Vietnam Pharmaceuticals & Healthcare Report Q4 2013 - New Market Study Published

The government's promise to improve healthcare conditions through rising expenditure will bring potential growth to pharmaceutical firms over the longer term. However, we highlight that there may be a risk of not fulfilling such aims, given extensive bureaucracy and rampant corruption. In addition, the macroeconomic condition was less -than optimistic between Q1 and Q2 this year. Should this continue, it will be challenging for the country to invest in healthcare substantially.

Headline Expenditure Projections

* Pharmaceuticals: VND59,214bn (US$2.84bn) in 2012 to VND69,455bn (US$3.32bn) in 2013; +17.3% in local currency terms and +17.1% in US dollar terms. Forecast broadly unchanged from Q313.
* Healthcare: VND201,466bn (US$9.66bn) in 2012 to VND232,015bn (US$11.1bn) in 2013; +15.2% in local currency terms and +15.0% in US dollar terms. Forecast broadly in line with Q313.

Risk/Reward Rating: Vietnam's Pharmaceutical Risk/Reward Rating (RRR) score for Q413 is 50 out of the maximum 100 in our newly improved RRR system. The country scored above average for some indicators and sub-indicators, including overall market expenditure and sector value growth, pensionable population. Consequently, with this moderate score Vietnam continues ranked 12th behind Thailand but in front of Indonesia out of the 19 key markets in Asia Pacific.

Full Report Details at
- http://www.fastmr.com/prod/712843_vietnam_pharmaceuticals_healthcare_report_q4_2013.aspx?afid=301

Key Trends And Developments

* In August 2013, in an online meeting held by the Vietnamese government electronic portal, chinhphu.vn, the implementation of the health insurance law in 2010-2011 compensated the deficit in 2009 and had a surplus. However, due to the increase in health services fee, Vietnam Social Insurance calculated that if such adjustments are applied in 2013, the fund may run a VND10trn deficit.
* In July 2013, Terumo BCT (a Terumo company) has started constructing its second manufacturing facility in Vietnam. The manufacturing facility, when open in 2015, will support growth and demand for blood and cellular therapy products globally. Terumo BCT serves three primary customer segments: blood centres, therapeutic apheresis & cell collections and cell processing. The Vietnam facility is part of Terumo's broader strategy that includes investments in its existing US manufacturing operations at its global headquarters in Colorado, and its manufacturing facilities in Northern Ireland and India.
* In the same month, Vietnam's Pharmaceutical Management Department ordered a recall of Relab 20%, a drug solution for intravenous infusion manufactured by India's Reliance Life Science. The department has also suspended the distribution of the drug in the country. The recall has been ordered due to the drug's harmful side effects. The importers and the distributor of Relab 20% were asked by the department to immediately withdraw the drug from the domestic market.

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