dynamic growth and development within Vietnam’s healthcare industry, contributing significantly to improving healthcare access and quality for the population.

Foreign healthcare providers in Vietnam

Vietnam’s healthcare landscape has been significantly enhanced by the presence of foreign-operated medical facilities, which offer international-standard services to both expatriates and local residents. Notable among these are:

Family Medical Practice (FMP)

Established in 1995, Family Medical Practice was the first foreign-owned and operated primary healthcare provider in Vietnam. With clinics in major cities like Hanoi and Ho Chi Minh City, FMP offers a wide range of medical services, including general practice, paediatrics, internal medicine, and emergency care. Their multinational team of physicians ensures comprehensive care across various specialties.

Franco-Vietnamese Hospital (FV Hospital)

Opened in 2003 by a group of French physicians, FV Hospital is a 220-bed facility located in Ho Chi Minh City. It provides a broad spectrum of specialties, including oncology, obstetrics and gynaecology, paediatrics, ophthalmology, gastroenterology, and radiology. In January 2024, Thomson Medical Group completed the acquisition of FV Hospital for $381.4 million, further integrating international expertise into Vietnam’s healthcare system.

Hôpital Français de Hanoï (French Hospital of Hanoi)

Founded in 1997, Hôpital Français de Hanoï is a private hospital offering services such as accident and emergency care, maternity, ENT surgery, orthopaedics, urology, gastroenterology, neurosurgery, ophthalmology, cosmetic and plastic surgery, and dentistry. The hospital employs both French and Vietnamese doctors, providing a blend of international and local medical expertise.

Columbia Asia Hospitals

Columbia Asia operates multiple facilities in Vietnam, including hospitals in Binh Duong and Gia Dinh, as well as a clinic in Saigon. These facilities offer a range of services, including internal medicine, obstetrics and gynaecology, ENT, general surgery, paediatrics, dentistry, ophthalmology, and dermatology. Columbia Asia is dedicated to delivering effective healthcare at excellent value, aiming to be the preferred choice for families and businesses.

These foreign healthcare providers have significantly contributed to elevating the quality of medical services in Vietnam, offering patients access to advanced treatments and international medical expertise.

Health insurance in Vietnam

Vietnam’s healthcare system is a blend of public and private services, with health insurance playing a pivotal role in ensuring access to medical care.

Social Health Insurance (SHI) in Vietnam

Social Health Insurance (SHI) is a government-mandated program managed by the Vietnam Social Security (VSS) system. It aims to provide universal healthcare coverage for all Vietnamese citizens and certain groups of foreign residents, ensuring equitable access to essential health services. SHI is a fundamental part of Vietnam’s social security system, designed to protect individuals against the financial risks of illness, injury, and other health-related issues.

Private Health Insurance in Vietnam

Private health insurance (PHI) in Vietnam offers additional healthcare coverage beyond the basic services provided by Social Health Insurance (SHI). It is designed to meet the needs of individuals seeking higher-quality healthcare services, faster access to treatments, and more extensive benefits. PHI is especially popular among expatriates, high-income individuals, and companies offering comprehensive health benefits to their employees.

See also: Vietnam’s Health Insurance Industry

Key regulations for healthcare providers in Vietnam

Law on Medical Examination and Treatment 2023

 Effective January 1, 2024, this law introduces significant reforms:

Licensing and Competency: Healthcare practitioners must undergo competency assessments before obtaining licences, which are valid for five years. Continuous medical education is required for licence renewal.

Language Proficiency: Foreign practitioners providing long-term care must demonstrate proficiency in Vietnamese, with certain exceptions for specific roles.

Quality Assurance: Healthcare institutions are mandated to conduct annual self-assessments based on standards set by the Ministry of Health.

Law on Health Insurance 

This law outlines the framework for health insurance in Vietnam, detailing the rights and obligations of insured individuals and healthcare providers. Recent discussions have focused on amending the law to expand coverage, streamline patient referrals, and adjust contribution rates to ensure fairness.

Digital Health Regulations

Vietnam is advancing in digital healthcare, with regulations addressing telemedicine and electronic health records:

Telemedicine: Circular No. 49 provides guidelines on telemedicine activities, including licensing requirements and technical standards.

Electronic Health Records (EHR): Decision 5349 approves the deployment of EHRs, aiming to enhance patient care and data management.

What’s next?

The healthcare industry in Vietnam is evolving rapidly, driven by significant investment and regulatory reforms aimed at improving accessibility, quality, and affordability. Vietnam is also pushing forward with digital health initiatives, including telemedicine and electronic health records, to enhance patient care and data management. 

With this in mind, the healthcare market is expanding, attracting foreign investment as it adapts to meet the needs of a growing middle class and an ageing population.

With this in mind, foreign firms looking to track the development of Vietnam’s healthcare industry should make sure to subscribe to the-shiv.