Description

INDUSTRY ANALYSIS

GENERAL DESCRIPTION OF THE MARKET

About Vietnam

Vietnam is a country located in Southeast Asia. Vietnam is the most populous country among the

mainland Southeast Asian countries. In 1986, the Vietnamese government carried out an

economic reform named Doi Moi (translated to mean “renovation” in English). This reform

opened the country’s borders and prepared it for globalization. Vietnam achieved around 8%

annual GDP growth from 1990 to 1997 and continued to grow at a rate of 7% from 2000 to 2002,

making it the second-fastest growing economy in the world.

Vietnamese internet development

As of June, 2016 Vietnam has 49,063,762 Internet users (equivalent 51.5% of the population).

This makes Vietnam one of the top 20 countries in the world which have the highest number of

internet users (Internet World Stats, 2016).

Smartphone users

According to a list of countries organized by smartphone penetration as measured by Google's

Our Mobile Planet, in 2013, 19.7% of the Vietnamese population owned a smartphone. But in

2015, this number had increased to 35% of the population (ranked 25 th in the world, top 10 in

Asia).

TRENDS AND STRATEGIC OPPORTUNITIES WITHIN INDUSTRY

Health and Well-being concerns

Vietnamese spend a lot on healthcare services. According to Forbes, “Vietnam is a rapidly

developing country and conditions have changed. Starting in 2012, Vietnam’s GDP growth

steadily climbed, finally reaching 6.68% in 2015. As the economy grew so did demand for health

services. Spending on private healthcare grew 241% over the past decade. And healthcare

spending now accounts for 7.2% of Vietnam’s GDP – the highest in the region.”

Vietnamese healthcare system cannot satisfy the demand for medical services. According to the

World Health Organization, “there are only an average of 7 to 8 healthcare workers and 25

hospital beds for every 10,000 Vietnamese citizens.” This is much lower than the world average,

which are 15 healthcare workers and 30 beds per 10,000 people.

Challenging

Although Vietnam Care will be the first company offering online healthcare consultant services,

there a lot of potential firms with the capital and human resources that can enter this industry.

These include VNPT, Viettel, FPT, CMC and Bkav. Since they have the resources and have built

a reputation, these companies can join the healthcare industry if they deem it profitable.

TARGET MARKET

MARKET

Our users – the patients

Vietnam Care’s target market includes Vietnamese people who use smartphones and tablets

between the ages 16 to 55. Our services provide similar healthcare benefits to most patients as

healthcare organizations. Technically, Vietnam Care is using an undifferentiated targeting

strategy, that is everyone might be considered a potential user of our services.

Our partners – the doctors

Our partners are doctors seeking to earn extra income by doing private practice online. Research

shows that over 50% of doctors in Vietnam have both a private practice and work full-time in a

hospital. It is expensive to open private clinics for their private practice. Our target partners

include doctors and nutrition experts who have earn less than $6,000 annually and are aged

between 30 and 55 years old.

In order to partner with Vietnam Care, a doctor must have a computer, tablet or smartphone.

They also must have a valid document license for medical examination and treatment certified by

the Ministry of Public Health of Vietnam.