CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnam’s rising healthcare spending is inevitable trend
Nguyen Tung 12:48, 2018/12/08
A report from the World Bank warned that aging will likely hit Vietnam with full force within a very short time span. This transition would come in a mere 15 years and be completed well before the 2040s.
Vietnam’s rising healthcare spending and the replacement of imported drugs with made-in-Vietnam ones in healthcare facilities are a big and inevitable trend, stated Viet Dragon Securities Company (VDSC). 
 
Illustrative photo.
Illustrative photo.
However, poor results of many listed companies in 2018 have proven that the drug replacement will probably take many years, said the securities company in its latest report.

According to UNFPA, although Vietnam is still a young country, the population entered the "aging phase” in 2017. A report from the World Bank warned that aging will likely hit Vietnam with full force within a very short span of time. This transition would come in a mere 15 years and be completed well before the 2040s. An aging population means more spending on pensions and healthcare.

Sales of the Vietnam pharmaceutical market is USD5.3 billion, of which sales to hospitals account for 70%, according to BMI. Moreover, VDSC expected the government would need to increase the spending for healthcare in the next few years. It is what happened in China and is very likely to happen the same in Vietnam, VDSC predicted. This trend should favor manufacturers focusing on the hospital channel.

Experts said as rising spending for healthcare is only a matter of time, the government needs to control costs. This will also help control inflation of healthcare. Therefore, reducing treatment cost and improving efficiency in healthcare facilities are a must. One solution is to encourage domestic drugs usage instead of imported ones. To do so, the government has been working on a series of policies to give preferential status for locally manufactured drugs for hospital purchases.

VDSC listed out potential risks to Vietnam’s pharmaceutical market, including policy risks, as the industry is heavily policy dependent. Moreover, new free trade agreements (FTAs) coming into effect to would lower the imported tax for foreign drugs. 

Additionally, high input price will likely remain due to the environment protection act from China.
Comments
Other news
18:45, 2024/11/28
Vietnam, Hesse (Germany) promote high-tech cooperation
Bilateral trade between Vietnam and Hesse has reached around EUR1 billion (US$1.05 billion) annually, accounting for one-tenth of total trade between Vietnam and Germany.
15:34, 2024/11/27
Big discounts on offer at Hanoi's November Promotion Festival
The event is part of the Hanoi Concentrated Promotion Program 2024, held in May, July, and November, attracting up to 2,000 businesses.
17:23, 2024/11/26
Hanoi unveils 150 most popular Vietnamese products and services for 2024
The "Most Popular Vietnamese Products" voting program is part of the city's broader efforts to encourage the consumption of local goods.
16:50, 2024/11/23
Hanoi hosts the Vietnam Regional Specialties Fair 2024
This year's fair will contribute to the promotion of trade and the expansion of typical regional products, especially agricultural and food products that meet export standards.
14:06, 2024/11/20
Hanoi strengthens export competitiveness and trade protection measures
Hanoi will work with the Ministry of Industry and Trade to ensure that businesses and manufacturers are ready for new challenges.
10:49, 2024/11/16
US reiterates Vietnam is not manipulating currency
The US Treasury Department’s positive evaluation underscores Vietnam’s progress in balancing its economic and monetary policies while fostering strong bilateral relations with the US.