MARKET RESEARCH

ON ORTHOPAEDIC HOSPITAL
IN VIETNAM

CIG VIETNAM
August 2020
 CONTENTS OUTLINE
A. INTRODUCTION .................................................................................................... 3

B. ORTHOPAEDIC HOSPITAL SITUATION IN VIETNAM .................................. 6

I. Healthcare Situation in Vietnam ........................................................................ 6

1. Healthcare industry in Vietnam ................................................................... 6

2. Hospitals system in Vietnam........................................................................ 7

3. Opportunity for Foreign investment .......................................................... 11

II. Orthopaedics..................................................................................................... 24

1. General information ................................................................................... 24

2. Injuries in Vietnam..................................................................................... 24

3. Current situation of Orthopedics in Vietnam ............................................. 29

4. Famous Orthopaedic hospital in Hanoi – Vietnam .................................... 30

5. Orthopeadic Association in Vietnam ......................................................... 32

III. Vinmec Times City Hospital ............................................................................ 34

1. Vinmec Hospital in general: ...................................................................... 34

2. Vinmec’s Orthopaedics Department in Vimec Times City ....................... 35

3. Orthopaedic doctors in the department of Orthopaedics: .......................... 39

IV. Achievement of Foreign Investor in Vietnam Hospital ................................... 40

C. CONCLUSION ...................................................................................................... 44

REFERENCES: ..................................................................................................... 46

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 A. INTRODUCTION
Vietnam at a glance
AREA (1): 331,690 km2
• 61 provinces (including 4 city-zones “Hanoi, Haiphong, Danang, Hochiminh
city” and one special zone Ba Ria “Vung Tau”)
• 601 districts
• 10,330 communes

POPULATION: 77 million
• Life expectancy at birth: 67 years
• Including: 54 ethnic minorities (9million people)
• Population growth: 1.5 million annually
• Children 0-4: 12 million
• Children 5-15: 23 million
• Total population under 18: 35 million
• Rural population: 80%

SOCIO – ECONOMY (2): annual GNP per capital, US$250

• Hanoi: US$ 480 per capita
• Mountainous area: US$ 80 per capita
• Cuurency unit: Vietnamese Dong (VND)
• Exchange rate: (August 2020) 1 USD = 23,060 VND
• Transition to the market economy “Doi Moi” since 1986

POLITICS: Socialist Republic

• Stable regime
• Decentralization
• Member of the ASEAN

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HEALTH (3):
• Infant mortality: 45/1,000
• Under five mortality rate: 61/1,000
• Maternal mortality rate: 110/100,000
• Women delivering at home in mountainous areas: 90%
• Immunization of children under one: 94%
• Malnutrition:
- Protein deficiency (children under five) 45%
- Xerophthalmia eliminated eliminated
- Iodine deficiency (population at risk) 94%
- Iron deficiency in pregnant women 52.5%
(% population)
• Access to safe water (rural) 45%
• Access to sanitation (rural) 26%
• Childhood immunization (six antigens) 94%
• Education:
- Adult literacy rate 91%
- Primary school enrolment rate 91% (net)
- School completion rate 61%

Vietnam, is located in the center of South-East Asia is bordered by Lao-PRD, Cambodia

in the West, and China in the North. The main geographical regions are: the Coastal
region, the Mountainous areas and the two large Deltas (Red River in the north and
Mekong in the south). Population densities vary widely, from sparsely inhabited
mountainous areas to the densely inhabited deltas. Only about 25% of the population
lives in the urban centers, the rest lives in the rural areas. The administration is broken
down into three levels: province, district and commune. The local units have provincial
councils and People’s Committees.

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General context (4)
• South-East Asia is a very heterogeneous region, comprising industrialized
countries such as Singapore, newly industrialized countries such as Malaysia
and Thailand, and very poor countries such as Vietnam, Laos and Cambodia.
• Populations can vary from 1.2 billion people (China) to 4.9 million people
(Laos). Vietnam, with 77 million people, is amongst the most populous
countries in the world.
• Climate can be harsh in the region and typhoons are quite frequent in Vietnam,
bringing devastating floods.
• 42% of the Vietnamese population (about 35 million) is below 18 and has no
experience of war.
• In 1986 the Government of Vietnam launched the “Doi Moi” (revival),
controlled transition towards a market economy. The on-going reforms have
produced positive impact on the development of the country. Income per capita
is increasing, and inflation has steadily slowed down, but the country still ranks
121st out of 130 countries analyzed in the UNDP Human Development Index.
The strengthening of links with the international community has brought the
country increasing international assistance. As a member of the UN and ASEAN,
Vietnam is determined to become an active participant in the international
community.
• Traditional strengths of Vietnam: inherited from its past, Vietnam has its
disposal an extended medical and education infrastructure. Mass organizations
such as the Women’s

(1)
Date GSO, 2000
(2)
World Bank
(3)
MoH
(4)
Children and woman in Vietnam (UNICEF)

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 B. ORTHOPAEDIC HOSPITAL SITUATION IN VIETNAM
I. Healthcare Situation in Vietnam
1. Healthcare industry in Vietnam
Demographic changes, rise in disposable income, and a steady economic growth has
led to a growing demand for healthcare services in Vietnam. In 2017, healthcare
expenditure accounted for 7.5 percent of the GDP and between 2017 and 2021 it is
predicted to grow at a Compound Annual Growth Rate (CAGR) of around 12.5 percent.
Overcrowding, shortage of medical staff, and obsolete equipment for surgery and
intensive care units are the major challenges in the healthcare sector in Vietnam. These
issues have forced Vietnamese people to travel abroad for medical treatment, with
overseas annual spending rising to US$ 2 billion. This further highlights the
opportunities in the industry in areas such as healthcare services, pharmaceuticals, and
medical devices.

a. Healthcare Industry
According to Business Monitor International (BMI), healthcare expenditure in
Vietnam in 2017 reached US$ 16.1 billion, which accounted for 7.5 percent of
the GDP. Healthcare spending is predicted to grow at a CAGR of 12.5 percent
between 2017 and 2021.

b. Segment growth
Between 2016 and 2020, pharmaceutical sales are predicted to grow the fastest at
a CAGR of 10.5 percent, compared to medical devices and private healthcare
spending, which will grow at 9.3 percent and 7.2 percent respectively.
Pharmaceutical sales are predicted to grow from US$ 4.7 billion in 2016 to
US$ 5.7 billion in 2018 and US$ 7 billion in 2020.

Medical devices are estimated to grow from US$ 981 million in 2016 to US$ 1.4
billion in 2020, while private healthcare spending is predicted to grow from
US$ 6.6 billion in 2016 to US$ 8.7 billion in 2020.

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c. Expenditure
Changes in living standards and an ageing population have led to the rapid growth
in health expenditure. According to KPMG, expenditure is estimated to increase
from US$ 16.1 billion in 2017 to US$ 17.2 billion in 2018, and close to US$ 20
billion in 2020. It is expected that healthcare spending will reach US$23 billion
in 2022 at a compound annual growth rate (CAGR) of 10.7 percent.

