DIPLOMA IN MANAGEMENT
05/2024
BDNG3103
INTRODUCTORY INTERNATIONAL BUSINESS
NO. MATRIKULASI : 92102308583301
NO. KAD PENGENALAN : 921023-08-5833
NO. TELEFON : 016-4178 763
E-MEL : cwesley@oum.edu.my
PUSAT PEMBELAJARAN : OUM Ipoh Learning Centre
Vietnam would be a suitable target market for the healthcare entrepreneur considering expansion
into the ASEAN region. Expanding into Vietnam's healthcare market presents a compelling
opportunity for entrepreneurs seeking growth within the ASEAN region. Vietnam has a strong
healthcare system with a growing pharmaceutical market, making it an attractive destination for
healthcare companies looking to expand their presence in the region.
Vietnam boasts a robust healthcare system that has been evolving to meet the needs of its
population, indicating a favorable environment for healthcare companies looking to expand. The
country's healthcare infrastructure and services have been improving, offering opportunities for
innovative healthcare solutions and services to thrive in the market.
Vietnam's pharmaceutical market has been expanding steadily, with the medical devices market
valued at $1.1 billion in 2017 and predicted to grow at a CAGR of over 9% during 2017-2022.
The increasing demand for pharmaceutical products and medical devices in Vietnam signifies a
growing market that can support the expansion of healthcare companies.
This trend highlights the region's potential as a hub for healthcare services, creating opportunities
for healthcare companies to tap into the growing demand for quality healthcare products and
services.
Vietnam's medical equipment market is valued at nearly US$1.3 billion with an annual growth
rate of 12% - 15%, indicating a thriving sector with substantial growth potential.
Factors contributing to Vietnam's growth include its young population, stable political system,
low inflation rates, strong manufacturing sector, and increasing foreign direct investment (FDI).
Overview of the target market’s size, demographics, and growth potential for Vietnam
Vietnam has a population of over 97 million people, with a growing middle class and increasing
urbanization, indicating a sizable market for healthcare products. The country has a young
population, with a median age of around 32 years, suggesting long-term growth potential and
demand for healthcare services.
Vietnam's healthcare sector is evolving, with both public and private providers contributing to
the market's growth and development. The country's healthcare system is undergoing
improvements, creating opportunities for new entrants to offer innovative solutions and services
to meet the evolving healthcare needs of the population.
Vietnam's healthcare sector presents significant opportunities for growth and innovation, driven
by the country's evolving healthcare system and demographic trends. Vietnam is moving towards
a universal healthcare system through government-provided social health insurance, aiming to
improve access to healthcare services for its population.
This transition signifies the government's commitment to enhancing healthcare accessibility and
affordability, creating a conducive environment for healthcare companies to introduce innovative
solutions.
The Vietnamese healthcare system has been undergoing improvements, with both public and
private providers contributing to the market's growth and development. These enhancements
offer opportunities for new entrants to introduce innovative solutions and services that cater to
the evolving healthcare needs of Vietnam's population.
The Vietnam-connected healthcare market is projected to experience substantial growth,
reaching $2,486.65 million by 2030 with a CAGR of 28.63%. This growth indicates a rising
demand for connected healthcare solutions, presenting opportunities for companies to leverage
technology and digital health innovations in the Vietnamese market.
Vietnam's medical equipment market is valued at nearly US$1.3 billion with an annual growth
rate of 12% - 15%, highlighting a thriving sector with significant potential for investment and
expansion. The high reliance on imported medical equipment in Vietnam underscores
opportunities for local production or partnerships to meet the growing demand in the market.
Vietnam's evolving healthcare system, demographic trends, and market growth projections create
a favorable landscape for healthcare companies seeking to expand their presence in the country.
Entrepreneurs can capitalize on these opportunities by introducing innovative solutions,
leveraging technology advancements, and addressing the evolving healthcare needs of Vietnam's
young and growing population.
Current Competitive Landscape in Vietnam
Vietnam's healthcare market is evolving, with both public and private providers contributing to
the market's growth and development. The Vietnam-connected healthcare market is projected to
grow from $331.8 million in 2022 to $2,486.65 million by 2030, registering a CAGR of 28.63%.
This growth indicates a strong demand for innovative healthcare solutions and services in the
country.
The medical devices market in Vietnam was valued at $1.1 billion in 2017 and is predicted to
expand at a CAGR of over 9% during 2017-2022. This growth suggests a significant opportunity
for medical device manufacturers to enter the market and meet the growing demand for advanced
healthcare technology.
The healthcare sector in Vietnam is characterized by both domestic and international players,
creating opportunities for new entrants to differentiate themselves and offer innovative solutions
to meet the evolving healthcare needs of the population.
Vietnam's competitive landscape is dynamic, driven by various factors that contribute to its
attractiveness for businesses. Vietnam's growth factors, including a young population, stable
political system, low inflation rates, a strong manufacturing sector, and increasing foreign direct
investment (FDI), create a conducive environment for business expansion.
