MARKETING PLAN FOR LAUNCHING ABBOTT HBSAG QUANTITATIVE AND ; HCV CORE AG ASSAYSIN VIETNAM .

TR

NG

IH CM

TP. HCM

UNIVERSITÉ LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY

SOLVAY BRUSSELS SCHOOL

MBAVB4

PH M M NH TU N

MARKETING PLAN FOR LAUNCHING
ABBOTT HBSAG QUANTITATIVE AND
HCV CORE AG ASSAYS IN VIETNAM

MASTER PROJECT
MASTER IN BUSINESS ADMINISTRATION

Tutor’s Name: PGS.TS LÊ NGUY N H U

Ho Chi Minh City
(2012)

Marketing plan for launching Abbott HBsAg quantitative and
HCV Core Ag assay in Vietnam

Final Project

Commitment
This marketing plan is created based on my knowledge from marketing subjects in the
Master Business Administration 2010-2011 course of Solvay Brussels School and HCM
city Open University. I commit that the contents of this plan are completed with my high
honesty. I will take responsibility for any mistakes or incorrect information given in this
marketing plan.

Pham Manh Tuan

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Marketing plan for launching Abbott HBsAg quantitative and
HCV Core Ag assay in Vietnam

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Acknowledgements
Firstly, I would like to greatly thanks to my tutor – the professor Le Nguyen Hau who has
helped me a lot in project direction, advices and comments so that I can finish this
marketing plan.

Secondly, I would like to send my honest thanks to my Commercial Director – Mr. Kyoung

Yong Lee who has given me the chance to understand more deeply the hepatitis’s business
of Abbott Laboratories and useful information to set up the marketing plan.

I also want to say thank you very much to all professors of the Master Business
Administration 2010-2011 course. I have already received a lot of information and
knowledges from these professors

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CONTENT
1.
2.
2.1
2.2
2.3
3.
3.1

3.2

4.

4.1

4.2
4.3
5.
445
5.1

Page
Executive Summary
7
General Introduction
11
Vision and Objectives of the project....................................................................11
Company............................................................................................................173
Product ...............................................................................................................118
Situation analysis
19
External analysis ..................................................................................................19
3.1.1 The Vietnamese IVD market overview ....................................................20
3.1.2 Environment (SLEPT) analysis ................................................................21
3.1.3 Competition analysis.................................................................................30
3.1.4 Target market analysis ..............................................................................31
Internal analysis .................................................................................................327
3.2.1 Profitability ...............................................................................................32
3.2.2 Product analysis ........................................................................................33
3.2.3 SWOT analysis .........................................................................................35
3.2.4 Key success factors of Abbott HBsAg quantitative and HCV core Ag....35
Marketing strategy
35

Targeting ..............................................................................................................36
4.1.1 Segmenting criteria ...................................................................................33
4.1.2 Choosing the target ...................................................................................36
4.1.3 Target customers.......................................................................................37
Re-Positioning strategy in VN market.................................................................40
Objectives of the marketing plan .........................................................................43
Marketing planning

Marketing program ...........................................................................................445
5.1.1 Product ......................................................................................................45
5.1.2 Price ..........................................................................................................49
5.1.3 Communication (Branding) ......................................................................50
5.1.4 Distribution ...............................................................................................52
5.1.5 Convincing target customers ....................................................................53
5.1.6 Customer relationship management..........................................................53
5.2
Budgeting.............................................................................................................55
5.3
Implementation and control .................................................................................55
6.
Conclution……………………………………………………………………….. 61
7.
Bibliography……………………………………………………………………...62

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Abbreviations

ADD

Abbott Diagnostics Division

IVD

In vitro diagnostic

ID

Infectious Diseases

IA

Immunology Assays

HEMA Hematology
CC

Clinical Chemistry

KOL

Key opinion leader

SWOT

Strength, Weaknesses, Opportunities, Threats

SLEPT Social, Legal, Economic, Political, Technical
HBV

Hepatitis B Virus

HCV

Hepatitis C Virus

Ag

Antigen

Ab

Antibody

TAM

Total Available Market

CRM

Customer Relationship Management

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Figures and Tables
Page
Figure 2.1: Performance graph of Abbott Laboratories in 2004-2009