Since 2012, public healthcare expenditure overtook the private healthcare

expenditure, largely due to the government’s social health insurance programs.
From 2016 to 2021, public healthcare expenditure is predicted to grow at a CAGR
of 9.5 percent, while private healthcare expenditure will grow close to 7.5 percent
in the same period.

Public healthcare expenditure accounts for more than half of the total expenditure
and by 2021, its share is estimated to reach 58.1 percent.

2. Hospitals system in Vietnam

a. General situation
Hospitals are a significant component of health service delivery. Achieving
universal health coverage (UHC) is impossible without clearly identifying the
role of hospitals and optimizing their performance. Nevertheless, countries
continue to struggle to improve hospital planning and management. Facility-level
challenges, such as weak management, long waiting periods, poor quality and
safety, and low patient satisfaction impair hospital performance. At the level of
the health system, challenges such as limited integration with primary health care,
cost escalation, weak regulation and inadequate monitoring undermine hospitals’
contributions to population health outcomes.

Viet Nam's hospital system consists of a public-private mix, in which the public
hospitals play substantial roles in providing health care services to the people.

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Overall, public hospitals are key drivers of efficiency and healthcare cost
escalation.

Hospital autonomy reforms in Viet Nam were initiated in the 1990s, with a new
policy allowing hospitals to charge user fees. It is well recognized that public
hospitals in Viet Nam need to strengthen its finance and management and be
effectively governed at the system level to drive improvement in quality and
efficiency. In parallel, the government also plans to intensify its investment in
grassroots health care system (district and commune level) to reduce
overcrowding in central and tertiary hospitals and promote overall service
integration across the system and care providers.

b. Hospital system
Vietnam has a decentralized system where provinces, districts and communes are
given autonomy to implement their own healthcare policies. The organizational
structure of the hospital or healthcare system in Vietnam is divided into four
groups:
• Central level – The Ministry of Health (MoH) is responsible for the
healthcare sector for the government and manages several institutions
including hospitals, research institutions, and universities. Other
ministries also run their own network of hospitals.
• Central-affiliated province/city – At a province or city level, there are
several hospitals and medical centers. In addition, they also have medical
colleges offering medicine, nursing, and pharmacy programs.
• District – In the district-level, district health center mostly offer medical
and preventive services.
• Commune – Commune health stations focus on primary healthcare
services at a commune-level.

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c. Infrastructure
The hospital network in Vietnam is fairly extensive. In 2016, there were 1,346
hospitals in Vietnam, which included 1,161 public hospitals and 185 private
hospitals (private hospitals are mostly located in urban areas). The government
health departments in the provinces and cities manage close to 80 percent of the
public hospitals, while the Ministry of Health and Other ministries/State-owned
firms manage the rest. Up to 2020, there is a total of 1,531 hospitals, 86 percent
of which are public and 14 percent are private mostly concentrated in major urban
areas such as Ho Chi Minh City, Hanoi, and Da Nang. The 1,318 public hospitals

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are administered in a decentralized system, classified at the central, provincial,
and district or commune level.

The total number of hospital beds increased from 209,485 in 2011 to 254,885 in
2016. The public sector accounted for 240,700 beds, while the private sector
accounted for the remaining 14,185 beds. The government aims to increase the
share of private hospital beds to 20 percent of the total beds by 2020, through
public-private partnerships.

Both, the number of private hospitals and beds, grew at a faster CAGR than public
hospitals. Between 2011 and 2016, the number of public and private hospital beds
grew at a CAGR of 3.4 percent and 17.7 percent respectively, while the number
of public and private hospitals grew at a CAGR of 0.8 percent and 6.8 percent
respectively.

d. Legal forms of operation

To meet the growing demand for healthcare services, foreign investments in the
sector especially through M&As has witnessed rapid growth in Vietnam.
Investors can invest in healthcare establishments, pharmaceuticals, medical
devices, and medical training units. Foreign investments up to 100 percent are
allowed in each of these sectors with certain conditions on the capital requirement.
• Healthcare treatment
This form of business includes hospital, medical, and dental services.
Homecare, nursing, and emergency evacuation services are subject to
approval on a case-by-case basis. Capital investment for a hospital is
US$ 20 million, while a polyclinic and specialized clinic would require an
investment of US$ 2 million and US$ 200,000 respectively.
• Pharmaceutical
Except for distribution, all activities such as manufacturing, trading,
storage, and testing are allowed in this sector.

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 • Medical Devices
Activities such as manufacturing, trading, and distribution are allowed in
the medical device sector.
• Medical training
Investors can set up a university or a vocational training unit for medical training
and educational purposes. Capital requirement for a university is US$ 6,500 per
student and a minimum of US$ 13 million. For vocational training and short-term
training, the capital requirements are US$ 2,600 and US$ 900 per student
respectively.

Investment opportunities also exist in public-private partnership (PPP) projects.

Vietnamese government on a central and provincial level have deployed
numerous investment models to meet the growing demand for healthcare services
and attract capital in the form of PPP in areas such as construction and
management of infrastructure facilities, medical equipment, and training.

3. Opportunity for Foreign investment

Vietnam is currently undergoing economic and demographic transformations that
provide great potential for its healthcare industry. In 2019, Vietnam’s healthcare
expenditure was approximately US$17 billion, equivalent to 6.6 percent of its GDP
according to Fitch Solutions. The firm also expects that healthcare spending will reach
US$23 billion in 2022 at a compound annual growth rate (CAGR) of 10.7 percent.

The COVID-19 outbreak certainly dampened economic activity in Vietnam, but it is

unlikely to reverse ongoing socioeconomic changes. Rather, health stands firmly as the
top priority and concern for both the Vietnamese people and the government.

We provide an overview of the opportunities for the healthcare industry in light of the
current developments in Vietnam and survey three key sub-sectors: medical equipment
and devices, pharmaceuticals, and digital healthcare.

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a. Changes in society create opportunities and challenges
Fast-growing middle class and aging population
The healthcare sector in Vietnam has a lot of potential due to the demographic
and socioeconomic changes currently underway. Vietnam’s rapid economic
development has boosted demand for higher quality and specialized healthcare
services, especially among the growing middle class.

The COVID-19 outbreak has proven that health is, and will certainly continue to
be, a priority for most Vietnamese. Moreover, growing concerns over food safety,
pollution, and unsafe living and working conditions have also made people more
willing to spend on medicines and healthcare.

According to the United Nations Population Fund (UNFPA), the country has
entered the “aging phase” since 2011. It is expected that by 2038, 20 percent of
Vietnamese people will be over 60 years old. As more women join the workforce,
a declining fertility rate will accelerate the aging of the population, straining the
social welfare system.

Expansion of health insurance and hospital system

Social health insurance is the main public financing method for healthcare in
Vietnam. With 87 percent of the population currently covered under this scheme
according to the World Health Organization (WHO), the government continues
to work towards achieving universal healthcare coverage.

Under a new document issued by the Ministry of Health (MoH), provincial

departments of health and Vietnam Social Security branches are asked to
encourage participation in and implementation of health insurance across the
country. The government has also recently set new social insurance, employment

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insurance, and health insurance contribution rates that apply to both national and
expatriate workers and employers.