The country's ambition to move up the value chain and attract higher value-added manufacturers
reflects its commitment to enhancing competitiveness and attracting investments.
Vietnam has emerged as an important market for U.S. agricultural exports in Southeast Asia,
with significant growth in U.S. agricultural exports to the country. Investors from Hong Kong,
China, Singapore, and South Korea view Vietnam as a lucrative market with high returns on
investment, indicating strong interest and confidence in the country's business landscape.
Businesses are increasingly relocating to Vietnam due to its strategic location, growing economy,
favorable business environment, and opportunities for expansion. The country's attractiveness as
an investment destination is driven by factors such as market potential, skilled labor force,
government incentives, and infrastructure development.
Legal and Regulatory Requirements
Vietnam has specific legal and regulatory requirements governing the healthcare industry.
The Vietnamese government oversees issuing detailed regulations on standards and compliance
with trade laws and agreements in the healthcare sector. The 2016 Law on Medical Examination
in Vietnam outlines rights and responsibilities for medical establishments, emphasizing
compliance with legal standards and regulations.
In terms of licensing for Healthcare Professionals, Healthcare professionals (HCPs) in Vietnam
are required by law to obtain practicing certificates from the Ministry of Health (MOH) or the
provincial Department of Health (DOH) based on their workplace and nationality.
Licensing issues can arise if healthcare professionals fail to comply with these requirements,
leading to legal risks and potential penalties.
Intellectual property protection is crucial in the healthcare industry to safeguard innovations,
patents, trademarks, and copyrights.
Ensuring proper registration of intellectual property rights can mitigate risks of infringement,
unauthorized use, or legal disputes in Vietnam's healthcare market.
In compliance with new regulations, staying updated with new regulations on rights and
responsibilities of medical establishments under the Law on Medical Examination is essential to
ensure compliance and avoid legal pitfalls. Failure to adhere to these regulations can result in
legal consequences, fines, or disruptions to business operations.
Navigating Vietnam's healthcare industry requires a thorough understanding of the legal and
regulatory landscape, including licensing requirements for healthcare professionals, intellectual
property protection, compliance with standards, and adherence to new regulations. Entrepreneurs
expanding into Vietnam must prioritize legal compliance to mitigate risks and ensure a smooth
entry into this dynamic market.
Political Stability
Vietnam's political stability plays a significant role in shaping the business environment within
the country. Vietnam's stable political system is considered a key factor contributing to the
country's growth and economic development. The firm held in power by the CPV contributes to
political stability, which is essential for attracting foreign investments and fostering business
confidence.
The young population, low inflation rates, strong manufacturing sector, and increasing foreign
direct investment (FDI) are indicators of a stable economic environment conducive to business
operations. These factors contribute to Vietnam's attractiveness as an investment destination,
offering opportunities for businesses to thrive and expand within the country.
The country's stable political landscape and economic potential make it an appealing destination
for foreign investments seeking long-term growth opportunities.
Despite occasional political turmoil, Vietnam remains an attractive destination for doing
business, with experts suggesting that the benefits outweigh the risks. Efforts to address issues
like corruption are well-intentioned but require nuanced understanding to prevent
misinterpretation as instability by foreign interests.
Efforts to address issues like corruption, while well-intentioned, could be misinterpreted as
instability by foreign interests, highlighting the need for nuanced understanding of the political
landscape.
Vietnam's economic and political stability is recognized as a significant advantage compared to
other Asian nations, providing a favorable environment for businesses to operate and thrive. This
stability enhances investor confidence, supports sustainable growth, and creates opportunities for
businesses to establish a strong presence in the Vietnamese market.
Impact on Business Operations
Political stability in Vietnam fosters a conducive atmosphere for business operations by
promoting investor confidence, economic growth, and long-term sustainability. This stability can
help entrepreneurs to navigate the challenges of entering a new market and focus on building
long-term relationships with partners and customers in Vietnam.
A stable political environment reduces uncertainties for businesses, enabling them to make
informed investment decisions and plan for future growth strategies. Political stability can lead to
increased collaboration between businesses and government agencies in Vietnam. This can
create opportunities for Malaysian healthcare entrepreneurs to work closely with local partners
and authorities to develop innovative healthcare solutions tailored to the Vietnamese market.
Vietnam's political stability, coupled with its economic growth and favorable business
environment, presents opportunities for entrepreneurs looking to expand into the country.
Understanding the nuances of the political landscape and leveraging the advantages of stability
can help businesses navigate challenges and thrive in Vietnam's dynamic market.
Entry Modes for Expanding into Vietnam
To expand market into Vietnam, one can use Greenfield Investment method. Establishing a new
subsidiary or branch office from scratch involves setting up a new entity in Vietnam, which can
be a time-consuming and resource-intensive process. However, it allows for complete control
over the business operations and can be a long-term investment strategy. This means that
entrepreneurs can tailor their healthcare products and services to meet the specific needs of the
Vietnamese market without external constraints, ensuring a more customized approach to their
expansion.