17

Figure 2.2: Sales growth of ADD Vietnam in 2005-2010

18

Figure 3.1: Worldwide Hepatitis B prevalence map

22

Figure 3.2: Worldwide Hepatitis C prevalence map

23

Figure 3.3: Vietnam real GDP growth rate and Inflation rate in 2007-2023

25

Figure 3.4: National Medical budget in 2000-2008

25

Figure 3.5: International aid in 2000-2008

26

Figure 3.6: BMI short-term political stability rating – Asia Pacific 2010

28

Figure 3.7: Clinical review of a Hepatitis B patient

33

Figure 3.8: Clinical review of a Hepatitis C patient

34

Figure 4.1: The segmentation criteria based on potential customer’s characteristics
Figure 4.2: Value curve of Abbott hepatitis diagnostic vs. competitor (Roche)
Figure 4.3: Re-positioning strategy

36
40

42

Figure 4.4: Objectives of the marketing plan

44

Figure 5.1: Abbott HBsAg quantitative and HCV core Ag assays’ major
characteristics

45

Figure 5.2: The comparison of Abbott HCV core Ag assay with PCR – HCV
RNA method

47

Table 1: The target of this marketing plan

8

Table 4.1: The list of current high potential target customers in Vietnam
Table 5.1: The comparison of Abbott HBsAg quantitative with competitors
Table 5.2: Abbott HBsAg quantitative product generation
Table 5.3: Product comparison

38
46
46
48

Table 5.4: Budget for the communication campaign

55

Table 5.5: The implementation of Abbott HBsAg quantitative and HCV core Ag

55

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Final Project

Executive Summary
This part provides a brief summary about company overview, product and the
vision & objectives of the project.
VISION & OBJECTIVES OF THE PROJECT: The project is set up a
marketing plan to launch Abbott HBsAg quantitative and HCV core Ag in Vietnam
in 3 years (2012-2014). By launching Abbott HbsAg quantitative and HCV core Ag
assays, Abbott Laboratories has ambitions to be recognized as a leader and pioneer
in immunology field, especially in infectious disease diagnostic with a lot of
advantages in hepatitis assays.

SCOPE / PRESUMTION: This marketing plan will be performed in the scope of
Vietnam and followed up with three years (2012 – 2014). The expected outcome
for the project will be as below:
Table 1: The target of this marketing plan
2012
Awareness

2013

2014

- Top professors of

- 100% sub-

- 100% hepatitis

hepatitis in Vietnam.

clinical doctors of

doctors of target

- 100% sub-clinical

Non- Abbott

customers

doctors of Abbott

customers in target

accounts in target

customer list

customers list

- 50% hepatitis

- 100% hepatitis

doctors in non

doctors in Abbott

Abbott accounts in

accounts in customers

customers list

list
Sale

Increase 12% reagent

Increase 13%

Increase 14%

volume

sale in Abbott

reagent sale in

reagent sale in

immunology field

Abbott immunology Abbott
field

immunology field

Target customer is the big general hospitals of Vietnam, including about 40
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hospitals in North (especially in Hanoi), South (especially in Ho Chi Minh City)