To prevent overcrowding and ensure that both urban and local patients can access
medical services, the government continues to finance the construction of new
hospitals. Since public hospitals rely on a government budget, the country will
need to mobilize various sources of investment to upgrade its medical facilities.
Further, the healthcare system also suffers from a shortage of qualified physicians,
especially those in specialized fields.

Meanwhile, private hospitals and clinics have sprung up in major cities to cater
to the middle-class segment.

To help it shoulder the burden of rising healthcare costs, the government is

increasingly looking at investment from the private sector and international firms.
These changes mean that there will be more business opportunities in the
healthcare sector in Vietnam in the upcoming years.

Medical equipment and devices

On February 28, 2020, the government enacted Resolution No.20/NQ-CP to
license the export of fabric face masks-in response to high demand from different
markets such as the US, the EU, and Canada. This has helped local businesses,
namely textile and garment workers who reported rising orders after the
enactment of the resolution. Face masks are not the only products that have been
sought after during the pandemic: ventilators, gloves, gowns, and testing kits
from Vietnam have also been accepted around the world.

Although the MoH has predicted that the country’s medical equipment market
will grow at a rate of 18 to 20 percent from 2016 to 2020, most medical equipment,
however, needs to be imported. There are very few local manufacturers of

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sophisticated and specialized devices that meet international standards. In fact,
more than 90 percent of medical equipment is imported from countries such as
Japan, Germany, the US, China, and Singapore, while domestic enterprises
account for only 10 percent of market share.

In public hospitals across the country, there is a lack of sufficient equipment for
surgery and intensive care units. Furthermore, the existing equipment is outdated
and needs to be replaced. As such, because local production cannot meet demand,
the Vietnamese government encourages the import of medical equipment by
setting low import duties and no quota restrictions.

Medical devices producers can look forward to opportunities created by trade

agreements such as the European Union Vietnam Free Trade Agreement
(EVFTA). Improvements in regulatory standards, exchange of information on
customs requirements, and the simplification of customs procedures are a few of
the anticipated benefits from the implementation of the EVFTA.

Pharmaceuticals
Although the government aims to increase the share of locally produced
pharmaceuticals to 80 percent, an average of 55 percent of medicines in Vietnam
are imported every year. One of the reasons for Vietnam’s reliance on imports is
that most domestic companies lack research and development capabilities, and
do not meet the European Union Good Manufacturing Practice (EU-GMP) or
Pharmaceutical Inspection Co-operation Scheme Good Manufacturing Practice
(PIC/S-GMP) standards required to manufacture high-quality generic drugs.

Further, Vietnam imports more than 90 percent of drug inputs, half of which are
from China. With the closure of many Chinese factories due to environmental
concerns, the price of raw materials has surged, decreasing the profit margins of
Vietnamese companies.

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The implementation of the EVFTA will remove tariffs for pharmaceutical
products from the EU, and allow foreign companies to import and sell
pharmaceuticals to Vietnamese distributors and wholesalers.

Currently, there are only two multinational companies, Sanofi-Aventis (France)

and AstraZeneca (Britain-Sweden), that have medicine import licenses. Although
the presence of more foreign pharmaceutical companies will improve the supply
of high-quality medicines, domestic companies may be negatively affected by the
increased foreign competition.

Seventy percent of drugs in Vietnam are sold through hospitals, while the
remaining 30 percent comes from pharmacies. The growing number of private
hospitals and a greater concern for health among the public has led to an
increasing demand for drugs.

Buoyed by increasing demand for medicine amid the COVID-19 pandemic,

pharmaceutical companies registered positive results in the first quarter of 2020.
The country’s largest pharmaceutical firm, DHG Pharmaceutical Joint Stock
Company had a US$5 million profit, which represented a 31 percent year-on-year
increase.

Other major firms also saw their profits going up from the same period last year.
While it’s clear that the pandemic benefitted the pharmaceutical industry in the
short term, firms may have to consider importing raw materials from other
regions as China looks to bring the pandemic under control within its borders.

Hospital system
The hospital network in Vietnam is fairly extensive. There is a total of 1,531
hospitals, 86 percent of which are public and 14 percent are private mostly

15
concentrated in major urban areas such as Ho Chi Minh City, Hanoi, and Da Nang.
The 1,318 public hospitals are administered in a decentralized system, classified
at the central, provincial, and district or commune level.

Though the system is well-established, Vietnamese hospitals are facing a number

of important challenges. Most public hospitals in the country were built more
than two decades ago and need to be upgraded.

Hospitals also face an overcrowding issue. The beds-to-inhabitants ratio, or bed

occupancy rate in Vietnam far exceeds the threshold occupancy rate of 80 percent
recommended by the World Health Organization (WHO).

Adding to the problem is the inequality of care: patients would rather get treated
in overcrowded national level hospitals than provincial or district level ones due
to the availability of higher quality medical equipment and staff in the former.
Meanwhile, doctors and nurses have to tend to a large number of patients,
working long hours under stressful conditions with relatively low wages.

Thus, the Vietnamese hospital system needs an upgrade to its facilities,

equipment, and services. The current gaps create opportunities for foreign

16
investment in the construction and management of infrastructure facilities,
medical equipment, and vocational training.

Digital healthcare
In light of the current challenges faced by public hospitals in Vietnam and the
COVID-19 pandemic, the digital healthcare sector holds a lot of promise.

On April 18, 2020, the MoH in coordination with the Ministry of Information and
Communications (MIC) launched a telemedicine program. Developed by Viettel
Group, the country’s largest telecommunications service company, the program
provides remote healthcare services by connecting patients and doctors through
a virtual platform. With 70 percent of the Vietnamese population living in a rural
or remote area, telehealth will help improve access to quality healthcare while
reducing its costs.

The private sector was also quick to take advantage of the shift towards
technology-enabled healthcare services. Many start-ups already present in
Vietnam before the COVID-19 outbreak have expanded and optimized their
operations.

However, the burgeoning health tech sector is still in its infancy, attracting
significantly less investment than other related sectors such as payments or e-
commerce. The sector also largely depends on the development of Industry 4.0
technologies such as 5G networks, artificial intelligence (AI), and the internet of
things (IoT).

To help the health tech sector sustain the momentum post-pandemic, companies
not only have to appeal to investors and consumers but they also have to be
integrated with Vietnam’s national health framework. The government will have

17
to play a bigger role in encouraging collaboration between industry players and
other stakeholders, provide incentives, and formulate clear policies.

On June 22, 2020, the MoH approved a five-year project on remote medical
examination and treatment involving 24 hospitals. Apps and medical services will
be developed to manage files and knowledge systems, as well as helping patients
find medical information, make their appointments, and consult doctors.

These measures will accelerate the digitalization across Vietnam’s hospital

network, which is currently fragmented and mainly implemented in central level
public hospitals and private hospitals in major cities.

The private sector was also quick to take advantage of the shift towards
technology-enabled healthcare services. According to a YCP Solidiance report,
private hospitals have relatively advanced health management systems compared
to their public counterparts for several reasons.

Their higher-income patients are more willing to pay for modern and high-quality
healthcare services. Seeing digitalization as a competitive advantage, private
hospitals have an incentive to invest and upgrade in their digital infrastructure.
They also commonly use products and services from leading information and
technology companies such as Oracle or SAP and have standardized systems in
place across individual hospital branches. Therefore, the implementation of
digital tools at private hospitals is less complicated compared with public
hospitals.

