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Digital Health in Vietnam Market Intelligence Report Department for International Trade report prepared by KPMG and Oxford University Clinical Research Unit — December, 2020
Table of Contents
04 06 18 22 32 36
Foreword Overview of Digital health Key areas in Digital health Market access
Vietnam’s economy ecosystem digital health regulation strategies for
UK companies
Macroeconomic Overview of digital health Health information Decision 4888/QD-BYT -
indicators market in Vietnam technology National agenda for
e-health adoption
Vietnam’s healthcare Local digital health Telehealth / Telemedicine
sector overview ecosystems Cyber Security Law
Consumer health and Regulation
Telecom Infrastructure: electronics
Connectivity Big Data / AI-based
AI and Big Data in medical devices
digital health
Potential hurdles
Opportunities for for UK companies:
UK companies legal perspectives on
procurement process
Foreword
W elcome to the Digital health in Vietnam – Market intelligence report!
In an age of growing challenges from non-communicable diseases, and emerging threats from infectious diseases
O ver the past two decades, Vietnam has achieved laudable improvements in key quality of life metrics such
as life expectancy, infant mortality, and access to affordable medicines. This success is the result of the
government’s concerted effort to modernise the health system and expand access to affordable care. At the time
such as COVID-19, digital health has the potential to offer new solutions and alleviate pressure on overstretched of writing, Vietnam has extended Universal Health Coverage (UHC) to 90% of the population, and targets to reach
health systems. Digital health technology can empower patients to actively participate in their care, improve clinical 95% by 2025. This coverage ratio leads its regional peer markets. The country nevertheless still has a relatively
high out-of-pocket expense ratio while spending the highest amount of GDP on healthcare. It is therefore likely
outcomes and enhance operational efficiency.
that if Vietnam hopes to continue to expand access to quality care and maintain sustainable health financing, the
Innovation and technology have touched many aspects of life in Vietnam and healthcare is no exception. In a health system will need to find a way to provide more services, while expending fewer resources per patient.
concerted effort to embrace Industry 4.0, the Vietnamese government has committed to a national agenda that Digital health is one answer to achieving scale of access while improving clinical outcomes and maintaining costs.
seeks to harness the potential of digital solutions across the health system. This has set a solid foundation for digital To do this, the government needs to expand market access and encourage international business and clinical
transformation in Vietnam. partnerships.
Vietnam and the UK share many of the same aspirations. We seek to utilise digital innovation to expand equitable
UK companies have many of the missing digital pieces Vietnam needs to accelerate progress towards its
access to quality care, in line with United Nations Sustainable Development Goal 3, on good health and wellbeing. At
healthcare development goals. At the same time, digital health companies that understand Vietnam’s unique
the early stage of digital transformation, Vietnam has plenty of opportunities for innovative solutions from the UK. In population health challenges and can provide collaborative solutions will gain access to one of Asia’s fastest
this comprehensive guide, we provide insight into current market opportunities across health informatics technology, growing healthcare markets. Through this market access, companies can achieve early-entrant advantage and
telemedicine, AI and Big Data. The report also explores the future direction of digital healthcare transformation in meaningfully help Vietnam’s financial and physical burden of disease.
Vietnam and potential challenges facing new entrants to the market.
This document is intended as an introductory guide to Vietnam’s digital health market. Please do not hesitate to
The UK and Vietnam have a rich history of collaboration, and this year we celebrate 10 years of strategic partnership. I reach out to its authors or Department for International Trade as you begin your exploration.
am delighted to support UK organisations interested in entering the Vietnamese market and I wish you every success
in exploring long-term partnerships in Vietnam that will further strengthen our bilateral healthcare ties.
Enjoy the read
For more information on these opportunities and how we can help you do business in Vietnam, please reach out to
our team.
Luke Treloar Guy Thwaites Louise Thwaites
Managing Director – Director Senior Clinical Research Fellow
KPMG Global Strategy Group Oxford University Clinical Oxford University Clinical
Emily Hamblin
National Head – Research Unit Research Unit
Department for International Trade in Vietnam Healthcare and Life Sciences
December, 2020 Vietnam and Cambodia
Contributors
Vo Thi Kim Ngan Du Vu Hoang Tuan Le Hang Nga
Associate Director Manager Assistant
KPMG Global Strategy Group KPMG Global Strategy Group KPMG Global Strategy Group
Vietnam and Cambodia Vietnam and Cambodia Vietnam and Cambodia
4 Market Intelligence Report Market Intelligence Report 5
Overview of
Economic development
Over the last several decades, Implications to digital health
Vietnam has achieved rapid
economic and social development, Indicator Issue Implication
which has driven the demand for Increased An increase in living Some of the most notable
more advanced healthcare services.
Vietnam’s economy
living standards and healthcare examples include consumer
Beginning in 1986, the Doi Moi standard expenditures will likely health electronics (e.g. hi-
reforms initiated a broad-based expand Vietnam’s access tech wearables) and telehealth
economic transformation, which to digital health, which (e.g. remote health diagnostics,
opened a largely closed economy can be provided at a monitoring, intervention, and
to international markets and trade lower incremental cost education). The application
and began a series of ‘pro-business’ than traditional models of telehealth will play an
reforms. As a result of these of care. important role in supporting
policies, Vietnam achieved high the diagnosis and treatment of
economic growth rates that lifted non-communicable diseases
the country to Emerging Market across the population. However,
economic status. This strong this poses a challenge for the
Macroeconomic indicators lower income groups with
economic expansion will likely
continue to benefit the country by less access to technological
Population creating an attractive growth story advances, particularly those in
that will further attract Foreign remote, underdeveloped, or
Direct Investment (FDI) (growing rural areas. To attain universal
Population overview Implications to digital health health coverage for the entire
by 13.5% per annum from 2014
to 2019 in terms of registered population, further government
At the time of writing, Vietnam has Indicator Issue Implication
capital), which in turn will bring support and policy incentives will
a population of 96.5 million, making Golden Among the working-age Vietnam is well positioned to
much needed technology and be required.
it the 15th most populous country population population, nearly half are adopt digital health solutions.