and 3 hospitals in Central.
METHOD / PROCEDURE:
Situation analysis: will be performed with external analysis and internal analysis.
- External analysis: is the general information about the Vietnamese (IVD) market,
environment and competition, especially for hepatitis diagnostic. The market
analysis will perform the information about Vietnamese IVD market size, growth,
profitability and trend. The environment is analyzed by 5 aspects, including social,
legal, and economic and technical (SLEPT). In addition, the competitor analysis is
also perform in this part with the information about key competitors’ profile;
current and potential; direct and indirect competitors in hepatitis field. The
questionnaire can be used in this part to explore and assess customer expectation
and decision making influencing factors. The purpose of this analysis is to see the
market opportunities for HbsAg quantitative and HBV core Ag.
- Internal analysis: is the information about Vietnam Abbott Diagnostic Division,
including profitability (especially hepatitis B and hepatitis C assays), brand
awareness, brand image, coverage and key success factors of ADD Vietnam.
Product analysis is performed to show the benefit, advantages and disadvantages of
these products. SWOT analysis is used to summary
Marketing strategy:
- Segmenting - Targeting: indentify the segmenting criteria, including the main
segments; the number of hepatitis patient…The analysis of choosing the target
market with attractiveness (segment size and growth), competitive advantages
(competition, clients, substitutes, barriers to entry) and degree of risk are performed
to find the target customers.
- Positioning strategy in Vietnamese hepatitis market: the Blue Ocean marketing
model is use to draw the value curve (eliminate, reduce, rise and creation) of
Abbott hepatitis with the new products (HBsAg quantitative and HCV core Ag).
The curve will show the sustainable competitive advantages and Abbott core
differentiates and characteristics.
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- Objectives of marketing plan: regarding to the positioning strategy, the objectives
to achieve in the first 3 years (2012, 2013, 2014) when launching HBsAg
Quantitative and HCv core Ag assays is showed with the time to the market
(months), brand awareness (% of target customers know the brand), brand image
(% of target customers know HBsAg Quantitative and HBC core Ag assay), market
penetration (% usage by target customers), profitability (% total revenue) and target
market share (% market share).
Marketing Planning:
- Marketing program:
- Product: includes marketing notion (using Levitt‘s Total Product concept) contains
Generic (core benefits: good performance, good quality, installation, training,
guarantee…), augmented (innovative technology, novel markers, after sales
service, scientific seminars to introduce new applications..), expected and potential
aspect and product portfolio management with attractiveness of the market and
competitive advantage.
- Price: will be set up a high but reasonable price based on 2 elements, including
Abbott Diagnostics leader position in the market and the general Abbott
Diagnostics Brand image perceived by customers during the past years. Abbott
wants to strengthen the pioneer position in hepatitis diagnostic segment.
- Communication (Branding strategy): with communication message is “the new

option for physician in hepatitis treatment and the better care for hepatitis patients”.
The communication tools will be advertising materials (brochures, handbooks...),
PR (group table discussion, Symposia & Seminars, Sponsoring…). The strategy
will focus on brand awareness(launching events like Focus group table discussion,
Symposium), exam plus (hold scientific seminars to introduce new applications,
clinical guidance…; Sponsor international & national scientific events about
Hepatitis diagnosis) and beliefs (high quality & innovative product with planning to
launch these products to strengthen the power of hepatitis diagnosis, good QA
management system according to FDA requirements to improve the manufacturing
process as well as the stability of product and controlling the product quality after

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selling to customers.
- Distribution: Mutual support with current distributors by training their sales staff
about new product information, engage with them by a bilateral marketing action
plan to ensure the coherence; control the execution by monthly meeting…Prepare
an as much as accurate forecast about sales to ensure good stock for selling.
- Convincing target customers: Sales force will be set up target sales and customers
based on regions (North, Central, and South) and number and size of hospitals.
They are training on selling skills, product information, motivation and control

(incentive and bonus based on performance evaluation)
- Budgeting: It is depending on the increase of revenue year after year. The first year
is strongly focused with 10% target of revenue increase for marketing. The next
year is 4% and the last year is 2%
- Implementation (who, what, where, when, how and why) with phases and
milestones; action plan
- Tracking (based on SMART objectives) with monthly review (including evaluate
and correction) and yearly business review (in kick-off meeting) to identify the
gaps and update the plan.
DATA SOURCE:
Primary data: Use a questionnaire to explore & assess Customer Expectations,
Decision making influencing factors and figure out the market opportunities for
Abbott HBsAg Quantitative and HBC core Ag assay.
Secondary data:
- External: internet website of Abbott, Roche (main competitor), Espicom Business
Intelligence the Department of Diagnosis and Treatment Administration, The
Department of Health, Vietnam Business news, WHO, National Action Plan to
improve managerial competence for medical testing laboratories from now until
2020, Business Monitor International Ltd, Euromonitor International.
Internal: Abbott Diagnostics Division (ADD) sale report 2010 – 2011

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2.

General Introduction

2.1

Vision and Objectives of the project

Final Project

Abbott Diagnostics is a global leader in in vitro diagnostics (IVD) and offers a
broad range of innovative instrument systems and tests in Immunology field,
hematology (HEMA) filed and clinical chemistry (CC) field. At Abbott, leading
science and innovation are the key words to develop new products. The reputation
of Abbott Diagnostics started by their strong position in immunology assays (IA),
especially infectious diseases (ID) assays such as AIDS, Hepatitis... Not like the
pharmaceutical or nutrition division, the business of Abbott Diagnostics division is
B2B with target customers are hospitals, reference labs, blood banks, physician
offices and clinics. Moreover, as a kind of healthcare products, the IVD product is
regulated by the Ministry of Health in most of countries in the world. Therefore,
the marketing of the IVD product is limited to scientific activities like symposia,
seminars, sponsoring for scientific studies…
The new scientific application and innovative technology is the most important
core differentiation of an IVD product. An IVD product can be “alive” in the
market until a new scientific application/ technology is discovered to improve
health care, and it can be several years to several decades.
In the beginning of 2012, and Abbott Diagnostics is developing a new strategy to
maintain our leading position. This strategy is “protecting ID” to “grow IA” and
then “leverage HEMA and CC”. One of important action to perform the first part of
this strategy (protecting ID) is launching new assays of hepatitis diagnostic which