A number of important barriers still hinder digital adoption in Vietnamese

hospitals, both public and private. First, healthcare professionals and patients are
reluctant to use digital-based systems due to unfamiliarity with these tools and
technological constraints at home.

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Second, unclear and complicated administrative processes slow digital adoption.
Digital signature for national health insurance reimbursement is a notable
example: doctors and nurses who are responsible for their registration need the
approval of two different departments, the Electronic Health Administration
under the MoH and the Vietnam National Security.

Thirdly, the output of data is not standardized across hospitals, and data security
remains a concern for healthcare providers, weakening inter-hospital integration.

The start-up sector in Vietnam, albeit small in size compared to that of other
Southeast Asian countries such as Singapore or Indonesia, is also actively
contributing to the digitalization of healthcare.

Many start-ups already present in Vietnam before the COVID-19 outbreak have
expanded and optimized their operations. Some provide booking services that
allow patients to schedule appointments with doctors without visiting hospitals,
thereby reducing long queues and minimizing infection risks. Patients are able to
discuss their health concerns and obtain answers from healthcare professionals,
which is difficult in public hospitals where consultation times are limited.

Though these apps and services contribute to healthier lifestyles, their fees are
considerably higher than those at public hospitals. Only a minority of middle to
high-income urbanites are willing to pay for more convenience and flexibility.
Start-ups also struggle to attract new customers due to limited brand awareness
and a lack of engagement with well-known healthcare professionals.

Further, the burgeoning health tech sector is still in its infancy, attracting
significantly less investment than other related sectors such as payments or e-
commerce. To help the health tech sector sustain the momentum post-pandemic,

19
companies not only have to appeal to investors and consumers but they also have
to be integrated with Vietnam’s national health framework.

Like pharmaceuticals and medical devices, health tech start-ups operate in a

highly regulated sector where there are still many uncertainties in the regulatory
landscape. The government will have to play a bigger role in encouraging
collaboration between industry players and other stakeholders, provide incentives,
and formulate clear policies.

Thus, though there is still a lot of room for the health tech sector to grow, the
digital transformation of healthcare in Vietnam is already well underway.

b. What do investors need to know:

Market access
Though the health sector in Vietnam is very attractive, policy barriers and a weak
legal framework continue to make it challenging for inexperienced foreign
investors. The industry is strictly regulated, yet investment procedures are still
not very clear and specific.

The Law on Pharmacy sets out the legal framework for the registration, sale, and
distribution of pharmaceuticals. Circular No. 32/2018/TT-BYT specifies the
procedure regarding the registration of pharmaceutical products. Investors have
expressed concerns over the ill-defined roles and responsibilities of foreign and
domestic companies, and the cumbersome administrative process, which can
delay access to the Vietnamese market.

Similarly, medical devices are subject to requirements set by the MoH. Foreign
suppliers often work through local distributors or agents, as only companies with
a legal business entity in Vietnam and an import license can distribute medical
equipment. Imported devices, unlike those manufactured in Vietnam, are not

20
required to be registered and only need a Certificate of Free Sale from the
Embassy of Vietnam in the originating country.

In the digital healthcare sector, administrative complexity and an unintegrated

system create a challenging environment for existing and prospective industry
players. Furthermore, the future of digital health hinges on the availability of
enabling technologies and infrastructures, such as high-speed networks, big data,
Internet of Things (IoT), and cloud computing.

Mergers and acquisitions

Keen interest from private and foreign investors has benefited Vietnam’s
healthcare industry. Private hospitals and healthcare providers such as Tam Tri
Medical and Vietnam Integrated Medical Services received major investments
from private equity firms.

Many major pharmaceutical companies such as Abbott (USA), Taisho

Pharmaceutical Co., Ltd. (Japan), and Sanofi (France) have been in Vietnam for
several years, and some even decades. Not only have their products become
available across the country, but they have also invested new plants and research
and development (R&D) facilities.

Over recent years, there has been a growing number of mergers and acquisitions
(M&A), with many foreign investors purchasing large amounts of shares in
Vietnamese companies. These moves ease market access for foreign firms and
help them avoid restrictions on foreign direct investment. For domestic
companies, the integration creates more R&D opportunities and allows for the
sharing of expertise and best governance practices, as well as access to foreign
markets.

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Amended Law on Enterprise and Law on Investment
The passing of the new Law on Investment (no. 51/2020/QH14) effective on
January 1st, 2021, incentivizes investment in five key sectors including
healthcare. Projects in these sectors will benefit from preferred enterprise income
tax, exemption or reduction of land lease fee, and credit support.

Previously, an ineffective private-public partnership (PPP) agreement made

investment attraction difficult. However, the new law puts forth changes that
eases risks for investors. It offers guarantees to PPP projects, including access to
land, provision of civil service, right to the mortgage of property, revenue risk
sharing, and foreign currency balance-ensuring scheme among others. The law
also specifies the total investment capital requirement for a PPP project
depending on its type and location. A project’s value must be at least around
US$8.6 million, but the threshold of healthcare projects is half that.

The law also requires projects to apply to an open bidding process for the
selection of preferred investors except for those in priority areas. Foreign
investors will be able to compete in good faith to win the bids of major projects.

The new law also lowers the foreign investor threshold from 51 percent to 50
percent. Foreign investors holding a majority equity stake in a company are
treated as “foreign investors” for purposes of licensing and investment activities.
This determines the conditions and procedures of establishing subsidiaries or
acquiring shares or other equity interests, which are different and more
cumbersome than for those considered “domestic investors”.

Regarding M&As, the law removes the need for approval if the transaction does
not increase the foreign investor’s ownership ratio in the target company. The
M&A approval requires a number of documents to be notarized and legalized by

22
consular authorities in the foreign investor’s home jurisdiction, thus taking up a
significant amount of time in the pre-completion process.

Overall, these measures confirm the Vietnamese government’s commitment

towards creating a favorable business environment, especially to meet demands
in the growing healthcare industry.

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 II. Orthopaedics
1. General information
Orthopaedics is the medical specialty that focuses on injuries and diseases of your
body’s musculoskeletal system, which is made up of bones, muscles, joints and
ligaments. Aging, trauma, poor posture, high-impact sports or traffic accident can all
cause injuries to these areas of the body.

2. Injuries in Vietnam
a. The situation of injuries in Vietnam
General situation
Accident injury is a major cause of great loss of life and property to society.
According to estimates of the World Health Organization (WHO), every year
more than 5 million deaths, tens of millions of people are injured by injury
accidents worldwide. Accident and injury are the leading cause of the burden of
illness and death, especially among the young and working age population. Each
year, more than 1.2 million cases die from traffic accidents, over 600,000 children
under 15 die from drowning. More than two-thirds of those cases happen in low-
and middle-income countries.

In Vietnam, according to statistics of the Ministry of Health, it is estimated that

every day there are 3,600 cases of injuries, 90 deaths. In which, traffic accident
and drowning are the leading causes of death. Drowning is the biggest cause of
death among children under the age of 19, killing more than 3,000 children each
year.