in the world, 8 th in Asia and 3rd in knowledge transfer 3. Vietnam has
structure under 34 years of age, For instance, there will be a
Southeast Asia (behind Indonesia and signed 13 Free Trade Agreements Vietnam’s GDP per capita and real GDP growth from 2017 to 2025f
which is favourable for potentially large addressable
Philippines)1. Despite the addition of (FTAs) further accelerating inbound
the adoption of innovative market for consumer health
around 1 million people per annum, FDI. Most notably of which are
science and technology. electronics in the country.
the rate of Vietnam’s population the ASEAN Free Trade Agreement
Vietnam’s GDP per capita and real GDP growth (2017 to 2025f)
growth has slowed gradually, from Ageing The golden population The application of Big Data (AFTA), the Comprehensive
approximately 2% per annum in the population structure is also and AI can bring geriatric care and Progressive Agreement of 5,000 8.2 9.0
4,303
early 1990s to around 1.1% throughout associated with an ageing solutions. Vietnam can apply Transpacific Partnership (CPTPP), 7.1 3,964 8.0
6.8 7.0 3,656
population. The faster passive sensors and other near- and more recently the EU Vietnam 4,000 7.0
the 2010s. By 2024, the county’s
growth rate of the people patient monitoring technologies FTA (EVFTA). These trade 3,120
population growth rate is expected to 2,828 6.0
3,000 2,567 2,715 6.4 6.4 6.4
slow to 0.8% per annum, reaching a aged 65 years and above to enable remote care solutions agreements are lowering tariffs 2,366 6.0 5.0
total population of 101.1 million2. will create a burden on that link an individuals’ behaviour on many goods including medical 4.0
2,000
healthcare facilities and to treatment. equipment and will help position 3.0
As Vietnam’s birth-rate declines, its demand for care services. At the same time, electronic Vietnam as an attractive investment 3.0 2.0
1,000
average population age will continue This will be particularly health records will pave the and trade destination. At time of 1.0
to rise. Currently, Vietnam is enjoying acute for elderly-care in way for more efficient medical writing, Vietnam is in discussions 0 0.0
a so-called “golden structure” in its the country. information management. with the UK on a possible bilateral 2017 2018 2019 2020e 2021f 2022f 2023f 2024f 2025f
age demographics, with 70% of the Governments and policymakers agreement. Such an agreement
GDP per capita (USD) GDP Growth, % y-o-y
population aged 15 to 64 years. This can utilise relevant population- would extend similar market access
age structure has been a key driver based data to initiate preventative benefits to UK-based organisations.
programs and make decisions GDP Growth & Healthcare expenditure per capita in 2019
in the country’s recent economic
development and will continue to at a health-system level. Growth in FDI is driving GDP per
Health workers will be able capita and the rapid expansion of GDP Healthcare expenditure
push its transition from a largely Country
an urban middle class. This middle Growth (%) per capita (% of GDP)
agrarian economy to one led by to deliver healthcare services
export manufacturing and domestic more effectively, thanks to the class is expected to account for
Vietnam 7.1% 6.0%
consumption. After 2030, Vietnam will availability of historical health up to half of the total population
however begin to age rapidly, with the records and related training by 2035 4 and will, according to the Philippines 6.2% 4.6%
over-65 years of age cohort growing programs. World Bank, drive growth in per
at an anticipated 5.3% per annum. The adoption of remote capita healthcare expenditures. Malaysia 4.7% 4.0%
This could drive the growth of the monitoring and telemedicine This expansion in healthcare
current “retirement age” population of elderly patients will lessen expenditures will be more apparent Indonesia 5.2% 3.7%
distribution 300% by 2050, potentially hospital overcrowding by allowing in higher-end care and in urban
straining health and related resources. doctors to monitor patients from areas, which could expand rural Thailand 4.1% 3.7%
their homes, and thus freeing healthcare access inequalities.
hospital resources such as beds
1. World Population Prospects, the 2019 Revision and saving administrative costs . 3. The Ministry of Planning and Investment
2. Fitch Solutions 4. Fitch Solutions Source: Fitch Solutions
6 Market Intelligence Report Market Intelligence Report 7
Vietnam’s healthcare sector overview
Health status in Vietnam Healthcare structure in Vietnam
The World Health Organization (WHO) recently estimated that non-communicable diseases now account for 77% Healthcare system
of all death and disability in Vietnam. Of these, cardiovascular disease and cancer are the two most common
contributors to premature death and loss in disability-adjusted life years (DALYs), followed by diabetes/chronic kidney ORGANISATIONAL STRUCTURE OF HEALTHCARE
disease as the 3rd most common cause of death and 4th cause of DALYs. Many of these deaths can be prevented HEALTHCARE SYSTEM INSTITUTIONS
with improved diagnosis, monitoring, and tech-enabled early-stage interventions.
Administration Levels Hospitals Health centres Academic institutions
There is increasing recognition of the important interactions between non-communicable diseases co-existing with
infectious diseases, particularly cardiovascular diseases. For example, hepatitis C Virus infection is associated with Ministry of Health (MOH)
an increased risk of cardiovascular disease and represents a global burden of the loss of 1.5 million DALYs. This
tragic burden falls disproportionately on low-income and middle-income countries. Risk of type 2 diabetes mellitus MOH is a government al agency responsible for
TERTIARY
national management and regulation development, Medical and
is increased by almost 70% in Hepatitis-C infected patients. Similarly, in people living with HIV, increased risk of management of national hospitals, research and
Central general and Central
specialty hospitals (Class I preventative health pharmaceutical
cardiovascular disease has been noted. Whilst there is limited data on co-existing cardiovascular and infectious Pasteur institutes, universities and colleges. & II) centres universities and colleges
diseases in Vietnam, the high rates of both means that improving diagnosis and management of these is likely to have
a particularly significant impact in Vietnam. Other ministries Public Private Public Private
NATIONAL
Other ministries including MOD, MOT, MOIT, and
Implications to digital health MARD run healthcare network of hospitals and clinics
Indicator Issue Implication Department of Health
NCD impact on The nature of ill health in Vietnam is Telehealth can promote a healthy lifestyle
Department of Health is an agency under the Provincial general and Provincial
health changing from communicable to non- and encourage preventative measures through Provincial People’s Committee, supporting provincial specialty hospitals (Class I
Provincial secondary
preventative health
communicable diseases. This trend is patient risk-factor monitoring in pre-disease medical schools
healthcare management and preparing decisions, & II) centres
expected to continue, which will create a stages. The utilisation of Big Data and AI in PROVINCIAL directives, plans, etc. across all aspects of the
(63 provinces) healthcare sector on the provincial level.
