HCM City: Solutions for health system development are synchronously implemented
25/10/2023 02:31 PM
Vietnam’s continued economic development, growth of the middle class, and increasing demand for high-quality healthcare services are crucial drivers for healthcare system here. To upgrade and expand their facilities, improve operational efficiency, and provide better services, they are investing to equip their facilities with advanced medical devices. Promoting HCM City as a medical hub of ASEAN is vital to reduce the number of people travelling abroad for medical care and boost medical tourism.
According to the Economist Intelligence Unit (EIU), Vietnam’s healthcare expenditure was approximately USD18.5 billion in 2022, representing 4.6% of the country’s GDP.
Together with the birth rate decline, Vietnam’s aging population is resulting in higher demand for healthcare services and products. According to the WHO, non-communicable diseases (NCDs) are an increased mortality and morbidity burden that accounts for approximately 74% of total deaths in Vietnam.
Public and private hospitals in Vietnam are upgrading their facilities and opening new departments for specialty treatment, providing opportunities for U.S. suppliers.
Public hospitals dominate the healthcare system and account for 86% of the total hospital number in Vietnam. However, the Vietnamese healthcare sector is currently facing several challenges:
Most hospitals are outdated and face chronic overcrowding. Hospitals in Hanoi and Ho Chi Minh City receive up to 60% of the country’s patients and operate at 200% of the capacity. Much of the existing medical equipment in public hospitals in Vietnam is obsolete and needs replacement. Many hospitals lack sufficient equipment for surgery and intensive care units. Vietnamese public hospitals rely largely on a state budget to upgrade their facilities, equipment, and services. The total budget for the health sector has increased but is still too low to meet the demands. A shortage of qualified medical staff is common in many hospitals. Doctors and nurses work under stressful conditions and wages are relatively low. As high-quality healthcare service is not yet widely available in Vietnam, the Ministry of Health estimates that around 40,000 Vietnamese people spend approximately USD2 billion to travel abroad for medical services every year.
More than 90% of medical equipment in Vietnam is imported, and the medical device market was valued at 1.5 billion USD in 2022. The sector is forecast to grow at a Compound Annual Growth Rate (CAGR) of 9.7% from 2021-2026, reaching USD 2.1 billion by 2026.
The Vietnamese government encourages the import of medical equipment because local production cannot meet demands. Imported medical equipment has low import duties and no quota restrictions.
The Ministry of Health of Vietnam (MOH) is responsible for state management of medical devices, implementation of legislative documents, national technical regulations, strategies, policies, and plans on medical devices, conducting inspections, settling complaints/denunciations, and action against violations related to medical devices.
The demand for investment in medical equipment will continue to increase. The most imported and used medical equipment include consumables, diagnostic imaging, dental products, orthopedics, prosthetics, and patient aids.
A recent BMI report shows that about 90% of medical equipment in Vietnam is imported, with major suppliers from Korea, PRC, Japan, the United States, and Germany, which account for 71% of medical equipment imports. Domestic manufacturers can only meet the demand for basic medical supplies. They produce products such as hospital beds, scalpels, cabinets, scissors, and disposables. They generally offer limited/no warranty or after-sales services, especially in isolated areas of the country.
Other strong areas of growth include operating theaters, emergency equipment, sterilizing equipment, and monitoring equipment.
Vietnam also receives a large amount of international aid in the form of loans and donated medical equipment. Several small projects are currently taking place in Vietnam, including those funded by the World Bank and the EU.
HCM City is taking steps to elevate its healthcare services to become a medical hub of ASEAN by offering a wide range of high-quality health services for locals and foreigners, health experts said.
“Promoting HCM City as a medical hub of ASEAN is vital to reduce the number of people travelling abroad for medical care and boost medical tourism,” said Assoc. Prof. Lương Ngọc Khuê, general director of the Administration of Medical Service under the Ministry of Health.
To accomplish this goal, the health sector must focus on training high-quality human resources, foster international cooperation in education and research and promote advanced medical technologies and digital transformation to improve the quality of healthcare services, Khuê said at a seminar held last week in HCM City.
Proper investment in medical facilities and modern equipment and devices are also needed to realise the goal, according to Khuê.
Vietnamese patients spend around US$2 billion a year travelling overseas for medical treatment.
Illustrative image (internet)
According to Dr. Nguyễn Anh Dũng, deputy director of the city’s Department of Health, with around 130 hospitals, including 12 that are top-tier, fast-growing private healthcare and high adoption of advanced technologies in healthcare establishments, the city has huge potential to elevate its healthcare services.
The city’s health sector has implemented various measures to develop its healthcare system such as capacity improvement in disease prevention and control, investment in grassroots health networks, and fostering public health and emergency services.
It has also carried out seven major tasks to become a medical hub of ASEAN, including development of modern facilities, building high-tech medical zones under the hospital-university model, adoption of top-notch specialised technologies, and promoting a network of specialised healthcare facilities.
Research and development (R&D) and innovation in the healthcare sector have also been fostered.
The city is striving to provide a comprehensive range of healthcare services to meet the demand for examinations and treatment of locals and make it an attractive destination for medical tourism.
At present, the bilateral medical collaboration has expanded to other spheres, including HIV/AIDS, tuberculosis and seasonal influenza prevention and control, healthcare for military personnel, response to African swine flu outbreaks, and most recently in battling the COVID-19 pandemic.
HCM City aims to set up a high-tech healthcare centre in the coming time in tandem with medical tourism development to attract more tourists to the city, he said.
It will also strive to turn traditional medicine into a highlight of the city’s medical tourism and the pharmaceutical industry into a spearhead economic sector, as well as ensure sufficient supply of medicine and vaccines, Phong added.
Joining the virtual dialogue, US Ambassador to Vietnam Daniel Kritenbrink spoke highly of Vietnam’s efforts in promoting healthcare development in recent years and curbing the spread of COVID-19.
He affirmed that the fight against the ravaging pandemic is an outstanding milestone, marking joint efforts in mutual support and learning each other between the US and Vietnam during the past 25 years.
US businesses and the American Chamber of Commerce in Vietnam (AMCHAM Vietnam) have paid heed to supporting Vietnam in the field of healthcare, the diplomat said.
At the dialogue, US companies voiced their hope to continue joining hands with medical schools and facilities in the city.
The event also witnessed the launch of the AmCham Vietnam’s 2020 Healthcare White Book, highlighting innovative products and services US healthcare companies offer in Vietnam, policy recommendations to promote the health and wellness of Vietnam’s population and support the growing strength of Vietnam’s healthcare industry.
PV
Sickness
Work Injury and Occupational Disease
Survivor’s
Old-age
Maternity
Unemployment
Medical (Health Insurance)
Certificate of coverage
VSS - ISSA Guidelines on Social Security