India’s medical devices manufacturers should focus on Vietnam’s burgeoning market which meets nearly 90 per cent of its demand through imports, EEPC India said on Thursday.
Around 50 manufacturers in Vietnam contribute less than 10 per cent to the market share.
Council’s Chairman Mahesh Desai said that Japan, Germany, the US, China, and Singapore account for nearly 55 per cent of the total medical devices imported by Vietnam.
“Vietnam appears among the top markets in India’s exports of medical devices and also acts as a springboard to the ASEAN countries,” he said 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.
In terms of incentives, 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,” Desai said.
As per estimates, India’s medical devices industry has been scaling up production at a faster pace with a potential to become a global powerhouse in the sector over the next few years.
Currently, the industry has a market size of $11 billion, and it is projected to reach $50 billion by 2025.
“Given the rise in demand for medical equipment globally ranging from consumables and disposables to high-value engineering healthcare products and devices in the wake of Covid-19 pandemic, there is huge export potential for Indian suppliers,” EEPC India said.
Medical devices export from India is projected to grow at a CAGR of 30 per cent to $10 billion by 2025 from $2.1 billion in 2020.