SECONDARY
Public Private Public Private
greater need for long-term and coordinated digital health allows for real-time, population-
healthcare services that cater to chronic based, forward-looking data that can help avoid
diseases. Digital health is well-positioned to or mitigate non-communicable diseases while District Health Bureau
help address these challenges. enhancing care delivery.
District Health Bureau is an agency under the District District general hospitals District preventative
People’s Committee, supporting districts’ healthcare (Class II, III & IV) health centres
Top causes of death in 2019 & percentage change from 2009 - 2019 management and preparing decisions, directives,
DISTRICT plans, etc. across all aspects of the healthcare sector
% change from 2009-2019 (645 districts) Public Private Public Private
on the district level.
31% 18% 52% 45% 25% 32% 28% 63% 30%
Commune Health Centre
107,659
PRIMARY
Commune health
Commune Health Centre is an agency under the centres
Commune People’s Committee, supporting communes’
86,130 COMMUNE healthcare management (providing primary health care
(11,162 services, most basic care and health education). Public Private
38,005 communes)
26,191 24,002
22,489 19,758
17,118 18,227 Availability of public / Non-availability of public /
13,825 11,387
9,391 11,044 14,367 private sector private sector
2,0452,614 1,2572,054
Lung cancer Tuberculosis LRI* Ischemic heart Stroke COPD Cirrhosis Alzheimer’s Diabetes Source: The Ministry of Health, World Health Organization
disease disease
Source: World Health Organization
8 Market Intelligence Report Market Intelligence Report 9
Hospital capacity
Hospital numbers Healthcare professionals
Vietnam’s public sector has a decentralised hospital system classified into four groups Vietnam ranks on the lower end of countries with regards to trained Healthcare
corresponding to four administrative levels. At the central level, specialised and general Practitioners (HCPs) per capita. This shortage is particularly acute in
hospitals provide secondary and tertiary care, and are active in research, and function as specialised care, such as cancer, palliative care, geriatrics, and mental health.
teaching hospitals. At the provincial or city level, hospitals and medical centres mostly provide The distribution of health workers between urban and remote areas is also a
secondary and tertiary care, combined with outpatient services. Each province is divided challenge, with higher concentrations in urban areas.
into roughly 20 districts. District health centres offer primary and some secondary care
services. Finally, at the communal level, Communal Health Centres (CHCs) offer primary and When compared with regional peer markets, one can see Vietnam’s shortages
preventative health services. Communal healthcare centres are generally the first point of are particularly acute in trained nurses. As of 2018, there are 77,995 physicians
contact for much of the population, especially in rural areas. and 128,386 nurses in the country, which is relatively low compared to the
total population (around 1 physician and 1.3 nurses per 1,000 residents).
The Vietnamese private healthcare sector has started to play an important role as a provider of
care in major cities. The percentage of private hospitals is projected to increase rapidly in the UK 2.12
6.38
coming years as domestic corporations develop hospital groups and clinic chains across the 0.47
Thailand 2.6
country. Some of the examples include Hoan My Medical Corporation, and Vinmec Hospital
Vietnam 0.82
Network of Vingroup. Main drivers behind growth are: 1.34
Philippines 1.25
8.54
01 Many public hospitals lack needed infrastructure investment; Malaysia 1.99
4.31
Indonesia 0.36
Rising personal income allows patients to increase out-of-pocket payments for 1.29
02 Singapore 2.39
private sector and/or premium healthcare services and 5.84
0 2 4 6 8 10
FDI encouragement policies allows foreign investors to build wholly
03
foreign-owned hospitals. Physicians per 1,000 of total population Nurses per 1,000 of total population
Source: Fitch Solutions
Number of hospitals in Vietnam (2013-2018)
1,069 1,063 1,071 1,077 1,085 1,094 Indicator Issue Implication
CAGR ’13-19
Hospital Congested and Digital health can help address capacity
Total hospital numbers 1.3% capacity overcrowded constraints faced by public hospitals By
and hospitals remain a introducing solutions such as telehealth
Public hospitals 1.2%
professional challenging issue and electronic health records, more
165 165 169 171 185 193 staffing in Vietnam. This patients, even in rural settings, can
strains resources gain access to needed healthcare, thus
Private hospitals 1.6% in central and also improving hospital efficiency and
2013 2014 2015 2016 2017 2018 provincial reducing patient crowds. From a health-
hospitals economics viewpoint, telehealth and
Public hospitals Private hospitals
and creates electronic health records can also help
Source: Fitch Solutions, World Health Organization, General Statistics Office of Vietnam inefficiencies at healthcare providers cut cost by reducing
the district and paperwork, improving safety, eliminating
community levels. duplicative tests, and improving health
outcomes. The latter drives economic
benefit by lowering readmittance
Hospital beds through long-term remote monitoring.
AI and wearable tech have the potential
Over the past five years, according to Fitch Solutions and the General Statistics Office of to improve quality of care while reducing
Vietnam, approximately 6,000 hospital beds per annum have been added to the healthcare cost of care in Vietnam. By extending
system, corresponding to a CAGR of 2.5% (from 2013 to 2018). Of these additional hospital beds, patient access to AI-enabled wearable
nearly 16% are at national level, while 43% and 41% are added to provincial and district levels, devices, healthcare professionals
respectively. This demonstrates the effort of the government in alleviating the overloaded capacity can gain a real-time view of patient
of hospitals across Vietnam. conditions and make more accurate and
faster diagnoses. Layering AI and Big
However, the proportion of private hospital beds remains low (5%), mainly due to the marginal Data into the monitoring and diagnosis
volume of private hospitals. Nevertheless, the government has indicated its intent to grow the process will give clinicians the ability
ratio of private hospital beds to 20% of total hospital beds through public and private partnerships. to analyse multiple patient data sets
simultaneously to identify irregularities
In terms of the number of hospital beds per capita, there are large regional variations. More and take early-stage preventative action
specifically, Vietnam’s North Central and Central Highlands have far fewer hospital beds per capita when interventions are more effective
compared to other regions. Recently, the shortage of hospital beds has increased: bed to patient and cheaper.
occupancy rates has reached 120-160% in some public hospitals. This increase is often most
pronounced in central hospitals in major cities.
