With the EU-Vietnam Free Trade Agreement (EVFTA) expected to come into effect in July 2020, German healthcare multinationals and SMEs operating in Medical technology, pharmaceuticals, and biotechnology are expressing a growing interest in the Vietnamese healthcare market. Presently, Germany is Vietnam’s most important trade partner within the EU and one of the top two exporters of Medical equipment for the country, just behind the US. The rising demand for healthcare has resulted in boosting Vietnam’s attractivity for foreign investors due to the combination of rapid economic growth, changing lifestyles and rising demand for health insurance.
A survey conducted by the Delegation of German Industry and Commerce in Vietnam (AHK Vietnam) in January showed that 60% of German Medical and healthcare businesses had plans to set up businesses in Vietnam. The survey was completed by 39 healthcare companies in Germany. The majority of German companies in the survey said they would consider using their brands and reputation as an effective way to enter the Vietnamese market or would co-operate with local businesses. However, 54% of surveyed business answered that they lacked knowledge relating to market entry, 37% perceived searching for local partners as challenging, while 43% experienced difficulty in contacting local authorities and 37% encountered issues with the language and cultural barriers.