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Environmental scanning on Vietnam have to be done before the decision of internationalizing Prince Court expansion. It is important in the sense that environment scanning will directly and indirectly decide how Prince
Court will fair in Vietnam. Important aspect at such political, economic, potential demands etc is being analyzed on.

The effort of the Vietnam’s government plays an important role in determining the healthcare industry performance. With the underdevelopment of the healthcare in Vietnam, the government of Vietnam prioritize government spending on health care at the same time encouraged foreign investor invest in the Vietnam Healthcare industry with several ways such as through Private Partnerships (PPP), joint venture with local players in Vietnam. On top of that, investors enjoy a preferential corporate income tax of 10 per cent instead of the regular 25 per cent. In relation to the tax exemptions, exception of tax will be granted in the first four years and in the following nine years there will be 50 per cent tax break (HKTDC, 2015). Besides, investors are allowed to operate a 100 per cent owned hospital with the elimination of restricted policies such as foreign qualified doctors are free to practice and healthcare plans are allowed to offer (Austrade, 2015). This plays a crucial part to Price Court whether the decision of entering Vietnam with joint venture or wholly owned since the cost incurred will have a large differential under the government policies.


Table 1

With the growing population of 87 million, 13rd most populous country in the world hence there is no doubt that Vietnam potentially be the destination for healthcare industry investments. Over the past years, Vietnam has become one of the fastest growing economies in Asia with promising GDP growth of around 8% in recent (UK Trade and Investment, 2011). Table 1 shows a growth of GDP since the year 2006 and it is expected to be on average growth of 6% in the coming year. (Worldbank, 2015). With the impressive GDP figure, it indicates that the expansion into Vietnam will have a higher chance of success since the GDP shows a rising in figure. A strong GDP generally acts an as indicator of a nation’s economy health where the living standards of the nation is rising as well.
Besides, since the event of becoming a member of WTO in 2007, Vietnam’s import demand is said to have a growth of roughly 250% in the year between 2010 to 2020 which is faster than any emerging market including country such as China. With such, it makes Vietnam an attractive market (Opentoexport, 2014).


The social factor does directly and indirectly affects the demand of Prince Court medical services and how it operates. According to the Vietnam’s need for health care since it will directly help the population ageing and dangerous level of diseases such as Ebola Virus and avian influenza type H5N1 and H7N9 (Vietnamnews, 2015). The shortage of healthcare issues in Vietnam still persisted as it unable to meet the country’s challenge such as the increasing in cost burden since more and more Vietnamese are diagnosed with treatable long-term chronic disease such as diabetes and heart disease. Besides, Vietnam struggle to make a perfect balance between accessibility, quality and affordability healthcare up till this date. (Forbes, 2015). With the limitation of healthcare in the rural area, the resident from the rural area will travel to the city for treatment however the worst case scenario is whereby hospitals in the cities suffer from daily overcrowding, with Ho Chi Minh City being worst affected (Justlanded, 2015). Hence, the government increasing its spending on healthcare and strongly encourage foreign investor to look into the healthcare industry to meet its rising demands. In the aspect of the western healthcare products, Vietnam’s emerging consumer are starting to demand for western healthcare as evidenced by the western brans are now populated across Vietnam. With such changes in social culture as compared to the past, Prince Court can look into Vietnam market as there is a changed in perceptions towards the western healthcare. (Forbes,2015).


In regards to the healthcare technology, the Vietnam government is paying much attention on it by giving preferential to foreign invested project by using much advanced technology to produce medical drugs which is capable to meet the international standards (UK Trade and Investment, 2011). A large amount up to US$1.5 Billion invested by the government to make the pharmaceuticals a key economic and technical industry. Besides, efforts including upgrading GMP standards, developments and expansion of supply of network to rural areas and establishment of joint ventures with foreign investors makes foreign players such as Prince Court have economical edge when enter into Vietnam market (UK Trade and Investment, 2011). Shortage of healthcare in rural area makes Vietnam government heavy emphasized in Information Technology in healthcare systems whereby in ten years time, the Vietnam market will start to move in an increasing fashion (Sanjeed, 2009).


The potential demand for healthcare services in Vietnam is another aspect to look at before deciding to jump into the bandwagon. One of the main problem that caused rising demand of foreign health investment is Vietnam suffers from hospital overcrowding for the past years for example, Vietnam has about 4.5 doctors per 10,000 people (Sanjeed, 2009). This figure shows a high shortage or man power especially in country with such high population. Hospitals in the city, take Ho Chi Minh City as example is suffer from daily overcrowding not to mention in the rural area where there is insufficient healthcare services to meet the population’s demand. In relation to this, the worst case scenario is the healthcare provided is below average care, too little personnel and equipment hence does not serve the demand of the consumers. (Justlanded, 2015). It is said that demand is rising for better healthcare services from Vietnamese population of which large portion of them have increased wealth, aging and growing populations is driving foreign health investment where these foreign investor hope to address the challenge in Vietnam healthcare industry through their involvements (Onevietnam, 2014). From the financial perspectives, it shows an increase in total revenue from $8.20 billion in 2011 to $12.01 billion in 2015. With that financial data, it shows that there is a drastically increased in healthcare spending which arises from the rising demands. It is believe that with an increase in communicable and non-communicable diseases, appealing investments policies and changes in health insurance schemes give rise to a strong opportunity of growth as a whole (Healthcareitnews, 2012).

Austrade, (2015). ‘Healthcare To Vietnam’, viewed 13th May 2015, retrieved from

Forbes, (2015). ‘Healthcare In Vietnam’, viewed 13th May 2015, retrieved from

Healthcareitnews, (2014), ‘Indonesia, Vietnam grow healthcare IT market‘,viewed 13th May 2015, retrieved from

HKTDC, (2015). ‘Vietnam private healthcare sector lure foreign investors’ viewed 13th May 2015, retrieved from

Justlanded, (2015). ‘Health Care In Vietnam’, , viewed 13th May 2015, retrieved from

Onevietnam, (2014). ‘Healthcare – The Next Booming Vietnamese Market’, viewed 13th May 2015, retrieved from

Opentoexport, (2014), ‘Healthcare sector in Vietnam’, viewed 13th May 2015, retrieved from

Sanjeed, V.K. (2009), ‘Vietnam Healthcare - The Next Growth Frontier?’,13(10), pp. 19-24

UKtrade&transfer, (2011). ‘Health Care Opportunity In Vietnam’. Business Management Training Project.

Vietnamnews, (2015). ‘Rising healthcare demand, new diseases set to tax health sector’ viewed 13th May 2015, retrieved from

Worldbank, (2015). ‘World Development Indicator’, viewed 13th May 2015, retrieved from

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