According to Pham Viet Cuong (University of Public Health), road traffic

accidents are the leading cause of human death and injury in Vietnam. Followed
by drowning, falls, self-injury, violence, accident caused by exposure to
mechanical forces, undesirable effects of medical services, fire, heat and hot

24
items, road traffic accidents, poisoning. It is noteworthy that in the age group 15-
19, the number of suicides appeared and tended to increase.

Hanoi examines and gives emergency care for more than 7,700 cases during
the holidays
Hanoi Department of Health said that during the five public holidays (April 30 to
May 1, 2019), hospitals in the city had emergency examination of 7,702 cases.
Among the cases of accident examination, the number of traffic accident
examinations was 464, daily life accident was 553, labor accident was 43 cases.

Children injury
At present, child injury accidents are on an increasing trend and are a public
health issue of concern not only in Vietnam but also in developing countries.

Globally, more than 900,000 children and adolescents under 18 die from injury
each year, according to the World Health Organization, of which 90% are
unintentional injuries. 95% of all child injury deaths occur in low-income and
middle-income countries. In addition to these deaths, tens of millions of children
require care in health facilities and many have lifelong disabilities.

In Vietnam, statistics from the Department of Environmental Management show

that each year, on average, more than 370,000 children are injured, of which the
15-19 age group accounts for the highest proportion, accounting for 43%,
followed by the age group 5 to 5. 14 accounts for 36.9%, the lowest is the age
group 0-4 accounting for 19.5%. The number of children dying from accidents
and injuries is 6,600 cases a year, accounting for 35.5% of the total number of
children dying in the country from all causes. For every 100,000 children, 24
children die from an accidental injury or the equivalent of 18 children die from
an injury every day. Boys tend to have more frequent and serious injuries than
girls. The death rate in men is 3 times higher than that of women.

25
Among the causes of death from child injury accidents, drowning is the leading
cause with 3,500 children and adolescents aged 0-19 years dying each year
equivalent to about 10 deaths each. day. Among age groups, children aged 0-4
account for the highest rate of drowning mortality with about 36%, age group 15-
19 accounts for only about 16%; from 5-9 years old accounting for 25%, the
group 10-14 years old accounts for nearly the same rate as the 5-9 age group
(26%).

Depending on the age, children may experience different types / causes of injuries.
- For newborn babies: Causes of accidents and injuries that account for the
highest proportion are drowning, falls, suffocation, burns, traffic accidents
and poisoning.
- For children under 1 year old: Common causes of injuries are drowning,
falls, burns, traffic accidents, poisoning, asphyxiation.
- For children 1-4 years old: drowning is still the leading cause, followed
by burns, other common causes such as falls, traffic accidents, animal bites,
poisoning are also possible but the rate is not. high.
- For children 5-9 years old: Drowning remains the leading cause, with
some other common causes such as traffic accidents, injuries from sharp
objects and animal attacks. Less common causes are asphyxiation, falls,
poisoning, and lightning strikes.
- For 10-14 years old: Drowning and traffic accidents are the 2 leading
causes. Other causes have a lower incidence of fighting, animal attack,
suicide.
- For children 15-19 years old: Traffic accidents emerged as the leading
cause. Other causes include suicide, fighting, and drowning.

b. Injuries by physical activities

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Physical activity is an important part of maintaining overall health. Leading a
stressful work life usually only leaves us with weekends to engage in physical
activities.
However, trying to compensate for our sedentary lifestyle during week days may
take a toll on sports injuries.
At the Department of Trauma and Orthopedic, Bac Giang General Hospital, each
month, there are 40-50 patients that are hospitalized, having surgery and
treatment due to injuries while playing football, volleyball, tennis, badminton.

Which parts of the body are affected?

For “normal” sports activities such as running, biking, playing tennis or squash,
group ball games, golf and exercising in the gym, the most commonly affected
areas are the feet, ankles, knees, legs, lower back, elbows and shoulder.

Most common sports injuries

Sprains and strains are the two most common sports injuries. A sprain refers to
an overstretching or tear in one of the ligaments. Ligaments are short bands made
of connective tissue that connects two bones or cartilages or holds together a joint.

Strains are also called “pulled muscles”. If you overuse or overstretch a muscle,
you can cause tears in the muscle fibres or muscle tendons.

The more severe injuries mainly include broken legs, arms, knees, and shoulders.
In particular, the trauma with the ligament of the knee fractured is the highest
proportion (about 50%) of the injuries. The injured are usually adolescents, young
people & the middle-aged.

Treatment
According to Doctor Nguyen Van Chuan, Head of the Department of Orthopedic
Trauma, for severe surgical injuries such as cross-knee ligament rupture,

27
shoulder-rotated apex, treatment costs are up to 60 million VND/case. Most post-
operative injuries require 3-9 months of treatment, or even longer, to stabilize,
which greatly affects the quality of life of patients and their families.

c. Injuries by traffic accidents

According to the National Traffic Safety Committee, traffic accidents are mostly
caused by road traffic accidents.

The majority of people in traffic accidents are from 15-59 years old, in working
age. This shows that traffic accidents cause serious damage to people and
property, increasing the burden on families and society.

The most common injuries caused by traffic accidents are traumatic brain injuries,
followed by spinal injuries, broken limbs, closed or open chest injuries, software
injuries ... People with a serious traffic accident die or become disabled for life.

Statistics on traffic accidents in the previous years

According to the Ministry of Public Security, from 2009 to May 2019, there were
326,299 road traffic accidents nationwide, killing 97,721 people and injuring
329,756 people. Thus, in the past 10 years, on average, nearly 10,000 people per
year die from traffic accidents.

In 2019, 17,626 traffic accidents occurred nationwide, including 9,229 traffic

accidents from less serious to over and 8,397 traffic crashes, killing 7,624 people,
injuring 13,624 people and 8,528 people were slightly injured. On average,
Vietnam saw 48 traffic accidents each day which claimed 21 lives and injured 37
people in 2019.The number of traffic accidents this year decreased by 5.1%
compared to the previous year (the number of traffic accidents from less serious
to over decreased by 4%; the number of traffic crashes decreased by 6.1%). In

28
 which, the number of deaths decreased by 7.1%; the injured decreased by 6.4%
and the slightly injured decreased by 8.2%.

Traffic accidents in 2020

Regarding traffic accidents in the first 5 months of 2020 (from December 15,
2019 to May 14, 2020), there were 5,508 traffic accidents nationwide, killing
2,667 people, injuring 3,965 people. Compared to the first 5 months of 2019, the
number of cases has decreased by 18.75% (equivalent to 1,271 cases), the number
of deaths has decreased by 14.74% (by 461 people), the number of injured people
has decreased by 1,289 people (equivalent to 24.53%).

During holidays or Tet, high traffic volume of people traveling makes vehicles
easy to collide and cause accidents. In addition, the habit of drinking a lot of wine
and beer when meeting each other on Tet occasion is also the main cause of the
accidents.
• A report from the committee said that between January 23 and January
27, 2020, the country saw 138 traffic accidents, killing 102 people and
injuring 108 others.
• On January 27 which was the third day of the Tet hospital, there were
33 accidents, killing 19 people and injuring 43 others. These numbers
showed an increase of 3.1%, 18.7%, and 7.5%, respectively compared
to last year’s number.
• No traffic congestion was reported in Hanoi and Ho Chi Minh City on
January 27. During the day, traffic police dealt with 2,243 violations,
seizing 19 cars, 315 motorbikes and revoking 319 driving licenses.

