Key Highlight
- The logistics industry currently accounts for 15-20% of Vietnam’s GDP. The fastest-growing sector in Vietnam.
- In 2021, healthcare spending is estimated to reach $22.7 billion. The compound annual growth rate (CAGR) was around 12.5 percent from 2017 to 2021.
- About half of Vietnam’s total medical equipment imports come from Japan, Germany, the United States, China, and Singapore.
20% Annual Growth Rate
The Logistic Sector in Vietnam business is one of Vietnam’s fastest-growing industries. It is expected to grow faster than the country’s GDP growth rate. The logistics service currently contributes 15-20% of Vietnam’s GDP. The current major logistical hubs in Vietnam are Ha Noi (North) and Ho Chi Minh City (South). In the first three quarters of 2020, the country’s import-export receipts were close to $390 billion. According to the General Statistics Office, this is a 1.8 percent increase over the same period last year (GSO). By 2025, the Vietnamese government hopes to attain an annual logistics growth rate of around 20%.
Growth of logistic business
In the first quarter of 2021, Vietnamese logistics companies reported excellent business results. Transimex is a logistics company that offers international freight forwarding, warehousing, domestic transportation, and distribution services. Transimex Joint Stock Company (TMS) reported a 104.9 percent increase in net revenue year over year to approximately 1.1 trillion VND in its quarterly financial report. Gemadept Corporation (GMD), the top company in the seaport business. It also had a solid first quarter, with net revenue of over 687.5 billion VND, up 14.4% from the previous year 2020. This growth in the logistic sector is also due to the rise in the demand for healthcare equipment.
Health Care Industry In Vietnam
The country has the potential to be a big market for healthcare and medical equipment. Vietnam’s healthcare spending was projected at $16.1 billion in 2017, accounting for 7.5% of the country’s GDP, according to Business Monitor International (BMI). Healthcare expenditures are expected to expand to $22.7 billion in 2021. From 2017 through 2021, the compound annual growth rate (CAGR) was roughly 12.5%. Pharmaceutical businesses reported excellent results in the first quarter of 2020, boosted by increased demand for pharmaceuticals because of the COVID-19 pandemic. DHG Pharmaceutical Joint Stock Company, the country’s largest pharmaceutical company, reported a profit of $5 million, up 31% year on year.
Import of medical equipment
According to EEPC India chairman Mahesh Desai, Vietnam’s booming medical equipment business fills over 90% of demand through imports. Japan, Germany, the United States, China, and Singapore account for approximately half of Vietnam’s overall medical device imports. The domestic market, which has roughly 50 producers, accounts for less than 10% of the market. The medical device industry in Vietnam has emerged as one of the most promising industries for international investment. As demand for medical equipment continues to rise. To encourage the industry, the local government has granted tax breaks.
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