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Korean medical device companies to expedite market entry into Vietnam

The recent removal of bidding rules by the Vietnamese government is expected to accelerate the entry of Korean medical device companies into the Vietnamese market, industry watchers said.

The Vietnamese Ministry of Health has eliminated government bidding regulations in response to complaints from the Korean government and the medical industry. These regulations were considered a major obstacle for Korean medical device companies seeking to enter the Vietnamese market.

Previously, Vietnam's Ministry of Health used a tiered system to rank countries from one to six and restricted imports based on these tiers when bidding for medical devices in the country's market.

Since Korea was categorized as a tier six country, which is the lowest category, its medical device exports faced significant restrictions in the Vietnamese market.

The removal of these bidding regulations means that Korean medical device companies can now compete in the Vietnamese market on equal footing without any significant hurdles.

Vietnam is a key country in the Asia-Pacific region for medical devices, as it depends on imports for over 90 percent of its medical device requirements.

According to the Korea Trade-Investment Promotion Agency (KOTRA), Vietnam's medical device market is expected to reach $2.57 billion (3.5 trillion won) by 2025.

Despite the limitations under a tier six country, Korean companies' medical device exports to Vietnam were valued at around $499 million in 2022, KOTRA data showed.

The decision by the Vietnamese Ministry of Health to abolish the bidding rules came just one month ahead of the K-Med Expo Vietnam, which will be held from June 15 to 17 in Ho Chi Minh City.

The convention is hosted by KOTRA, the Korea Medical Device Industry Association (KMDIA), and Korea International Exhibition Center (KINTEX).

The convention has attracted 140 companies so far.

Source: KBR

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