3. Current situation of Orthopedics in Vietnam

Traffic accidents, occupational accidents and other daily life accidents are becoming a
burden on the whole society, putting great pressure on hospitals that specialize in
Trauma and Orthopedics, causing hospitals to constantly suffer from excessive stress.

29
In fact, after accidents and injuries, the intervention and treatment are delayed because
the number of patients is too crowded, in certain times the human resources and
equipment, facilities of the hospital are not enough to satisfy.

The patient's waiting for surgery is in danger of leading to serious complications. To

limit the risk for the victim, hospitals are focusing on surgical intervention solutions
and on treatment in the postoperative period.

For surgical intervention, the doctors at major hospitals in Vietnam are very good with
ability to do difficult techniques such as ligament shaping, hip replacement. However,
provincial hospitals still have many problems. Physicians need more professional
training; hospital facilities & equipment need modernization.

Besides, with the characteristics of the cases of accidents and injuries, care and
functional rehabilitation in the postoperative period plays such an important part,
accounting for 50% of the success to give patients the opportunity to reintegrate into
the community. If this stage does not have adequate rehabilitation practice facilities, the
success of the surgery will not be fully promoted.

The above stages are being left open because the capacity of hospitals is not specialized
enough to coordinate.

Apart from the field of rehabilitation, sports medicine in the field of orthopedic trauma
in Vietnam is lacking and weak. Vietnam's sports in recent years have achieved
successes, affirming its leading position in the region. However, Vietnamese players
and athletes, when faced with serious injuries that require intervention, have to go
abroad for treatment.

4. Famous Orthopaedic hospital in Hanoi – Vietnam

Three famous hospital for orthopaedic in Hanoi:

30
• Vietduc University Hospital
Add: 40 Trang Thi Street - Hanoi – Vietnam
Viet Duc Hospital is considered the cradle of the surgery (surgery) industry in Vietnam.
The hospital is trusted by patients, especially patients needing early intervention. On
the strength of the hospital, it is impossible not to mention Orthopedic Trauma, the
Institute of Orthopedic Trauma is divided into smaller departments:
- Department of Trauma and Orthopedics I, II, III
- Department of Spinal Surgery
- Department of Bone Examination and Outpatient Treatment
- Department of Rehabilitation
- Faculty of Facial Surgery and Plastic Shaping

• Hospital of Trauma Orthopaedics – 108 Military Central Hospital

Add: No. 1 Tran Hung Dao street, Hai Ba Trung District, Hanoi
The 108 Hospital Trauma and Orthopedic Institute has the function of emergency,
recovery and treatment of injuries, wounds, and diseases of the motor organs, carefully
applying micro-surgery to treat complex lesions. trash in chi.
The Institute also divided into smaller departments to facilitate monitoring and
treatment for patients:
- Department of Trauma - Orthopedics
- Hand Surgery Department - Micro Surgery
- Department of Joint Surgery
- Department of Chiropractic Trauma

• Hanoi French Hospital

Add: 01 Phuong Mai Street, Dong Da District, Hanoi, Vietnam
Viet Phap Hospital is a private hospital with international standards. The hospital has a
team of good doctors, both Vietnamese doctors and doctors from England, France ...
Patients can be assured of the quality of the service as well as the effectiveness of

31
treatment, but the cost of medical examination and treatment is quite high. Patients
should also inquire before making a decision.

The Department of Trauma-Orthopedics at Viet Phap Hospital is a specialist in the

treatment of accidental injuries or acute and chronic diseases of the musculoskeletal
system.
Source: bookingcare.vn

5. Orthopeadic Association in Vietnam

The activities of Orthopaedic Association in the past and the coming challenges:
Current Orthopaedic Associations in Vietnam
Vietnam Orthopaedic Association (VOA)
• Founded in 2000
• Annual meeting held in October, at a place by turns among 3 cities:
Hanoi (The north)- Hue (The central) – Hochiminh (The south)

Hochiminh Orthopaedic Association (HOA)

• Founded in 1994
• Members gathered from Hochiminh city and provinces of the South
• Annual meeting held in June at Hochiminh city

HOA and VOA relationships: 2 annual meetings

The HOA Annual meeting
• Speakers are experienced and working at big orthopaedic centers
• Average 60 reports each time
• Invited foreign speakers as well

The second meeting of HOA

• Related to the base of health service network

32
 • Founded by Director board of Hospital for Traumatology and
Orthopaedics (HTO)
• Place of meeting chosen among southern provinces by turns

Organizing the courses

• Trainee can come to TraumatoOrthopaedic Centers like HTO,
ChoRay hospital or Medical university hospital to improve their
speciality
• The available subjects: Arthroplasty, Microsurgery, Arthroscopy,
Spine surgery…
• The time of pratice can be 3-6-12 months

Besides their own activities, the HOA has also implemented requirements from VOA
zealously.

The VOA has officially become a membership of Asean Orthopaedic Association

(AOA) in 2005. The founder of this integration was Prof. Vo Van Thanh. The HOA has
directly involved in this relationship.

33
 III. Vinmec Times City Hospital
1. Vinmec Hospital in general:
Vinmec is a non-profit health care system developed by Vingroup - a leading private
economic group in Vietnam with the mission of "Caring with talent, ethics and
empathy".

Born in 2012, Vinmec currently has 7 general hospitals in operation and has developed
a development strategy with 10 hospitals across the country by 2020 (Hà Nội, TPHCM,
Đà Nẵng, Khánh Hòa, Hải Phòng, Quảng Ninh và Phú Quốc (Kiên Giang)). With
outstanding facilities; the team of leading experts and doctors and continuously
applying the world's latest treatment methods with perfect service quality, Vinmec has
now become the international standard healthcare address in Vietnam.

Vinmec hospitals operate according to international standards, in which Vinmec Times

City and Vinmec Central Park have been recognized as JCI (Joint Commission
International) - the world's most rigorous hospital safety certificate, creating prices.
difference in healthcare of international standards in Vietnam.

On the rise, Vinmec has been structured into 3 closely linked components:
- Hospital chain
- Research Institutes
- Training system (in collaboration with VinUni University).

Along with the development of the hospital chain, the Advanced Research Institutes in
the System have been established such as "Stem Cell Research Institute and Genetic
Technology", "Cancer Research Institute" ... It is also the standard model that the
world's leading health systems invest in building, creating a solid foundation for
Vinmec to continue to grow strongly and approach developed countries in the region to
the world.
More information of VinGroup JSC annual report: Click here

34
2. Vinmec’s Orthopaedics Department in Vimec Times City
a. Introduction
Injury - Orthopaedics is the specialist treatment of diseases of the musculoskeletal
system - the bones - joints of the extremities, pelvis and spine by surgery or
procedures.
Today the Trauma Specialist is called an Orthopaedics or Orthopaedic Surgery.

