Health spending in Vietnam is forecast to reach 23 billion USD this year 2022

Workshop “Strengthening public-private partnership – promoting sustainable development of the industry” medical” was organized by the Investment Newspaper on May 18 with the participation of experts from the Ministry of Health, the Ministry of Planning and Investment, the World Health Organization in Vietnam, a senior medical expert of the Bank, and the Ministry of Planning and Investment. World Bank (WB), European Business Association in Vietnam (EuroCham) and representatives of foreign medical and pharmaceutical enterprises.

Information announced at the conference said that Vietnam is becoming an attractive destination for businesses in the medical and pharmaceutical sectors. According to market research firm Fitch Solutions, healthcare spending in Vietnam is expected to reach $23 billion by 2022.

Speakers participating in the workshop – Photo: Chi Cuong

Meanwhile, research by the international market survey company Business Monitor International (BMI – the world’s leading economic and financial research and evaluation organization based in London, UK) also shows that the industry Vietnamese pharmaceuticals can reach a scale of 16.1 billion USD by 2026.

According to Deputy Minister of Planning and Investment Tran Duy Dong, to improve the quality in the health sector, striving to meet the needs of people’s health resources, mobilizing financial resources for new investment on infrastructure and equipment is a very important requirement.

In Vietnam, the Party’s policy and stance on the mechanism to attract private human resources to infrastructure development have been concretized in the process of formulating the PPP law. However, the implementation of the PPP law still faces many limitations.

According to World Bank statistics, by 2019 there are 58 projects on the list of PPP projects in the health sector that have been proposed. However, of these projects, only 13 projects have progressed to the pre-feasibility study report stage, 6 projects to the feasibility study report stage, 5 projects to the bidding stage, contractor selection. investment, and there are 2 projects to the contract signing stage.

PPP projects in the health sector are mostly concentrated in a few provinces: Hanoi (1 project), Ho Chi Minh City (6 projects), Hai Phong (1 project), Da Nang (1 project). , Quang Ninh (2 projects), Quang Nam (1 project), Ca Mau (1 project), Ben Tre (1 project).

Although this is a potential field, it has not yet attracted many investors. From 2019 to now, in the health sector, there have been no more investment projects in the form of PPP.

Health spending in Vietnam is forecast to reach $23 billion this year, 2022 - Photo 2.

Many modern machines at hospitals are used in the form of joint ventures and associations – Illustration

At the workshop, some comments said that Vietnam has the potential to develop a promising form of public-private partnership, with dynamic human resources, a growing middle-income class, the demand for High-quality products and services are also on the rise.

Public-private partnerships in the service sector can open up further contributions from the private sector towards a comprehensive, advanced and sustainable healthcare system. As such, the regulatory framework is the key to facilitating business operations, creating a sustainable and predictable environment.

Also at the workshop, some commented that Vietnam has become a high value-added investment destination in the pharmaceutical sector among ASEAN countries. However, there are still barriers when doing business in Vietnam, in which a more appropriate legal framework is needed to promote PPP to realize the full potential of this form of investment.

According to the Ministry of Planning and Investment, investment under the mode of public-private partnership (PPP) is an investment method made on the basis of a definite-term cooperation between the State and private investors through the signing of a contract. and implementing PPP project contracts to attract private investors.

The health sector and investment scale in the health sector are specified in the PPP law and Decree 35/2021/ND-CP.

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