10 Market Intelligence Report Market Intelligence Report 11
Healthcare insurance system in Vietnam Healthcare quality and access
Vietnam has made great strides in expanding health insurance coverage. After introducing compulsory insurance in
2015, Vietnam now aims to grow the coverage rate of health insurance, setting the goal of reaching 95% in 2025. Patient journey Medical tourism
Nevertheless, out-of-pocket expense ratios in Vietnam are some of the highest in ASEAN, which puts considerable
Inpatient and outpatient care Inbound medical tourism
financial pressure on lower income households.
In Vietnam, outpatient visits outpace inpatient Medical tourism has flourished globally over the past
It should be noted however, Vietnam has made substantial progress in lowering out-of-pocket expense from 61% in
admissions by two orders of magnitude. Overall, both decades and is now valued at over USD53 billion. This
1999 to 45% as of 2019.
inpatient admissions and outpatient visits remained value is expected to grow at 12.9% through 2025 8.
consistent from 2014 to 2019, with 5,600,000 cases Asia Pacific is a top source of, and destination for,
Healthcare expenditure 19.5 CAGR ’14-19 ’19-24 admitted to hospitals and approximately 156,000,000 medical tourism patients. This, however, is still in the
outpatient visits served per year respectively7. early stages in Vietnam. While competitively priced, the
13.8 14.4 Total Overcrowding remains prevalent, given the fact that number of foreign patients in Vietnam is still relatively
13.1 4.3% 6.3%
11.7 11.8 12.2 59.6% expenditure small compared to Singapore, Thailand, and Malaysia.
53.3% 54.4% 55.5% Public hospitals often run inpatient care at over- Most of Vietnam’s inbound medical tourists come from
51.5% 50.2% 51.7% 5.9% 7.8%
expenditure capacity levels, meaning more than one Laos and Cambodia. For now, Vietnam is not considered
40.4% patient is assigned to the same hospital as a top destination for medical treatment due to a lack
48.5% 49.8% 48.3% 46.7% 45.6% 44.5% Private
2.5% 4.3% bed, and of health infrastructure investment and regional brand
expenditure
2014 2015 2016 2017 2018 2019 2024 healthcare facilities will often see between recognition.
5,000-8,500 outpatients visit per day,
Private (USDbn) Public (USDbn) Outbound medical tourism
particularly at central hospitals.
As the local healthcare sector continues to experience
Source: Fitch Solutions, World Health Organization, General Statistics Office of Vietnam
capacity constraints, a significant number of upper-
Vietnam’s efforts to reduce the average inpatient stays middle to high income patients have chosen to receive
have not yet seen success. Average stays remain at or healthcare services abroad from regional countries such
above a week since 2013. While this is comparable to
Public healthcare insurance as Singapore, Thailand, Malaysia, or even further afield
levels seen in the Philippines and Indonesia, Singapore, in the United States. The total amount paid for these
Malaysia and Thailand have managed to shorten this services abroad is estimated to be USD2 billion yearly 9.
Person working in the agriculture, 88% Population indicator to less than 5 days. For patients, a lengthier
forestry, aquaculture and salt
Coverage (2018) stay means higher costs and risk of nosocomial Critical factors for why patients prefer overseas
industry; household members
(“healthcare-acquired”) infections from other patients treatment to local care can include,
Children under age six, near poor individuals, at the hospital. At the same time, for hospitals, higher
and students
length of stay results in lower patient capacities.
Employees in non-state enterprises with more than 1 reputation of foreign facilities,
employee, other organisations, war veterans, and the poor
National Assembly Representative, People’s Council member,
preschool teachers, social welfare groups, dependents of police and qualifications and experience of
armed forces staff foreign doctors,
Civil servants, employees in state enterprises, employee in private enterprises with
more than 10 employees, pensioners, and people on subsistence for the elderly 2% Population
Coverage (1992)
availability of medicines, and
1992 1998 2005 2008 2018
better service and overall quality of care.
Private healthcare insurance
In 2018, 33 million people (35% of total population) However, after the increase in healthcare fees at
were covered by some forms of private health large public hospitals brought about by the so-called As well, inconsistency in diagnosis between local
insurance. This coverage, however, only represents 2% ‘autonomy mechanism’, more people are expected to healthcare facilities can also play a role in the decision
of total health expenditures5. Low coverage rates are join private health insurance policies to gain access to of patients to seek second opinions abroad.
largely due to higher reimbursement rates and more comprehensive
coverage. Furthermore, continued growth in private
strict regulations imposed for non-life insurance
01 sector employment will likely expand employee-benefit
companies operating in the market;
insurance packages as a share of total private insurance.
high insurance premiums compared to public
02 Compared to peer market countries, insurance
options; and
penetration rates (calculated by total premium over total
low brand awareness of private insurance GDP) for Vietnam remains on the low range, accounting
03
packages. for only 2.4% of total GDP in 2018. This indicates
room for further growth6. According to the Insurance 7. Fitch Solutions
5. News articles Association of Vietnam, the insurance penetration rate 8. KPMG Analysis, PR Newswire
6. Fitch Solutions is expected to reach 3-4% in the near term. 9. KPMG Analysis, PR Newswire
12 Market Intelligence Report Market Intelligence Report 13
Implications to digital health Smart phones
Indicator Issue Implication Smart phone sales volume (million) Smart phone sales value (USD billion)
Healthcare access The relatively low ranking of healthcare Increasing demand for ageing infrastructure and
and quality access and quality index reflects some human resource shortages are driving hospital CAGR (14-19) 31.6% CAGR (19-24) 2.4% CAGR (14-19) 15.5% CAGR (19-24) 5.5%
current challenging issues for Vietnam’s executives and government officials to leverage
healthcare system. More specifically, digital to optimise the patient experience and 32.4 4.9
overcrowded hospitals need the most create a health system without walls. 29.6 28.6
27.0 3.8 4.0
infrastructure investment. 3.8
Digital health technology and the medical 21.7 3.4
tourism industry are converging to enhance 2.7
15.1
patient experience and trust in the process. This 1.8
Patient journey Even though Vietnam’s total number of 7.2
effort will shrink the perceived quality of care
hospital beds and ratio of doctors per capita
difference between Vietnam and other markets,
have reached national objective levels,
which will help to stem the USD2bn in outbound 2014 2015 2016 2017 2018 2019 2024 2014 2015 2016 2017 2018 2019 2024
hospital capacity is still overcrowded. This
medical tourism and strengthen Vietnam’s brand
indicates that availability of professionals and
as a medical tourism destination.