are Hepatitis B surface antigen (HbsAg) quantitative assay and Hepatitis C virus
core antigen (HCV core Ag) assay. In the past, these assays were performed with
another method with high cost and long time (1 – 2 days) to get the result. With the
new method of Abbott, the price is decreased 30%, the time to get the result is just
45 minutes and the quality is nearly the same comparing with old method. With
these advantages, the physicians can perform these assays frequently to see the
changing of the patient closer than old method with high price and long time. In
addition, the patient will be treated better with these new assays. However,
Vietnam Abbott Diagnostics is sale oriented division. Therefore, all of new

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products come to the customer by sale activities (B to B). The salesman comes to
the customer to introduce about the new products by their own ways. There are
some events performed to follow the direction of global marketing but they are not
effective. Sometimes the users do not understand clearly about the benefit and
value gained when they have the products. To be more effective in launching a new
product, a standard marketing plan is needed for HbsAg quantitative and HCV core
Ag assays. With a lot of advantages, these products will come to the physicians to
support their treatment and the patient will be cared better.
The marketing plan for Abbott Diagnostics’ new IVD products is usually set up for

3 - 5 years which will cover whole growth stage of the product life cycle before
declining in the market (there will be a substitution then). Moreover, the first year –
the launching year always plays a decisive role to the success of the marketing
plan.
The project is set up a marketing plan to launch HbsAg quantitative and HCV core
Ag assays in Vietnam in 3 years (2012-2014). By launching these innovative
assays, Abbott Laboratories has ambitions to be recognized as a leader and pioneer
in immunology field, especially in infectious disease diagnostic with a lot of
advantages in hepatitis assays.

2.2

Company
Company history

The history of Abbott's Diagnostics Division is an
impressive record of innovation. Abbott Diagnostics' history is filled with examples
of first-of-a-kind products and significant technological advancements. This
tradition of innovation has been sustained through a consistent commitment to
diagnostic research and development.
Abbott Diagnostics is a global leader in in vitro diagnostics (IVD) and offers a
broad range of innovative instrument systems and tests for hospitals, reference labs,
blood banks, physician offices and clinics. With more than 69,000 institutional
customers in more than 100 countries, Abbott's diagnostic products offer customers
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automation, convenience, cost effectiveness and flexibility. Abbott has helped
transform the practice of medical diagnosis from an art to a science, helping to
create the modern diagnostics industry through the company's commitment to
improving patient care and lowering overall costs.
The resident representative office in Vietnam of Abbott Laboratories was established
in 1995. Operating for more than 15 years, Abbott Diagnostics Division (ADD) has
still maintained the leading position in The Vietnamese IVD market, especially in
immunological segment and kept growing strongly. The Representative Offices in
Hanoi and Ho Chi Minh City cover the IVD market throughout the country from
North to South.

Company reputation & values
Company branding

Abbott Diagnostics brand is one of 19 business lines of
Abbott Corporation and it follows the Abbott Corporation Branding system. Abbott
Corporation Branding identity has a unique “A” logo with the signature "A Promise
for Life".
•

Brand promise: "A Promise for Life - Turning Science into Caring "
Caring is central to the work we do and defines our responsibility to those we
serve:
-

We advance leading-edge science and technologies that hold the potential
for significant improvements to health and to the practice of health care.

-

We value our diversity – that of our products, technologies, markets and
people – and believe that diverse perspectives combined with shared goals
inspire new ideas and better ways of addressing changing health needs.

-

We focus on exceptional performance – a hallmark of Abbott people
worldwide – demanding of ourselves and each other because our work
impacts people’s lives.

-

We strive to earn the trust of those we serve by committing to the highest
standards of quality, excellence in personal relationships, and behavior
characterized by honesty, fairness and integrity.

