+49 30 648 35 164 service@chameleon-pharma.com
BRIC does not always make sense for Pharma! Other emerging markets might be best suitable for your company so it is definitely desirable to consider countries outside of the BRIC’s. Indonesia is the 4th largest country by population as it holds more than 250 million inhabitants, whereof 53% of the population is urban. The main island with the capital Jakarta is home to over 60% of Indonesia’s total population and the most populous Island in the world. Even though the current growth rate lies at 0.95%, the absolute number has increased significantly in the past decades and forecasts predict about 320 million citizens by 2060.
 "The Famous Bromo" Photo by: Riza Nugraha


“The Famous Bromo” Photo by: Riza Nugraha

  Many people living in crowded spaces and an aging population increase the risk of contagions in general and raise the numbers of age-related diseases and conditions within the population. Hence, parallel to the increasing and aging population, the pharma industry has also experienced a steady growth in the past decade and has reached an annual growth rate of 12.5%. At present, there are around 19,000 pharmacies and wholesalers in Indonesia. The health expenditure per capita lies at 107 USD and 75% of private expenditure on health make up for out-of-pocket health expenditure. Further, children up to 14 years old build almost one third of the whole population, presenting a prosperous market for companies with children’s products. These circumstances can be ideal for companies within the consumer health and pharma industry searching to expand their business internationally and looking for a market with prospects of success. Here is how you can get started.

As one of the few winners against the pandemic with modest financial resources, is the Vietnamese pharma market ready for international investments and colaborations?

The Covid-19 outbreaks and Vietnam’s remarkable performance in containing its spread have proven that health is, and will absolutely continue to be, a priority for most Vietnamese and as well as for the government. 

The societal shift that is creating opportunities for Vietnam’s Pharma and OTC  industry

Like most countries identified as emerging markets, Vietnam is undergoing drastic changes in terms of demographic, social, and economic aspects. Most recently, there are some significant shifts that make Vietnam more and more competent in becoming a top-of-the-list for international companies that are looking to expand their business in emerging markets. 

 

The first and most important factor in this equation is the fast-growing middle class in the country. Vietnam currently has the fastest-growing middle-class population in South-East Asia. This has significantly boosted the demand for high-quality and specialized healthcare services.

 

Subsequently, due to higher demand and affordability, the health insurance and hospital systems are expanding. Vietnam has become a coverage ratio leader within Asia and it has set a goal of covering 95% of the population with Universal Health Service by 2025. The Hospital network is also fairly extensive and the government continues to finance the construction of new hospitals. At the same time, it is also increasingly looking at investment from the private sector and international firms. 

 

As a result, the country recently signed the European Union Vietnam Free Trade Agreement (EUVFTA). The agreement will remove tariffs for pharmaceutical products from the EU and allow foreign companies to import and sell pharmaceuticals to Vietnamese distributors and wholesalers. 

 

Furthermore, there was an Amended Law on Enterprise and Law on Investment, effective January 2021, that 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.

Finally, investors should also pay attention to the development of Digital Healthcare in Vietnam. Recently, the Ministry of Health approved a five-year project on remote medical examination and treatment. 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. 

Overall, investors can be optimistic about the future of Vietnam’s Healthcare Industry. The societal changes, as well as the government’s regulatory activities in favor of the development of the sector, have made Vietnam one of the most attractive go-to emerging markets for companies and individual investors. 

Ho-Chi-Minh City