facilities still does not meet the country’s
Digital tools are increasing patient engagement Key observations
needs.
through direct patient-provider communication,
Medical tourism Vietnam possesses many of the necessary Overall, the market of smart phones has experienced rapid growth over the past five years (nearly 32% per annum),
instant messaging apps, telemedicine, and
qualities needed to develop inbound medical and is on track to reaching a saturated status in the next five years. While growth is expected to slow down, the
encrypted electronic records. AI-enabled
tourism, such as highly skilled professionals, demand for new products will continue to drive the market.
technologies are just a few examples of digital
yet the industry remains in its early days. integration in the medical tourism supply chain.
Vietnam has rapidly developed its private Telemedicine over online video calls in pre-
hospital networks, some of which achieved treatment diagnosis and assessment and post-
international standards such as Joint treatment can be beneficial in that it lessens Mobile-cellular telephone subscriptions
Commission International (JCI) accreditation. the strain on physical medical infrastructure and
Nevertheless, building trust with patients will empowers patients to have consultations on a Mobile-cellular subscriptions (million) 3G and 4G subscriptions (million)
take more time. schedule and location of their choosing.
The adoption of digital health will help Bringing patient consultations into a digital CAGR (14-19) -1.0% CAGR (19-24) 2.3% CAGR (14-19) 667.0% CAGR (19-24) 11.9%
accelerate the development of patient trust setting can improve clinical outcomes and
by increasing transparency and converging lower costs for Vietnamese patients. Clinicians CAGR (14-19) -9.5% CAGR (19-24) -22.5%
domestic care standards with the best will have access to powerful new tools to
international practices. longitudinally track health outcomes and make
141.5
132.5
130.4
128.8
126.2
79.2
123.9
120.0
more personalised recommendations.
28.7
0.1 4.9
2014 2015 2016 2017 2018 2019 2024 2014 2016 2018 2020 2022 2024
Telecom Infrastructure: Connectivity 3G 4G
Key observations
Telecom infrastructure
Along with the rise of smart phones, the number of mobile-cellular subscriptions is expected to increase steadily in
Mobile development the next five years. This is driven by the surge of 4G since 2016 and 5G (estimated to launch in 2020), both of which
Device and service affordability will replace the older generations 2G and 3G.
72.11
Maximum score: 100 Source: Ministry of Information and Communications, Fitch Solutions
Mobile network infrastructure Consumer readiness index
49.15 74.10
Maximum score: 100 Maximum score: 100
Mobile
connectivity
Mobile connectivity index Content and service availability
63.03 60.11
Maximum score: 100 Maximum score: 100
14 Market Intelligence Report Market Intelligence Report 15
Internet and broadband infrastructure Internet usage trends in Vietnam
Internet development
Overview of internet usage and mobile
Internet penetration
Internet users (% of population) Internet bandwidth (Mbps) rate
CAGR (14-19) 71.2% CAGR (14-19) 41.4% Internet
penetration rate
78% 13,632.8 66%
Daily use of internet
67% 66% (% population)
53% 58% 66%
41% 45%
4,083.6 Daily use of internet
927.7
(% population)
722.2
94% Average time spent
on daily internet use
2014 2015 2016 2017 2018 2019 2024 2014 2015 2016 2017 2018 2019 94%
Domestic International Average time spent
Key observations on daily internet use
6H 42Min
The internet has become an integral part of Vietnamese people’s life, reflected upon its increase in the internet Social media
penetration
penetration rate (66% of the total population as of 2019). Combined with the expansion of internet bandwidth (both 6H 42Min
domestically and internationally), this lays the groundwork for digital development across all sectors in the country’s
socio-economy. Social media
penetration
64%
Average time spent on
Broadband subscriptions daily social media use
64%
Broadband subscriptions (million) Fixed broadband breakdown (%)
Average time spent on
CAGR (14-19) 19.8% CAGR (14-19) 16.1% 7% 2% 1% daily social media use
19% 2H 32Min
61.0 44%
52.8 2H 32Min
44.9 78%
36.2 83% 92% 93% Source: We Are Social, Hoosuite
31.8 71%
29.0
47%
13.0 14.8
9.3 11.3
6.0 7.7 13%
8% 9% 10% 9% 6% 6%
2014 2015 2016 2017 2018 2019
Implications to digital health
2014 2015 2016 2017 2018 2019
Fixed broadband Mobile broadband xDSL FTTx Others Indicator Issue Implication
Internet usage Daily usage of internet in Vietnam has The widespread popularity of internet and
Key observations become increasingly prevalent. On average, social media, combined with the relatively
an individual spends nearly 7 hours on the young population, will foster a rapid adoption
Broadband infrastructure in Vietnam has seen rapid changes since 2014, with a significant increase in both fixed internet every day, nearly half of which are of new communication technologies. In the
and mobile broadband. In terms of fixed broadband, the more modern FTTx has started to take over the traditionally on social media. context of digital health, this will open up more
dominant role of xDSL technology since 2015. This will further enhance the adoption of digitalisation in Vietnam in opportunities for telehealth, consumer health
forthcoming years. electronics, as well as healthcare Big Data and
AI applications in Vietnam.