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We sustain success – for our business and the people we serve – by staying
true to key tenets upon which our company was founded over a century ago:
innovative care and a desire to make a meaningful difference in all that we
do.

The promise of our company is in the promise that our work holds for health
and life.
•

Brand values:
“Pioneering” - Leading-edge science and commercialization.
“Achieving” - Customer-focused outcomes and world-class execution
“Caring” - Making a difference in people’s lives
“Enduring” - Commitment and purpose

Company reputation
Abbott is ranked among the top companies in the world for financial strength and
workplace excellence by leading national publications, including:
Barron’s

Ranked 24th on Barron’s “World’s Most Respected
Companies” list.

Business Week

Named one of the “Best Places to Launch a Career.”

DiversityInc

Named one of the “Top 10 Companies for Diversity.”

Forbes

Ranked 118th on the Forbes Global 2000 list (ranked by
2008 sales, profits, assets and market value).

Fortune

Ranked 1st among the “Most Admired Companies” in the
pharmaceutical sector.
Ranked 80th on the Fortune 500 list of the largest U.S.based corporations (ranked by 2008 revenue).

The Scientist

Named one of the “Best Places to Work in Industry.”

Working

Named one of the “Top 10 Best Employers Mother for
Working Mothers.”

Source: Abbott Fact Book 2010 – www.abbott.com.

Company Mission
Abbott Diagnostics’ mission is to be the leading in vitro diagnostic company as
measured by customer satisfaction and economic profit. We must behave with our

customers in a manner that supports their needs. For our customers – directors of
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clinical laboratories, administrators of hospitals, physicians ordering tests,
technicians at the bench – our brand and message will portray Abbott Diagnostics
as their dedicated laboratory partner who offers innovative science, diagnostic
solutions and services. For laboratory professionals and clinicians, they will see
that ADD provides the tools necessary for them to excel as scientists in their field.
Our offerings ultimately help our customers provide better patient management.

Business figures
Product portfolio
Our broad range of diagnostic instruments and tests are used
worldwide in hospitals, reference labs, small size laboratories
and clinics to aid in the diagnosis of a range of serious health
issues such as infectious diseases, cancer, and diabetes, as well
as monitor other important indicators of health.
Source: Abbott Laboratories – www.abbott.com

Automation: ACCELERATOR Automatic Processing System (APS)
Software: Instrument Manager, Informatics Services

Transfusion: ABBOTT PRISM, Commander, Quantum II
Hematology: CELL-DYN Family instruments have provided efficient, flexible and
dependable hematology products and solutions to laboratorians world wide for over
25 years.
Immunochemistry: The ARCHITECT family of analyzers magnifies the impact of
sophisticated technologies by delivering the first truly integrated portfolio of
immunoassay and chemistry instruments. Featuring unique technologies like the
Robotic Sample Handler, FlexRate and CHEMIFLEX, ARCHITECT systems
make it easier to get to the science that really matters. Ask your Abbott
representative about our growing portfolio.
Abbott Diagnostics offers comprehensive assay menus:
Cancer

Retrovirus

Cardiac

Metabolic

Drugs of Abuse/Toxicology

Renal

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Fertility/Pregnancy

Special Chemistry

General Chemistry

Specific Proteins

Infectious Disease

Therapeutic Drug Monitoring

Congenitals

Thyroid

Hepatitis

Transplant

Sales figures
Performance Graph
The following graph compares the change in Abbott’s cumulative total shareholder
return on its common shares with the Standard & Poor’s 500 Index and the
Standard & Poor’s 500 Health Care Index.
Source: Abbott Financial Report 2009 – www.abbott.com

Figure 2.1: Performance graph of Abbott Laboratories in 2004-2009

Assuming $100 invested on 12/31/04 with dividends reinvested.

Abbott’s revenues are derived primarily from the sale of a broad line of health care
products under short-term receivable arrangements. Sales in international markets
are approximately 50 percent of consolidated net sales.