Vinmec Times City's Orthopaedic Surgery Specialist was established on January

7, 2012, right after the hospital's opening; It was also the day of the first bone
surgery in Vinmec Surgery Room.

Currently, Joint Reconstruction, Joint Endoscopy, Spine Surgery, Pediatric

Orthopaedic Surgery, Hand Surgery, Trauma Surgery are being performed on a
regular basis.

b. Specialization of Orthopaedic Surgery

The Specialization of Orthopaedic Surgery includes many subspecialties, as
follows:
1) Reconstructive Surgery: specializes in replacing severely damaged joints
with artificial joints. For example: hip joints, knee joints, shoulder joints,
ankle joints, finger joints…; Artificial spinal disc in the Neck or Lumbar
spine.
2) Arthroscopic Surgery: mainly reconstructs ligaments, tendons, sheaths,
meniscus, joint cartilage or cleans the damaged joint. The joints can be
laparoscopic surgery such as: knee joint, shoulder joint, hip joint, ankle joint,
elbow joint, wrist joint.
3) Spine Surgery: treatment of diseases such as disc herniation, disc
degeneration, spinal stenosis, spondylolisthesis, spinal defects, fracture
injuries, spinal dislocation, spinal tumors; Shaping the vertebral body ...

35
 4) Pediatric Orthopaedic Surgery: specializes in the treatment of
musculoskeletal diseases for children aged 16 years and under.
5) Hand Surgery: specializes in the treatment of hand diseases; Often,
microsurgery is used for surgery, such as reconnecting a broken finger.
6) Injuries: specializes in the treatment of fractures, dislocations or sprains,
soft tissue injuries of extremities, pelvis. This can be with less invasive
surgical techniques or super light castings.
7) Sports Medicine: physical health care and treatment of injuries related to
competition or sports.
8) Some new specializations may be added: Pedicure - Foot surgery;
Shoulder & Elbow Surgery

c. Achievements:
Outstanding professional achievements: The rate of very good functional
recovery after surgery reached over 98%; Postoperative infection rate is under
1%; There have not been any serious complications during the 7 years of
osteoarthritis at Vinmec Times City.

d. Facilities & Equipment:

Compared to major Vietnamese hospitals, Vinmec is much more modern in terms
of both infrastructure and medical equipment, although those hospitals have a
long history and are also updated with new equipment. In particular, an important
part in the treatment of orthopedic trauma is rehabilitation, this department at
Vinmec is fully invested with the latest equipment, which will surely help patients
recover as much as possible after surgery. technique.

Surgery room: international standard, with modern equipment such as:

orthopedic table, lightening screen (x-ray in surgery), surgical microscope ...

36
Full range of supporting departments: Diagnostic Imaging, Rehabilitation,
Emergency and Recovery create a closed treatment cycle and absolutely safe.
There is also a Stem Cell Center providing biological products for effective
treatment of musculoskeletal diseases room: only single room (per patient / 1
room) with bed-based monitoring system and services to serve the needs of
patients and relatives according to 5-star hotel standards.

e. Customer segment
Vinmec focuses on VIP customers with high income.

Each year, Vietnam has tens of thousands of people bringing billions of dollars
abroad for medical treatment. Even in the country, public hospitals have service
areas, some of which collect up to a few million VND /room/day but still overload.
This shows that the need to enjoy high quality medical services is huge and the
number of those who can afford to pay for VINMEC is not small.

As for the price for medical examination and treatment, VINMEC currently
defines their business strategy as "foreign quality - domestic price", equivalent to
the price level of other private hospitals in Hanoi while they can offer high quality
facilities, amenities and synchronous enjoyment from accommodation & eating
to medical examination, from treatment to doing medical check ...

Compared with hospitals with similar facilities in the region, the cost for medical
examination and treatment at VINMEC is only half the cost in Singapore,
equivalent to Guangzhou, China. That is only the comparison on the cost of
medical examination and treatment. If considering the overall cost for abroad
examination and treatment (including accommodation, traveling companions,
interpreters, air tickets…), VINMEC's costs are many times cheaper when they
can still provide equivalent quality, services, facilities & benefits.

37
General Tariff at Vinmec Hospital (Vinmec Times City Hospital)

38
 3. Orthopaedic doctors in the department of Orthopaedics:
The team of orthopaedic doctors includes: 1 Doctor, 3 Masters combined with domestic
and foreign experts who have been providing high quality and modern services to bring
the best satisfaction to all. disease and family.

Below are typical orthopaedic doctors of Vinmec Times City – Hanoi:

No Name Background Introduction

1 MD, Ph.D - 1978: Graduation in Medicine Nguyen Dac Nghia, Ph.D
Nguyen Dac from Pécs Medical University, graduated in medicine in 1978
Nghia Hungary from Pécs Medical School of
(Head of - 1991: Basic Degree in Surgery Hungary. During the war, he
Orthopaedics Diploma served in the army as Military
Unit) - 2001: Advanced Degree in Medical Officer for 6 years. Dr
Orthopaedic Surgery Diploma Nghia than registered for the
- 2005: Doctor of Philosophy in course of specialization in
Medicine Orthopaedics in 1987. Since
- 2009: Senior Consultant the year of 1989, he has become
Orthopaedic Surgeon until now
2 MD, MSc Vu - 2005: Graduated with Master’s Vu Song Linh, MD, MSc has 24
Song Linh Degree in Orthopaedics from years’ experience in
(Orthopedist) Hanoi Military Medical examination and treatment for
Academy knee and hip osteoarthropathy;
- Intensive studying in knee and as well as sport injuries.
hip arthroplasty in Korea, US, Currently, he is working at
Australia since 2003 Department of Orthopaedics,
- Annual advanced training in Vinmec Times City
arthroplasty and arthroscopy in International Hospital
US, Australia, France, Korea,
Malaysia, Singapore and
Thailand

39
 IV. Achievement of Foreign Investor in Vietnam Hospital
Vietnam’s Ministry of Health has recognised French-invested hospital France-Vietnam
(FV)’s contributions to improving the quality of the country’s healthcare.

France-Vietnam Hospital Services:

Medical Specialities Surgical Specialities Support Services
- Accident & Emergency - General & Thoracic - Imaging
- General Practice & Family Surgery - Nuclear Medicine
Medicine - Vascular Surgery & - Laboratory &
- Paediatrics & Neonatology Phlebology Blood Bank
- Internal Medicine - Bone & Joint Centre - Rehabilitation:
• Rheumatology - Urology & Andrology Physiotherapy,
• Nephrology - Obstetrics & Gynaecology Osteopathy &
• Pulmonology – Breast Care Clinic Speech Therapy
• Neurology - FV Lifestyle Clinic
• Endocrinology & (Cosmetics & Plastic Health Check-
Diabetology Surgery) Ups & Screenings
• Psychiatry - Otorhinolaryngology (ORL
- Health Check-up
- Dermatology or ENT)
Programmes
- FV Skin & Laser Clinic - Ophthalmology &
- Health Screening
- Cardiology Refractive Surgery
Programmes
- Gastroenterology & Hepatology - Maxillofacial & Dental
- Hy Vong Cancer Centre - Neurosurgery and
- Anaesthesiology & ICU Endovascular Neurosurgery
- Dietetics & Nutrition
- Clinical Psychology
- Pain Clinic
Source: fvhospital.com

Dr. Nguyen Trong Khoa, deputy chief of the ministry’s Medical Consultation and
Treatment Department, said over the past 10 years, FV had understood that Vietnamese
people needed a higher standard of healthcare and become the first hospital in Vietnam
to offer world-class healthcare services to local patients.