Source: Ministry of Information and Communications, Fitch Solutions
Implications to digital health
Indicator Issue Implication
Telecom Telecommunication infrastructure has grown The continuous improvement of Vietnam’s
infrastructure significantly over the past five years across telecommunication infrastructure enables the
both internet and mobile sectors. country to become better positioned to adopt
digital health solutions. Telehealth, consumer
health electronics, and electronic health records
will have a solid foundation to continue to grow
in the future.
16 Market Intelligence Report Market Intelligence Report 17
Digital health
ecosystem
Key drivers impacting the digital health market in Vietnam:
Industry
Overview of digital health market in Vietnam • Overloading and
understaffing issues at
existing healthcare public
Vietnam is now laying the foundation for a smart medical records for patients and disease tracking. facilities
healthcare industry that includes disease prevention, Since June 2018, Vietnam has set a clear target
• Pressures from hospital
medical examinations and treatment, and health that, by 2025, 95% of Vietnamese population will
financial autonomy policies
management. Under Decision 4888 issued on have Electronic Medical Records. Meanwhile,
18 October 2019, the MOH set out a roadmap to telemedicine solutions remain under a “pilot • Increasing competition
digitise patient records at hospitals and establish phase”, and the application of AI and Big Data in the Government amongst public and private Patient
smart hospitals. This is the beginning of an ambitious healthcare sector remains limited. medical service providers in
• Government’s initiatives terms of cost and efficiency • Rising demand for affordable
multidisciplinary journey that will benefit from access
to promote national digital both locally and regionally access to healthcare services
to the global industry’s best practices.
transformation program is driven by an ageing,
Vietnam’s digital health market can be divided into • Decision No. 749/QD-TTg: growing population, with rising
four main areas: Health Information Technology, Healthcare is amongst healthcare awareness and
Telemedicine, Consumer Health Electronics, and prioritised sectors for digital greater prevalence of chronic
Healthcare Big Data & AI-based products and transformation. diseases.
services. Currently, these areas are in the early • Government’s master plan for • Increasing demand for premium
stages of development. Specifically, most of the EHRs promotion (Decision No. and high quality healthcare
healthcare facilities in Vietnam still use paper-based 5349/QD-BYT) and digitising services
patients’ records at hospitals • Untapped customer pools in tier
Vietnam’s
and setting up smart hospitals II, and III cities
digital health
(Decision 4888)
market
18 Market Intelligence Report Market Intelligence Report 19Local digital health ecosystems Key players:
POLICY MAKERS Top 5 Central Hospitals:
The Ministry of Health has set out targets to digitise the
Ministry of Health healthcare sector from 2019-2025, including gradually
Hospital name Type of hospital Number of beds
build a smart health-care and prevention system, using
electronic medical records and electronic payments, and
Bach Mai Hospital General 1,900 beds
Electronic Health strengthening the application of information technology in
Administration health management
Cho Ray Hospital General 1,800 beds
K Hospital Oncology 1,800 beds
HEALTHCARE SOLUTION PROVIDERS Huu Nghi Viet Duc Hospital General 1,200 beds
FUNDERS/ SPONSORS
Representative Representative
A PATIENT-CENTRIC,
University Medical Center Ho General 1,000 beds
local companies foreign companies Vietnam Social Bao Viet Bao Minh
INNOVATIVE DIGITAL Security Insurance Insurance Chi Minh City
FPT IBM Doctor
Information Buymed*
Corporation Anyw here*
HEALTHCARE ECOSYSTEM
System
Top 3 conglomerates in Digital Health:
VSS is also planning to replace paper
insurance cards with digital ones to reduce Digital heath conglomerate Digital health services Key partners
Both local and foreign companies have errors in processing information and reduce
responded to rising demand for digital health by time for administrative procedures FPT Health information tech and AI & 200 hospitals including Bach Mai
offering solutions such as teleconsultation Meanwhile, private insurers are partnering with
application, clinical decision-support systems, digital solution providers to encourage Big Data hospital and Cho Ray hospital
online appointment-booking systems etc. adoption of digital health services in Vietnam
VNPT AI & Big Data and Telemedicine 168 hospitals including Bach Mai
Note: *Start-ups hospital and Huu Nghi Viet Duc
HEALTHCARE PROVIDERS
hospital
Bach Mai
Viettel Telemedicine 200 hospitals including K hospital
Hospital
Central-tier hospitals have made great progress in
and Bach Mai hospital
integrating digital solutions into their daily procedures,
Huu Nghi Viet such as giving teleconsultations for satellite hospitals to
Duc Hospital save time and cost, or applied online booking systems to
prevent overcrowding
Top 5 Start-ups:
Gia Dinh
Hospital
Start-up Digital health service Key partners
Doctor Anywhere Telehealth/ telemedicine Saigon Eye Hospital, DoLife
Source: Tradepress, Ministry of Health, Hospital websites Hospital, Thu Cuc Hospital
JioHealth Telehealth/ telemedicine Bao Viet Insurance
Besides the government and associated also partnered with Bao Minh Insurance and Bao Viet
Mydoc Telehealth/ telemedicine Bao Viet Insurance
organisations, private entities in various sectors Insurance respectively to further encourage digital
like telecommunications, IT, and insurance are also adoption in Vietnam. Notable local start-ups include: VieVie Healthcare Telehealth/ telemedicine Medicare, Hoan My Hospital
participating in the digital health space. This creates a VieVie Healthcare, an online platform that enables BuyMed Telehealth/ telemedicine 7,000 pharmacies and clinics
cooperative ecosystem between the government and patients to book appointments and post their concerns
private players that will drive innovation and develop or questions in-app, which will be answered by
the sector. qualified doctors; and BuyMed, which offers a secure
wholesale channel for pharmacies in Vietnam.
