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Digital Health in Vietnam 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 elcome to the Digital health in Vietnam – Market intelligence report! ver the past two decades, Vietnam has achieved laudable improvements in key quality of life metrics such W Oas life expectancy, infant mortality, and access to affordable medicines. This success is the result of the In an age of growing challenges from non-communicable diseases, and emerging threats from infectious diseases 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 Economic development Over the last several decades, Implications to digital health Vietnam has achieved rapid Overview of 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. 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 Vietnam’s economy 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, Macroeconomic indicators economic status. This strong this poses a challenge for the economic expansion will likely lower income groups with 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 rural areas. To attain universal Population overview Implications to digital health Direct Investment (FDI) (growing by 13.5% per annum from 2014 health coverage for the entire population, further government At the time of writing, Vietnam has Indicator Issue Implication to 2019 in terms of registered 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 th much needed technology and be required. it the 15 most populous country population population, nearly half are adopt digital health solutions. th rd knowledge transfer3. Vietnam has in the world, 8 in Asia and 3 in structure under 34 years of age, For instance, there will be a signed 13 Free Trade Agreements Southeast Asia (behind Indonesia and which is favourable for potentially large addressable Vietnam’s GDP per capita and real GDP growth from 2017 to 2025f 1 (FTAs) further accelerating inbound Philippines) . Despite the addition of the adoption of innovative market for consumer health FDI. Most notably of which are around 1 million people per annum, science and technology. electronics in the country. the ASEAN Free Trade Agreement the rate of Vietnam’s population 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 9.0 8.2 4,303 early 1990s to around 1.1% throughout associated with an ageing solutions. Vietnam can apply Transpacific Partnership (CPTPP), 8.0 6.8 7.1 7.0 3,964 the 2010s. By 2024, the county’s population. The faster passive sensors and other near- and more recently the EU Vietnam 4,000 3,656 7.0 3,120 population growth rate is expected to growth rate of the people patient monitoring technologies FTA (EVFTA). These trade 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 2 will create a burden on that link an individuals’ behaviour on many goods including medical 4.0 total population of 101.1 million . 2,000 healthcare facilities and to treatment. equipment and will help position 3.0 demand for care services. Vietnam as an attractive investment As Vietnam’s birth-rate declines, its At the same time, electronic 1,000 3.0 2.0 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
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