Where can Vietnam sell its locally made medical supplies?

Oct 15th at 10:23
15-10-2015 10:23:56+07:00

Where can Vietnam sell its locally made medical supplies?

Domestic medical supply and equipment manufacturers have found it difficult to sell their products in the home market, including large hospitals.


The annual revenue of the Vietnam medical equipment market is estimated at $800 million. The figure is expected to reach $1.2 billion by 2016. An 18 percent growth rate in 2012-2017 period is expected.

However, 90 percent of medical equipment available in the market are imports from the US, Japan, Germany and Japan.

In 2013, Vietnam imported $385 million worth of medical equipment, while the figure rose to $407 million in 2014.

The Ministry of Health wants domestically made equipment to account for 60 percent of total items by 2018.

However, importers pointed out that Vietnam can only make simple products such as beds, nightstands, cotton, bandages, gauze and needles.

Truong Hung, deputy chair of the HCM City Medical Equipment Association, warned that Chinese products have been increasing their presence in Vietnam. Though Chinese suppliers do not have big opportunities to win bids to provide equipment to hospitals, more and more Chinese machines have been sold through the border in the north.

Hung fears that Chinese companies are likely to relocate their medical equipment factories to Vietnam in the future.

The HCMC Medical Equipment Association’s members all complained at a seminar held in late August that domestic companies encountered barriers in selling domestic products to hospitals.

The representative of a company that makes disposable medical equipment complained that the company’s products, though made with the high-quality input materials imported from Europe and the US, are always inferior to foreign-made products in the eyes of buyers or hospitals.

He heard that HCM City authorities are considering offering preferences to medical equipment manufacturers in terms of land access and tax.

However, the preferences may not attract manufacturers once they cannot find who they will sell products to.

Meanwhile, an executive from the Viet Han Medical Equipment, noted that in many procurement projects, investors only accept import products, while refusing Vietnam-made products.

Danamenco, a medical equipment manufacturer based in Da Nang, complained that it won bids to provide equipment in Laos and Myanmar, but found it difficult to attend the bids in the home market.

Investors usually require a wide range of products which are out of reach of domestic manufacturers.

Sources said that the HCM City Health Care Department is going to open a bid for a procurement project worth VND130 billion. However, domestic manufacturers and import companies do not plan to attend the bid because of the department needs many kinds of of equipment.

vietnamnet



NEWS SAME CATEGORY

Wood exporters urged to get legal

Vietnamese exporters should ensure that the timber they are exporting is legal and obtain certificates of origin for the strict EU market, experts suggested at a...

Domestic milk supply meets 40% of VN demand

Dairy farming in Vietnam has grown rapidly in recent years with the 2014 milk output rising by 20% against 2013, but domestic supply met just 40% of demand...

S Korea remains Viet Nam's top market for squid, octopus

South Korea remains Viet Nam's largest market for squid and octopus exports, accounting for a 37.7 per cent share, which however represents a year-on-year decrease...

Shrimp exports on the road to recovery

The Vietnam Association of Seafood Exporters and Producers (VASEP) anticipate shrimp exports to the US will grow following a final decision by the US Department of...

Fake fertiliser plagues market

State offices should take strong action against counterfeit and shoddy fertiliser producers, experts said at a conference on the restructuring of the local...

Government proposes raising special consumption tax on cars

The Government wants to raise the special consumption tax on vehicles with high engine displacement, according to a statement it delivered to the National Assembly...

Luxury tax adjustment to pave way for low-cost cars

Low-cost cars with low cylinder capacity are expected to flow to Vietnam thanks to an advantageous luxury tax.

Cashew exports to top $2.2 billion

Cashew export revenue is expected to reach US$2.2 billion this year, after reaching robust growth due to higher prices and demand, according to the Ministry of...

MOF criticized for failure to control milk prices

The sky-high prices of formula milk products for children aged under six have angered many consumers, who question why domestic prices remain high despite the sharp...

Many farmers give up as US chicken sells at dirt-cheap prices

Vietnamese farmers, who suffered from big losses for a long time due to high input costs and low selling prices, cannot hold out anymore. Cheap chicken imports from...

Commodity prices


MOST READ


Back To Top