Even though digital health remains in its early stages
in Vietnam, it has attracted the participation of both Digital health solutions have also been well-received
local and foreign start-ups, and conglomerates. Notable by hospitals through improved operations management
local conglomerates include FPT, VNPT, and Viettel, and data storage. Healthcare digitalisation continues
which are leading telecommunications firms in the to facilitate the enhancement of operational efficiency
country. These firms offer end-to-end solutions in and medical outcomes in public hospitals. Notably,
Vietnam, aiming to support hospitals in managing more than 92% of public hospitals have outsourced to
daily operations with real-time data, digital signature local IT companies such as FPT, Link Toan Cau, Dang
integration, and digital medical records solutions. Quang and OneNet to develop digital solutions for their
Foreign players are also present in the sector. For facilities.
instance, Microsoft and its cloud services are used
by hospitals and modern pharmacy chains, and IBM’s Compared to public hospitals, private facilities in
Watson is used for Oncology by some domestic Vietnam have relatively more advanced health
institutions. management systems. Large hospital chains such
as Hoan My, and Vinmec Hospital have upgraded
Start-ups in Vietnam are operating at a smaller their digital infrastructure to manage their branches.
scale. Doctor Anywhere, JioHealth, and Mydoc are Furthermore, in order to provide the best services,
international start-ups that offer digital consultations many foreign-invested hospitals are focusing on
and scheduling systems for in-clinic appointments or investing in digital platforms.
at-home visits. Doctor Anywhere and Mydoc have
20 Market Intelligence Report Market Intelligence Report 21Key areas in
digital health Case study analysis
FPT.eHospital. The solution consists of 22 functional modules and
is divided into five main groups:
01 management of medical examination and treatment;
Health information technology
02 administration and office management;
Key development milestones Opportunities 03 laboratory management;
Vietnam’s health information The Vietnamese government has acted swiftly to embrace Industry 04 image transfer, processing, and storage;
system is making initial 4.0, extending this to the digitisation of healthcare. The MOH has
progress: Most medical encouraged hospitals to apply technology to their operation in order 05 and secure data storage.
institutes in Vietnam still use to enhance efficiency. As former Minister of Health Nguyen Thi Kim
The medical management solutions have helped reduce
paper-based medical records Tien states:
information errors, while integrating patient information into a
for patients and diseases. Since
system that is readily accessible to medical professionals. The
June 2018, Vietnam has set
Together with the achievements made over recent years, administrative management solutions in FPT.eHospital have also
the goal to promote Electronic
Vietnam continues the reform of the healthcare system. begun transforming old hospital management systems. As an
Health Records (EHRs). Under
We want to learn from countries in the development of the example, instead of using separate applications, hospitals can
the governmental plan for the
healthcare sector and encourage private investment into now utilise vertical management applications integrated in to
deployment of EHRs (Decision
this path, FPT.eHospital, which manages the administration processes
No. 5349/QD-BYT), at least
from front-office patient care to back-office
80% of people in provinces and
resource management.
central-affiliated cities will have
EHRs in the near-term, reaching Additionally, as Vietnamese hospitals transfer to a more digital
a target of 95% of population system, there is an opportunity for UK digital service providers to help
nationwide by 2025. Currently, manage the complexity of data that this transformation creates.
there are 24 provinces
Challenges
implementing EHRs in
Vietnam, six of which officially Several challenges slow the process of hospitals advancing health
considered the “piloting EHR information technology and digitisation, namely:
provinces”. Emerging EHR
providers like FPT.eHospitals
Financial pressures: Hospital management software
are quickly gaining traction in
and the broader information technology infrastructure is
Vietnam. However, Vietnam
expensive.
data localisation requirements
may create challenges for
providers that operate on a Lack of investment in human resource training: all
global cloud. healthcare professionals will need to be trained in the use
of digital systems. This may be a significant hurdle in rural
or remote regions of the country.
Concerns over data privacy and cyber security laws
to protect patient data.
22 Market Intelligence Report Market Intelligence Report 23Telehealth / Telemedicine
Key development milestones Opportunities Case study analysis
Telemedicine solutions The plan to expand the use of telemedicine is expected to pave the way
Doctor Anywhere (DA)
are under “pilot phase”: for further hospital adoption. The government is encouraging investors
Adoption of telemedicine in to participate in the development of digital health in Vietnam, including Doctor Anywhere is a Singapore-based start-up Currently, BuyMed has an extended network of 700
urban and rural areas is still telehealth. that has operated in Vietnam since the end of verified suppliers, distributors, and manufacturers,
on a small scale. During the 2019. The company serves more than one million serving over 7,000 healthcare providers. Thuocsi.vn
COVID-19 pandemic, Vietnam’s Although the capacity of telehealth service is currently limited to basic
users in Vietnam, Singapore, and Thailand. It offers and BuyMed have both seen significant growth as a
Ministry of Health piloted consultations in Vietnam, it is still expected to improve health conditions
teleconsultation services in internal medicine and result of COVID-19.
telemedicine to encourage in underserved geographical areas. Going forward, opportunities for
paediatrics through a smartphone application. The
social distancing and reduce telemedicine applications in Vietnam exist across numerous areas including Jio Health
patient’s records, prescriptions, and related papers
nosocomial infections. remote patient diagnosis and prescriptions, remote patient monitoring and
will be emailed to the patient after the consultation
Specifically, on 24 April, consultation, and even surgical care and telecardiology. Jio Health is a telemedicine app that enables on-
session. In addition, the prescribed medicine can
the Ministry of Information also be delivered to the patient upon request through demand access to healthcare services such as
and Communications, the “Telemedicine consultation is accompanied by simple medical partnered pharmacies. The company is currently primary care and chronic disease management. By
Ministry of Health, and the devices such as thermometers, blood pressure meters, heart rate delivering 350 tele-consultation sessions per day providing a comprehensive ecosystem through its
Voice of Vietnam signed a meters, diabetes meters, and COVID-19 tests will be developed in Vietnam due to COVID-19, a 600% increase mobile application, customers can talk to doctors
Memorandum of Cooperation soon. With technology advancements, these medical devices comparing to 60 sessions per day before the and nurses 24/7, and schedule appointments with
to provide a free support will become cheaper and will facilitate healthcare development pandemic. With Doctors Anywhere, patients are preferred doctors as well as monitor and download
package for online telemedicine at home,” said the Minister of Information and Communications, able to receive consultations from doctors currently their own medical records such as clinical notes, test
during the COVID-19 pandemic. Nguyen Manh Hung. working in leading hospitals in the country, such as results, and prescriptions. In addition to this, the app
For access, people can Bach Mai Hospital and Cho Ray Hospital. can manage the records of direct family members,
download the VOV Bacsi24 “Vietnam has advantages such as powerful telecoms and IT stored safely in cloud. Users can access their health
app from Google Play or Apple groups, nationwide infrastructure, and resources which can develop Doctor Anywhere has developed partnerships with records electronically at any place and time through
Stores, create an account, infrastructure to speed up digital transformation in important nearly 100 hospitals and clinics, 50 pharmacies, and Jio Health’s mobile application and possibly purchase
and follow instructions. In sectors like education and healthcare,” Hung elaborated. 100 doctors from leading hospitals to meet the rising prescriptions on the application as well. Payment
addition, the government has “The country needs more platforms, and so, we call on the methods are also simplified and safe on JioHealth’s
demand of its users.
