Frost & Sullivan - Economic 360 for Vietnam - Growth Prospects and Emerging Opportunities
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Transcript of Frost & Sullivan - Economic 360 for Vietnam - Growth Prospects and Emerging Opportunities
Economic 360 for Vietnam: Economic 360 for Vietnam: Growth Prospects and Emerging OpportunitiesGrowth Prospects and Emerging Opportunities
RhenuRhenu BhullerBhuller
Vice PresidentVice President
Frost & Sullivan AsiaFrost & Sullivan Asia--PacificPacific
[email protected]@frost.comOctober, October, 20122012
Vietnam—Country Overview
Hanoi
Vinh
Hue
Da Nang
Quy Nhon
331 698 km2divided into 59provinces and 5provincial levelmunicipalities
The 14th most
54 officiallyrecognized ethnicgroups, with Vietcomprising 86% ofthe total population
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Quy Nhon
Ho ChiMinh City
The 14 mostpopulous country inthe world with apopulation of 91.5million (est. July,2012) and growthrate of 1.1 percentin 2011.
Urbanization rate togrow about 3.3percent annually,reaching an urbanpopulation of 30million in 2014.
One of world’s top exporters of rice, coffee, cashew nuts and black pepper.
Macro Economic Indicators: Healthcare
Healthcare Indicators 2010
Population (M) 88.3
Population Growth Rate (%) 1.0
Birth Rate (per 1,000) 17.0
Mortality Rate (per 1,000) 6.8
Life Expectancy (Female) (years) 74.7
Life Expectancy (Male) (years) 69.5
Healthcare Indicators: Vietnam, 2010
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Key FeaturesKey Features
• Vietnam’s population size is expected to expand about 9.2 percent from 2006 to 2014,
and is likely to grow 1.0 percent annually from 2010–2014.
• The increase of life expectancy (73.9 years in 2006 to 74.7 years in 2010) have led to
an increase in aging population.
• Vietnam’s population size is expected to expand about 9.2 percent from 2006 to 2014,
and is likely to grow 1.0 percent annually from 2010–2014.
• The increase of life expectancy (73.9 years in 2006 to 74.7 years in 2010) have led to
an increase in aging population.
Life Expectancy (Male) (years) 69.5
Source: Datamonitor, Worldbank, http://vietnam.unfpa.org, Frost & Sullivan a
One of the world’s fastest-growing economies - 2010 GDP growth rate @ 6.78%, GDP per capita at ~ US $1,200
Vietnam’s economy has witnessed a structural change from a planned economy to a market-oriented economy. Between 2000 and 2008, several reforms were taken to liberalize and open up the economy to foreign investment.
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Vietnam’s total export revenue in 2010 reached US $71.6 billion, a 25.5% increase compared with that of 2009
15 15IMPORTS EXPORTS
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0
5
10
15
0
5
10
15
2010 (US$Billion) 2009 (US$Billion)
FDI in Vietnam has increased considerably. In 2010, foreign investors registered capital of ~ US$18.6 billion, in which the actual disbursed capital came to $11 billion
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Vietnam: Health Care Delivery System
Healthcare services in Vietnam are dominated by the public sector and as of 2009, approximately 93.0 percent of hospitals were public.
Healthcare Delivery System: Vietnam, 2010
Government
MINISTRY OF HEALTH•14 Department and Administration•The Cabinet•Inspectorate
Provincial People’s Committee
PROVINCIAL HEALTH SERVICE
Professional Units under Ministry •Curative:30 hospitals with beds
•Preventive:17 institutes or centres
•Quality Control: 5 institutes or centres
•Training:14 schools or colleges
•Centre for health education and communication
:17 units
Professional Units under the PHS •General and specialized hospitals for curative care
•Preventive Health Centres
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Public sector offers healthcare services through four tiers: commune, district, provincial, and central. The Ministry of Health (MOH), which is part of the central tier, handles health policies and administration.
Source: Department of Health, Vietnam; Frost & Sullivan analysis.
SERVICE•Office•Inspectorate
PROVINCIAL HEALTH SERVICE•Office•Inspectorate
People’s Committees at District
People’s Committees at Communes
COMMUNAL HEALTH CENTRES•Head•Healthcare Workers
•Preventive Health Centres
•Quality Health Centres
•Training Middle Level Schools or Colleges
•Centre for health education and communication
•District General
hospitals
•Clinics
•District Preventive
Health Centres
Village Health Workers
Healthcare Expenditure
Government and Private Expenditure on Health: Vietnam, 2006–2012
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
He
alt
hc
are
Ex
pe
nd
itu
re($
Bill
ion
)
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• Driven primarily by the state's healthcare insurance scheme, the share of total healthcarespending accounted for by the public sector will continue to rise.
• The share of total out-of-pocket private healthcare expenditure is expected to fall in thecoming years. According to WHO, in 2008, 90.0 percent of total private healthcare expenditurewas out of pocket. However, due to growing concerns over long-term health protection, privatehealthcare insurance will become increasingly popular, a trend that will be supported by awider array of health insurance options and greater prosperity in urban areas.
Source: WHO, Frost & Sullivan analysis.
2006 2007 2008 2009 2010 2011 2012
Private Expenditure 2.63 2.98 3.98 4.19 4.53 4.77 5.02
Government Expenditure
1.29 1.99 2.05 2.52 2.76 3.01 3.25
0.00
Healthcare: Business Opportunities
In Vietnam, new health service facilities are expected to be charged an enterprise income tax of 10percent rather than the previous 28 percent.
The quality of public hospitals in Vietnam is likely to improve following the establishment of private hospitals by Singapore-based Thomson International and Pacific Healthcare, Malaysia-based Columbia Asia, and the French Hospital of Hanoi, owned by the French company Eukaria S.A.
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The Vietnamese government’s healthcare development plan, extending to 2020, aims for a doctor-patient ratio of 8:10,000, pharmacists of 2:10,000, and 25 hospital beds per 10,000 patients.
Vietnam’s healthcare expenditure will grow over the next five years with its healthcare spending as a percent of GDP surpassing most ASEAN countries and growing up to 8.3% of the GDP in 2014.
The Vietnamese government aims to modernize traditional medicine by 2020. According to Ministry of Health, hospitals that offer traditional alternatives to patients will receive new equipment in 2015
Source: Frost & Sullivan analysis.
Case Study: Unilever Vietnam – Key Learningsfor Success
LONG TERM INVESTMENT
LOCAL PARTNERSHIPS SKILLS TRANSFER
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NATIONAL PRIORITIES BEYOND URBAN
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Additional Information
Donna Jeremiah
Director Corporate Communications, Asia [email protected]: +61 (02) 8247 8927
Rhenu Bhuller
Vice President, Healthcare PracticeAsia Pacific [email protected]
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Jessie Loh
ManagerCorporate Communications, Asia [email protected]. (65) 6890 0942
Carrie Low
ExecutiveCorporate Communications, Asia [email protected]. (603) 6204 5910