Another option will be purchasing an existing company in Vietnam can be a faster way to enter
the market, as the infrastructure, customer base, and regulatory compliance are already in place.
However, it requires due diligence to ensure the acquired company is financially stable and
compliant with local regulations. While purchasing an existing company offers speed, it requires
thorough due diligence to ensure that the acquired business is financially stable and compliant
with local regulations. Conducting a comprehensive assessment of the target company's financial
health, legal standing, operational efficiency, and market position is crucial to mitigate risks and
ensure a successful acquisition.
Acquiring an existing company in Vietnam grants access to established networks of suppliers,
partners, and customers. This can be advantageous for entrepreneurs seeking to quickly integrate
into the local healthcare ecosystem, build relationships with key stakeholders, and expand their
market reach through the acquired company's existing network.
Partnering with a local company to share resources and expertise like Joint Venture can be a
strategic entry mode, as it combines the knowledge of the local partner with the entrepreneur's
innovation and technology. This can help navigate regulatory requirements, distribution
channels, and market access effectively.
Besides that, franchising with the use of a company's trademark, brand, or business model in
Vietnam. This entry mode allows for rapid expansion by leveraging the existing brand
recognition and business model of the franchisor. However, it requires adherence to strict
franchise agreements and ongoing royalty payments.
Licensing can also be considered as granting permission to another company to produce or
distribute the product in Vietnam. This entry mode can be a cost-effective way to enter the
market, as it involves a one-time licensing fee and ongoing royalty payments. However, it
requires careful selection of the licensee to ensure compliance with local regulations and quality
standards.
Plan to Secure Financing or Capital for this Market Expansion
Securing financing or capital for expansion into Vietnam can involve exploring various options
such as partnerships with local companies. An entrepreneur should explore these options and
tailor their financing strategy to their specific business needs and objectives.
In other words, expanding into Vietnam's healthcare market requires careful consideration of
financing options.
Establishing partnerships with local companies can facilitate market access and provide access
to financing opportunities within the country. Collaborating with local companies in Vietnam
can provide access to their networks, market knowledge, and potential financing sources.
Local partners can offer insights into the regulatory environment, consumer preferences, and
investment opportunities, enhancing the chances of securing financing for expansion.
Joint ventures with local companies can be a strategic way to share resources and expertise,
potentially providing access to capital and financing opportunities. Forming a joint venture with
a local company in Vietnam allows for shared resources, risks, and profits. Local partners can
contribute capital, expertise, and market understanding, making it easier to secure financing for
expansion while navigating the complexities of the Vietnamese market.
Obtaining bank loans from local financial institutions can be a viable option for financing
expansion into Vietnam, although interest rates and terms may vary. Obtaining bank loans from
Vietnamese financial institutions can provide a source of capital for expansion.
Entrepreneurs should prepare a solid business plan, financial projections, and collateral to
increase their chances of securing favorable loan terms from banks in Vietnam.
Venture capital firms specializing in healthcare and technology sectors may be interested in
investing in your business, providing capital for expansion. Venture capital firms specializing in
healthcare or technology sectors may be interested in investing in innovative healthcare
products or services.
Entrepreneurs should pitch their business idea, demonstrate growth potential, and highlight
market opportunities to attract venture capital funding for expansion into Vietnam.
Via government incentives, The Vietnamese government may offer incentives or grants for
healthcare product expansion, particularly for companies focusing on public health or rural
healthcare. Exploring government initiatives or grants in Vietnam aimed at supporting
healthcare industry growth can provide additional funding opportunities.
Entrepreneurs should research available programs, meet eligibility criteria, and prepare
compelling proposals to secure government funding for their expansion plans.
Besides that, establishing partnerships with international companies that have experience in
the Vietnamese market can provide access to capital and financing opportunities. Partnering
with international companies experienced in the Vietnamese market can offer access to capital,
technology transfer, and market insights.
Leveraging the resources and expertise of established international partners can enhance
credibility and increase the likelihood of securing financing for expansion into Vietnam.
In conclusion, entrepreneurs expanding into Vietnam's healthcare market should consider
these financing options strategically to secure the necessary capital for successful market entry
and growth. Each approach offers unique advantages and considerations that can be tailored to
meet specific business needs and objectives in the dynamic Vietnamese market.
Vietnam's strong healthcare system, growing pharmaceutical market, and favorable business
environment make it an attractive destination for healthcare companies looking to expand their
presence in the ASEAN region. Entrepreneurs can leverage the country's evolving healthcare
landscape and market opportunities to establish a successful foothold in this dynamic and
promising market.
PART II (OCP with 5 Postings)
POSTING 1
POSTING 2
POSTING 3
POSTING 4
POSTING 5