40
“Over the past 10 years, FV Hospital has been an excellent model for Vietnam’s
healthcare sector, and has been successful in attracting an ever-growing number of
patients, both local and foreign,” Khoa said during the hospital’s 10th anniversary
ceremony in Ho Chi Minh City last week.

MoH had selected the hospital to share its experiences on clinical quality governance
with other hospitals nationwide, he added.

FV had helped Vietnam save foreign currencies because many Vietnamese had chosen
it as their trusted healthcare provider and they underwent treatment at the hospital
instead of going abroad, where they would pay more for the same quality services, said
Nguyen Thanh Chin, a deputy from the Ho Chi Minh City People’s Council.

FV CEO Dr Jean-Marcel Guillon said his hospital was moving toward becoming a
leading hospital in South East Asia and in Asia. Every day, it cared for around 1,000
patients, or some 200,000 patients every year. A quarter of them were foreigners living
and working in Vietnam.

Officially opened in March 2003, FV Hospital is the leading international standard

hospital in Southeast Asia. The hospital is invested 100% foreign capital and founded
by a group of 10 French doctors. With a total of 220 beds, 1500 visits per day, FV
Hospital provides world-class healthcare of comprehensive medical, consulting,
treatment, and care services in more than 30 specialties including health and outpatient
clinics, emergency department, internal medicine center, surgery center, obstetrics
department, pediatrics ward and Hy Vong (Hope) cancer treatment center.

FV Hospital brings together a full-time team of doctors and dentists from France,
Belgium, the USA, Korea, and Vietnam. These professionals all have 15 years of
experience in key positions at famous international hospitals. One of the doctors in

41
charge of direct examination for customers when coming to FV Hospital is Dr. Le Khac
Quyen. He has worked in the Department of General and General Surgery, Tropical
Diseases Department at Cho Ray Hospital, currently Chief of Internal Medicine and
Family Medicine in FV Hospital.
Source: vir.com.vn (2013)

FV is selected as Hospital of the year for 2019 in Vietnam by the Global Health &
Travel Magazine

Source: fvhospital.com (2019)

The Global Health & Travel magazine (GHT), based in New York, USA, has just
announced FV will receive the title of Hospital of the Year 2019 in Vietnam. The award
is a testimony to FV’s success in providing quality services that satisfy patients and
provide a convenient and safe medical environment to take care of people.

The process of selection goes through many strict stages. The GHT established the
Medical Advisory Council, which consists of experts working in many health care roles
42
and fields in many different countries. Through market research, the members surveyed
and selected from each country are hospitals according to their criteria – private
hospitals which provide superior standard of healthcare, medical examinations and
treatment services which bring maximum satisfaction to patients.

Through many survey channels, more than 10,000 customers in 12 countries joined the
vote. The end result was then discussed by the Medical Advisory Council and an
agreement was made on which hospital best suits the title.

This is the second time FV Hospital has won the title of Hospital of the Year in Vietnam.
The award is a great motivation for FV to continue its efforts to improve the quality of
services for patients as part of its journey to become Asia’s leading healthcare provider.

43
 C. CONCLUSION
With its robust economic development and better living conditions, Vietnam witnessed
an increasing demand for higher quality products and services, among which is medical
care. To balance such demand, “supply” of numerous modernized hospitals and clinics
ranging from general, specialized, dental, etc. ones (collectively referred to as
“healthcare establishments”) have been spreading out over big economic cities like
Hanoi and Ho Chi Minh City, where accommodate majority of Vietnamese middle-
class. Understanding this need and also parallel with the overall policy to transform
Vietnam into a market economy, Vietnamese government has been encouraging foreign
investors to engage in this health-related sector.

ENCOURAGEMENT, BUT STILL CERTAIN REQUIREMENTS

The investment forms, scope of business, and other conditions applied to foreign
investors are subject to international treaties, commitments of which Vietnam is a
member. For instance, the State authorities generally apply the commitments made by
Vietnam when joining the World Trade Organization (WTO) according to which,
foreign investors may invest in hospital services (CPC 9311) or medical and dental
services (CPC 9312) through the establishment of 100% foreign-invested hospital, joint
venture with Vietnamese partners (no limitation on foreign ownership) or through
business cooperation contract, provided that the following conditions are satisfied:
minimum investment capital for a commercial presence in hospital services of at least
US$20 million for a hospital, US$2 million for a policlinic unit and US$200,000 for a
specialty unit.

Nowadays, Vietnam is facing a problem of over-crowding in public hospitals. Long

waiting time is a major dissatisfaction for patients. The “good financial patients” refer
to the private hospital (international) to reduce the waiting time, get better techniques
and famous doctors.

44
Vinmec is one of the top private hospital, operate according to international standards.
By collaborate with them is a good approach, only thing need to concern is the
government legal policy for medical/hospital business.

OVERALL, WE SEE MORE OPPORTUNITIES THAN CHALLENGES!

A bull market is likely to attract numerous comers creating a fierce competition even in
a dynamic and developing sector. However, considering the lack of high standard
healthcare establishments, the vast and growing demand with increasing expectations
of citizens, and also taking into account favorable treatments from Vietnamese
government, foreign investors can be confident in their investment decisions in the field.

45
REFERENCES

• Vietnam at a glance,
https://www.researchgate.net/publication/335426224_COMMUNITY-
BASED_REHABILITATION_PROGRAM_VIETNAM_DIRECTION_APPR
OACH_ACHIEVEMENTS_CONSTRAINTS_2_Report_of_development_of_
CBR_program_in_Vietnam
• Vietnam health service, https://www.vietnam-briefing.com/news/vietnam-
growing-demand-healthcare-services.html/
• Health industry, https://www.vietnam-briefing.com/news/why-investors-
should-be-optistimic-vietnams-healthcare-industry.html/
• Injury in Vietnam, https://vietnamnews.vn/life-style/449666/understanding-
sports-injuries-precautions-and-treatment.html
• Vinmec orthopaedic doctors, https://www.vinmec.com/en/danh-sach/bac-si/ha-
noi/chuyenkhoa-chan-thuong-chinh-hinh-cot-song
• Vinmec orthopaedic, https://www.vinmec.com/vi/tin-tuc/hoat-dong-benh-
vien/chan-thuong-chinh-hinh-viet-nam-benh-nhan-ngay-cang-tang-do-tai-nan-
giao-thong/
• Famous hospital for orthopaedic, https://bookingcare.vn/cam-nang/3-benh-
vien-co-the-manh-ve-chan-thuong-chinh-hinh-tai-ha-noi-p992.html
• Vingroup JSC annual report, https://vingroup.net/en/investor-relations/annual-
report
• Health care in vietnam – opportunity,
https://www.mazars.vn/Home/News/Latest-news/Healthcare-in-Vietnam-
Opportunities-to-seize

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