New Delhi: Indian companies could look to tap Vietnam's burgeoning medical devices market which meets nearly 90% of the demand through imports, said EEPC India Chairman Mahesh Desai.
Japan, Germany, the US, China, and Singapore account for nearly 55% of the total medical devices imported by Vietnam. The domestic market comprising about 50 manufacturers contributes less than 10% to the market share.
"Vietnam appears among the top markets in India’s exports of medical devices and also acts as a springboard to the ASEAN countries," said Mr Desai in his introductory remarks at India-Vietnam Business Meet in the Medical Devices sector.
With demand for medical equipment growing, Vietnam’s medical device industry has emerged as one of the most promising sectors for foreign investors. The local government has offered tax incentives to promote the industry.
"Many Indian manufacturers of medical devices and pharmaceuticals have already entered and invested in the Vietnam market which is a very positive sign," said Mr Desai.
Dr. Madan Mohan Sethi, Consul General of India in Vietnam said that the South-East Asian country's medical device industry is one of the most promising sectors for foreign investment due to the country’s economic development and rising demand for adequate medical care and equipment.
"There is a lot of untapped potential in this area (medical devices sector). The COVID-19 crisis has given an opportunity to both sides to join hands and set up alternative global supply chains in different products that have been disrupted by the pandemic," said Dr. Sethi in his special address.
Mr Doan Quang Minh from the Department of Medical Equipment and Infrastructure, Ministry of Health, Vietnam said that the government has been providing a conducive policy environment to support local manufacturing and trading in the medical devices sector.
As Indian medical devices industry has been scaling up production at a faster pace it could become a global powerhouse in the sector over the next few years. From its current market size of US$ 11 billion, it is projected to reach US$ 50 billion by 2025.
Mr. T.S. Bhasin, Former Chairman, EEPC India & Chairman – Committee on Trade with ASEAN countries, said that COVID 19 pandemic has changed the outlook but it has also motivated the industry to explore and adopt alternative ways of collaborations for progress and development.
Given the rise in demand for medical equipment globally ranging from consumables & disposables to high-value engineering healthcare products and devices in the wake of Covid-19 pandemic, there is huge export potential for Indian suppliers.
Medical devices export from India is projected to grow at a CAGR of 30% to US$ 10 billion by 2025 from US$ 2.1 billion in 2020.
Vietnam and other ASEAN nations could be major export markets.
"It is predicted that the size of the Indian medical equipment market will reach US$ 11 billion by 2022. There is potential breakthrough for the economic and trade relations between Vietnam and India," said Mr. Hua Phu Doan, Vice Chairman of Ho Chi Minh City Medical Equipment Association of Vietnam.
India is the 4th largest market for medical devices in Asia and among the top 20 markets for medical devices in the world.