Navigating Vietnam's Growing Medical Devices Market

An increase in the aging population, a shortage of medical devices, and government support in the form of tax incentives and industry prioritization, further amplify business opportunities in the sector.

The Vietnamese medical device market is expected to experience a growth rate of 6.4% from 2023 to 2028, positioning it as one of the strongest performers in the Asia-Pacific region. DKSH Vietnam’s Kim Phuong Nguyen, Senior General Manager, Sales and Marketing, Healthcare Alliance, shared her insights with medical device companies who are planning to enter and looking for sustainable grow in this exciting market.

Common Assumptions About Entering the Vietnamese Market

• One-size-fits-all approach: Often, businesses erroneously believe that a uniform strategy can be universally applied across diverse markets, disregarding the variances in local cultures, preferences, and economic contexts
• Copy-pasting strategies: Replicating previously successful strategy without considering the unique dynamics of new markets can impede innovation and hinder sustainable growth
• Quick returns on investment: The pursuit of immediate returns frequently leads to adopting of short-term, aggressive tactics that compromise long-term sustainability
• Overreliance on Digital Solutions: While digitalization is integral, it's essential to recognize that personal relationships and physical interactions retain significant value in many markets alongside online presence

Considerations for Market Entry

Leaders should first acknowledge that establishing a foothold may require several years. To develop a strategic, comprehensive plan for successful market penetration, it is important to acquire deep insights into the market, including local practices, laws, and regulations. The Vietnamese government is putting tremendous effort into transforming the current healthcare law and regulations. This requires business leaders to stay ahead of the changes to ensure the relevancy and compliance of the business strategy.

Another key essential for medical device companies to set a footprint in the market is to establish a strong customer base and cultivate robust relationships and partnerships via regular and intensive training. These trainings are essential for effectively executing selling, marketing, and promotion services, as well as technical services and clinical application services in the later phases.

Additionally, business leaders also need to consider wise and long-term investments for dedicated business operation support, including consignment inventory management (CIM), urgent delivery, regulatory affairs, and compliance management, which are also crucial for achieving business objectives.

An alternative to consider is seeking assistance from a trusted partner specializing in market expansion services. This partner should have extensive industry knowledge, deep local insights, and a robust network of local partners and customers in both the OTC and hospital channels. This collaboration will expedite market penetration efforts while ensuring sustainable growth.

Successes with DKSH

Japanese chemical and specialty materials company Tosoh Corporation collaborated with DKSH Vietnam to devise marketing strategies for promoting hemoglobin A1c (HbA1c) tests for diabetes treatment, achieving sales targets in the first year. DKSH's Healthcare team in Vietnam was honored with the Tosoh Asia Resilience Award for their outstanding performance.

Alcon, a global leader in eye care with patients in more than 140 markets worldwide, forged a partnership with DKSH and Mat Saigon Hospital Group, the largest private eye hospital chain in Vietnam. Watch the video here to know more about this partnership