SEA Health Tech Investment Insights
Opportunities in both public and private healthcare, and to INSEAD
leverage Government investment incentives
Vietnamese government incentivizes healthcare and tech investments, provides preferential tax treatment
Government Outlook: rising healthcare costs and limited public budget has the government looking to private and international investments
for increasing healthcare quality and access. Further, they have set national goals in Resolution 20-NQ/TW in 5 key priority areas; public
health, healthcare network, healthcare access, pharma and medical equipment innovation, and human resources
Incentives: effective on January 1st, 2021, the amended Law on Investment (LOI) incentivizes investment in both healthcare and IT-related
industries through preferential income tax, real estate, and credit laws.
Smart health-tech investments will target national healthcare system and can benefit from free trade agreements
Universal Health Coverage (UHC): today, 87.7& of Vietnam's population benefits from state-provided healthcare. However, issues arise when
trying to balance supply of hospitals and physicians with demand.
Pharma & Medical Devices: Vietnam has been actively negotiating various trade agreements. The EU – Vietnamese Free Trade Agreement
(EVFTA), ratified in February 2020, will make it easier and cheaper for European manufacturers to sell into the Vietnamese
market. Foreign pharmaceuticals make up 55% of current consumption in Vietnam.
COVID: the recent pandemic has enabled Vietnam to stand as a strong example of healthcare response. From public infrastructure
investment, early regulatory responses, the release of a nation-wide contract tracing app, and more.
Sources: Vietnam Times, 2020; Deloitte, 2019; Our World in Data
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