implemented a pilot program business community to join the development.” application, ranging from cash to electronic wallets.
with Hanoi Medical University BuyMed
Hospital linking it with several Challenges Since its launch in 2014, an estimated 200,000 people
satellite hospitals, including BuyMed is a medical start-up in Vietnam that seeks to have registered on the application.
Muong Khuong General tackle counterfeit drug issues. The company operates
Lack of clear regulation framework for telemedicine Thuocsi.vn, a pharmaceutical distribution marketplace,
Hospital (Lao Cai province), Ha
Tinh City General Hospital (Ha and aims to simplify pharmaceutical distribution
MOH issued Circular 47 in 2017 regulating telemedicine in Vietnam. system in Vietnam and the rest of Southeast Asia.
Tinh province), commune health
This circular, in effect since February 2018, allows doctors to offer The platform works by verifying suppliers and
stations, and patient homes.
telemedicine services to patients, subject to certain requirements including reducing the risk of medications making entering
This program is expected to
IT infrastructure and licenses. Circular 47 also provides guidelines for a the grey market. Since initial feedback on Thuocsi.
serve as a steppingstone to the
range of telemedicine activities such as telemedicine consultation, tele- vn have been positive, BuyMed plans to add new
wider adoption of telemedicine
radiology consultation, remote consultation, remote surgery consultation, product lines including medical devices, supplements
in Vietnam.
and telemedicine technology transfer training. This is the only regulation and medical services to become ‘one-stop shop for all
governing telemedicine activities so far. In addition, there is also no users’ healthcare needs.
regulation on reimbursement schemes from Vietnam’s Social Security, or
private insurance providers for telemedicine. Telemedicine is a new area, and As there are no major multi-brand distributors in
as such, the regulatory framework is catching up with business needs. Vietnam, most pharmaceutical manufacturers
and brands end up building their own networks,
fragmenting the process of providing prescriptions
Underdeveloped infrastructure, especially in rural areas and pharmaceutical supplies to healthcare providers.
This results in distributors serving over 40,000
The limitation in synchronising digital technology of many hospitals, independent pharmacies and an estimated 5,000
especially tier II and III hospitals is amongst the key challenges for the independent clinics.
implementation of telemedicine in Vietnam. Many older patients and people
living in remote areas have limited access to technology, thus require certain
level of additional infrastructure before they can leverage digital health.
Challenges for changing behaviours of medical professionals
and patients
“It is not the technology but the required changes in habits of people
and medical professionals that will challenge the shift from traditional
consultation and treatment to online services”, said Mr. Nguyen Manh Ho,
CEO of Viettel Solutions.
24 Market Intelligence Report Market Intelligence Report 25Consumer health electronics
Key development milestones Opportunities Case study analysis
As Vietnam develops, people, Wearables have potential to revolutionise how people monitor and
As technology becomes more integrated into daily life, the adoption rate of wearables such as remote
especially the country’s urban maintain their health, and act on personalised health data. Checking
patient monitoring devices and smartwatches with Vietnamese consumers will increase. These tools,
youth, are integrating health one’s vitals on a regular basis for many in Vietnam requires a visit to
among others are now utilised by clinicians as part of standard treatment regimens. This care standard
technology into their lives, a local hospital or clinic, which contributes to crowding and additional
is coming to Vietnam and will help alleviate crowding and resource constraints and improve overall
driving wearable fitness and stress on already strained healthcare practitioners, especially in
treatment quality through more accurate and timely data.
activity tracking technology. remote or rural areas. Remote patient monitoring solutions from
2.3 million people in Vietnam providers such as Phillips Health and Omron HeartGuide are Other markets in Southeast Asia are also quickly adopting wearables and remote patient monitoring
now own some forms of allowing people to communicate with their doctors and track critical technology to improve clinical efficiency, lower costs, and drive better health outcomes. As an example,
wearable tech, including Fitbits, information from the comfort and convenience of their homes. This Singapore’s IoT (Internet of Things) solutions company KaHa recently partnered with medical solutions
Apple Watches, or Samsung will free-up bed space, lower the cost of care, and allow for earlier
provider EasyCare and iDOC Clinic to launch remote patient monitoring for primary care patients. The
Watches. discharge of low-risk patients.
partnership will leverage wearables and near-patient devices to track health statistics such as sleep
quality, blood pressure, heart rate, and activity level, and provide feedback and activity modification
These devices, however,
Challenges suggestions to users through a dashboard. As well, data collected through the devises will be available
have greater potential utility to the patient’s attending physician, which will assist with ongoing monitoring, and help improve the
than just fashion or fitness However, wearable teach in Vietnam is not as common as it is accuracy of future diagnoses.
accessories. According to a in other markets. According to the Rakuten Insight survey, 57%
survey conducted by Rakuten of respondents claimed that their smartphone was sufficient in
Insight, the health monitoring monitoring their health and they did not see a reason to add a paired
is the primary reason why wearable. This may limit the types of data that can gathered and
Vietnamese consumers analysed.
purchase wearable tech. As
such, many corporations It should also be noted that wearables can be expensive, ranging
like Apple & Phillips have from USD $30 to more than $300, while the average monthly salary
announced plans to focusing of a worker in Vietnam is approximately $265. This is particularly
on medical wearable tech that true for rural workers, who generally earn less but have much to gain
focus on heart rate, and sleep from better access to health monitoring.
quality.
26 Market Intelligence Report Market Intelligence Report 27You can also read