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ADD Vietnam sales figures
Being a leader in Vietnam IVD immunological market for over 10 years, since the
market was immature, ADD Vietnam has been being kept growing strongly along
with the market growth. During the past 5 years, ADD Vietnam’s sales growth has
been achieved double digits of percentage per year.
Figure 2.2: Sales growth of ADD Vietnam in 2005-2010
Sales ($M in USD)
14

12

10
8

ADD Vietnam

6
4
2
0
2005

2006

2007

2008

2009

2010

Year

Source: ADD Vietnam Sales Report 2005-2010

2.3

Product
Abbott HBsAg Quantitative:
The ARCHITECT HBsAg assay is a chemiluminescent microparticle immunoassay

(CMIA) on the ARCHITECT i System* for the quantitative determination of
hepatitis B surface antigen (HBsAg) in human serum and plasma.
HBsAg assays are routinely used to aid in the diagnosis of suspected hepatitis B
viral (HBV) infection and to monitor the status of infected individuals, i.e., whether
the patient’s infection has resolved or the patient has become a chronic carrier of
the virus.

Abbott HCV Core Ag:
The ARCHITECT HCV Ag assay is a Chemiluminescent Microparticle
Immunoassay (CMIA) on the ARCHITECT i System* for the quantitative
determination of core antigen to Hepatitis C virus in human serum and plasma.
HCV Ag assays are used as an aid in the diagnosis of suspected Hepatitis C viral
(HCV) infection and to monitor the status of infected individuals, i.e.,whether the
patient’s infection has resolved or the patient has become a chronic carrier of the
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virus.
General characteristics:
Each assay will be offered to the customers as a
whole reagent set, including Reagent kit, Calibrator
and Control. The Reagent kit will have 2-3

packaging sizes based on the demand of target
customers: 100 tests/kit, 500 tests/kit and 2000
tests/kit.
Source: Abbott Laboratories – www.abbott.com

*These assays are offered to run on Innovative and Quality Abbott integrated systems

IA

CC

Integration

High

/ / /
Med

Low

Source: Abbott Laboratories – www.abbott.com

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3.

Situation analysis

3.1

External analysis

Final Project

3.1.1 The Vietnamese IVD market overview
Market size & growth
In 2010, the Vietnamese market for medical equipment and supplies is estimated at
US$515 million, or US$6 per capita. It is expected that the device market will
continue to expand strongly at 15.3% per annum. This will take the Vietnamese
market to over US$1 billion in 2015, although the per capita rate will remain low.
An estimated 86.5% of the medical device market is supplied by imports, and the
sector is growing rapidly. Singapore, China and Japan are the leading suppliers,
accounting for 43.1% of imports in 2008

The Vietnamese IVD market is small

in Asia, but fast-growing with double digit growth. (Source: Espicom Business
Intelligence (www.espicom.com) - The Medical Device Market: Vietnam - June 13th 2011)

According to statistics data provided by the department of Diagnosis and Treatment
Administration - Vietnam Ministry of Health, in 2009 we have totally 1063
governmental hospitals, 94 private hospitals, and all hospitals have set up the
medical testing laboratories; and thousands of medical testing clinics & centers in
Vietnam’s diagnosis and treatment system. The number of Immunochemistry tests
in 2008 were 98,006,230 and in 2009 were 124,228,570 which make 2009/2008
Immunochemistry tests’ growth of 126,8%. (Source: The Department of Diagnosis and
Treatment Administration – www.kcb.vn)

Market trend
Improving healthcare system is the government focus in the coming years, so there
would be a lot of demand for equipments used in medical imaging, intensive care,
patient-monitoring,

operating

theaters,

cardiac

treatment,

laboratory

and

diagnostics and consumables. Improved living standards and income will lead to
improved healthcare expenditure, especially increasing the number of Vietnamese
people taking regular health-checking courses.
(Source: Vietnam Business news - www.vietnambusiness.asia)

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3.1.2 Environment (SLEPT) analysis
Social environment
Population
Vietnam is still a very young nation with the population of about 88 million people.
Vietnam adds 1.2 million people to its population every year. However, the country
is evolving. It is becoming more wealthy and its healthcare system is helping to
increase life-expectancy. At the same time, families are shrinking in terms of
number of children. It was very common to see families with 10-12 children ten
years ago. These days, it is more common to have 3-4 children in a family. The
current birth-rate close to 1.9 children per woman, is below the 2.1 required for
replacement of generations. At the moment, estimated 10.208 million people as of
20,3% Vietnam population are aged 50 years and above. By 2050, it is estimated
that 26% of Vietnam’s population would be aged 60 years and above. These factors
obviously will have tremendous impact on the nation’s healthcare requirements, the
kinds of prevalent diseases in Vietnam, and pension schemes in the years to come.
(Source: www.asiabiotech.com - Vietnam Healthcare - The Next Growth Frontier?by V.K. Sanjeed Volume 13 > Number 10 > 2009; www.gso.gov.vn – National Statistics Department – Population
per age 2000-2010)

Demand for testing and treating Hepatitis B,C diseases
Hepatitis types B and C lead to chronic disease in hundreds of millions of people
and, together, are the most common cause of liver disease and cancer. And
Vietnam is in the group of countries having Intermediate-High prevalence in the
world.
Hepatitis B: About 2 billion people worldwide have been infected with the virus
and about 350 million live with chronic infection. An estimated 600,000 persons
die each year due to the acute or chronic consequences of hepatitis B.
In Vietnam hepatitis B infection is present in 10% to 20% of the general population
and is the cause of up to more than 80% of liver disease and cancers in the country.
Co-infection rates amongst people living with HIV are also around 10%.
(Source: />
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Figure 3.1: Worldwide Hepatitis B prevalence map

(Source: CDC Travelers’ Health - Yellow Book 2012)

Hepatitis C is also a contagious viral infection of the liver, but for which no
vaccine has yet been developed. Hepatitis C infections are found worldwide with
some 130-170 million people chronically infected, and more than 350,000 people

die from hepatitis C-related liver diseases each year.
Hepatitis C in Vietnam is a growing concern. People who inject drugs have
especially high prevalence of hepatitis C infection, with up to 98.5% of them
infected with the virus in Vietnam.
(Source: />
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Figure 3.2: Worldwide Hepatitis C prevalence map

(Source: CDC Travelers’ Health - Yellow Book 2012)

As the growing prevalence of hepatitis B & C in Vietnam shown above, the
demand of testing these assays in screening of blood & transplant donors and
monitoring the treatment of patients are significantly high.

Legal environment
The governmental management units of the Ministry of Health are currently
including the department of Diagnosis and Treatment Administration, Medical
Preventive department, the department of Medical Environment Administration,
the department of Food Safety and Hygiene, HIV/AIDS preventive department.
These departments manage the medical testing laboratories based on professional

vertical axis, there has not been any department of the Ministry of Health to be in
charge of the management of medical testing laboratories as well as no quality
control center, reference laboratories, legal system and documents, standardized
testing procedures…
The improvement of medical testing services as well as other healthcare services
have not been got the equal & proper care. Moreover, there has not been any

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integration between medical testing professional majors about management and
differentiation in their services at different levels.
(Source: National Action Plan to improve managerial competence for medical testing laboratories
from now until 2020 – Chapter 3)

Economic environment
GDP growth
Vietnam has been one of the fastest-growing economies in Asia in recent years,
with GDP growth averaging 7.6% annually between 2000 and 2009. The economic
boom has lifted many Vietnamese out of poverty, with the official poverty rate in
the country falling from 58% in 1993 to 20% in 2004.
GDP (purchasing power parity):

$276.6 billion USD (2010 est.)
country comparison to the world: 42
GDP (official exchange rate):
$103.6 billion USD (2010 est.)
GDP - real growth rate:
6.8% (2010 est.)
country comparison to the world: 40
GDP - per capita (PPP):
$3,100 USD (2010 est.)
country comparison to the world: 166
GDP - composition by sector:
agriculture: 20.6%
industry: 41.1%
services: 38.3% (2010 est.)
(Source: CIA – The World Fact Book – Vietnam 27 Sep 2011).

In the coming years, Vietnam can keep this GDP growth rate. The Economist
estimates that GDP growth rate will stably increase until 2023 as shown in the
figure below:

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Figure 3.3: Vietnam real GDP growth rate and Inflation rate in 2007-2023

Healthcare expenditure & investment
According to WHO Statistics Full report on Health Expenditure, Vietnam has
rapidly increased Total expenditure on health as a percentage of gross domestic
product (GDP) (> 7%) in the region; in which the General government expenditure
on health as a percentage of total expenditure on health lower than private source.

Figure 3.4: National Medical budget in 2000-2008

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Vietnam has received a large amount of international aid in the form of loans and
donated medical equipment. A number of small projects are currently taking place
in Vietnam, including those funded by the World Bank and the EU.
Figure 3.5: International aid in 2000-2010

(Source: The Department of Health of HCM city www.medinet.hochiminhcity.gov.vn)

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