國際醫療Business News

Home/Business News /Business News list
Long-term care industry in Vietnam
Source:VCCI and other local reports From:Taiwan Trade Center, Representative Office in Hanoi Update Time:2022/07/05

1. Current Market Overview

The long-term care industry market report will be mainly focus on the services for elderly population in Vietnam as the population is expected to be the main users or customers of such kind of services. 

According to a Vietnamese research, most elderly care services are provided mainly by family members or outsiders who are mostly uneducated. Family-based care is increasingly decreasing and insufficient. Some people with complex care needs require support beyond what family members can provide. 

On the public hospital view, according to the data from the National Committee on the Elderly, the number of hospitals and departments specializing in geriatrics in Vietnam is very limited compared to increasing population of elder people. There is only one hospital, i.e., the National Geriatric Hospital, in the country exclusively serving the elderly and 49 of 62 provinces have geriatric departments at provincial general hospitals. A total of 106 geriatric departments have been established at provincial and municipal general hospitals and central hospitals, over 10,000 inpatient beds with priority for the elderly and 1,791 medical staff trained in geriatrics. It is not only the facilities (layout, equipment) but also medical staff is very limited.

Currently, there is no special criteria regulating on care services. High quality care services are available in some places. The Ministry of Health and Ministry of Labour, Invalids, and Social Affairs has programs that provide elements of long-term care and some large organizations and the private sector also provide the services. However, there is no comprehensive long-term care based model or national integration of different services with a long-term perspective on human-centered care. And it mainly supports home-based services and residential homecare. 

2. Market Trend 

According to Vietnam Chamber of Commerce and Industry (VCCI)’s report, the majority of labor with age 15-59 was 64.85% in 2019, decreased nearly 2% within 10 years from 2009. It came to a conclusion that Vietnam has entered aging population and become one of the fastest aging rates in the world. The main reason of increased elderly population in Vietnam is due to the improving on the growth of economic development as well as the increasing number and quality of health care services. Furthermore, the average age in Vietnam has increased from 62 years to 71 years for men and from 67 to 76.3 years for women between 1989 and 2019. It is forecasted by Vietnam’s General statistic office to reach 72.7 years for men and 78.7 years for women by 2034.

Also, the research also showed the population at age 60 and over in Vietnam increased from 4 million people, accounting 6.9% of population in 1979 to 7.45 million people, accounting for 8.68% of the population in 2009 and 11.41 million, accounting for 11.86% of the population in 2019. The trend is expected to increase and forecasted to reach 21 million people, accounting 20% of population by 2038.

With increased population of elderly population, increased rates of chronic diseases, and awareness of such services, according to Data Bridge, it is forecasting the market will be valued at US$1,944 billion in 2027. 

Therefore, all major researches have indicated that the market of long-term care services for the elderlies in Vietnam is with great potential at forecasted 20 million population by 2035.

3. Regulations & conditions on facilities and human resources

Excerpt from Decree 103/2017/ND-CP issued on September 12, 2017 of the Government regulating the establishment, organization, operation, dissolution and management of social assistance establishments 

Article 23. Environment and location 

The establishment must be located at an accessible location to traffic, schools, hospitals, fresh air that is beneficial to the health of the subjects; electricity, and clean water for daily life. 

Article 24. Facilities The establishment must ensure the following minimum physical conditions: 

1. Natural land area: On average 30 m2 /object in rural areas, and 10 m2 /object in urban areas. For mental health care and rehabilitation facilities, the natural land area must be at least 80m2 /each in urban areas, 100 m2 /each in rural areas, and 120 m2 /each in mountainous areas (supplemented in Decree 103/2017) 

2. The average living space for each person is at least 6 m2 /each. For the older persons who have to care for 24/24 hours a day, the average living room area must be at least 8 m2 /each. The living room must be equipped with the necessary tools for the beneficiary’s daily activities. 

3. The establishment must have a living area, a kitchen area, a working area for employees, an amusement park, a water supply, and drainage system, electricity, and internal roads; production and occupational therapy areas (if possible) (Decree 103/2017 removes the limit on the number of the older persons) 

4. Working tools must be convenient for older persons, people with disability and children to access and utilize. 

Article 25. Social support workers 

1. Social support workers must meet the following criteria: 

a) Having the health to provide social assistance to the beneficiaries; 

b) Having full civil act capacity; 

c) Have good moral qualities, do not suffer from social evils, and are not subject to criminal prosecution or have been sentenced but have not yet had their criminal records cleared; 

d) Having skills to help the target audience. 

2. Having a team of social assistance staff who are sufficient in number and qualified to meet appropriate standards to perform the tasks of the facility.

4. Business Opportunities 

According to VCCI’s report, the long-term care service market for the elderly people in Vietnam has great potential, especially when Vietnam's population aging ranks 3rd in ASEAN. However, Vietnam will face the challenge of providing and paying for long-term care services for the older persons.

In order to promote services, the government has announced Decision 403/QD-BYT dated 20 Jan 2021 on Healthcare for the Elderly, detailed the guidance for the Plan until 2030. The Decision set the framework for service development, for the partnership between public and private sector with the following key pillars:
(1) Development the models for health care for the elderly:
- Investment to build capacity for hospital (except pediatric hospitals), to enhance the capacity for examination, for rehabilitation and for provision of technical assistance to medical staff for primary care;
- Hospitals at national, provincial and district levels (except pediatric hospitals) to develop standards for geriatric outpatient department, geriatrics departments, special beds for the elderly in general hospitals;
- Health clinics in communes and wards to carry out tasks for primary care and to prevent non-infectious diseases for the elderly at their home and in the community. The key mandates include: knowledge building on physical body building, health improvement, knowledge building for prevention of chronical diseases and other popular diseases of the elderly, provision of primary care and rehabilitation assistance at the community;
(2) Development of models of Day-care center;
(3) Development of models of elderly’ healthcare clubs; inclusion of elderly care in intergeneration clubs and other clubs of the elderly. Development and support for
community volunteers to monitor, and provide assistance to local elderly with their
chronical and non-infectious diseases in their home;
(4) Development/pilot the models of elderly-friendly communes;
(5) Development/Pilot models of Elderly nursing homes/centers with suitable modalities,
to socialize and involve private investment in the models;
(6) Development/pilot IT application in provision of elderly health care service;
(7) Regular training and retraining for medical staff and caregivers for elderly in all levels
 and facilities; population associates and volunteers in the community

In conclusion, we could see the Vietnamese government will start to put attention on the care on the elderly population. It is suggested for Taiwanese companies to start to evaluate, understand the local regulation and develop some partnership to enter the domestic market in Vietnam through business visit or joining professional exhibitions.

5. Long-term care facility list in Hanoi 

No.

Name

Type

Management company

Fee/Month

1

Nhan Ai Elderly Care Center

Private

Nhan Ai International JSC.,

VND 9,000,000 – 17,000,000

(USD390~USD740)

2

AHL Nursing Home

Private

ALH Co., Ltd

VND 10.000.000

(USD435)

3

Dien Hong Nursing Home

Private

Phuong Dong Pharmacy – Kim Investment - Construction - Trading

JSC.,

VND 7,200,000 – 12,000,000

(USD315~USD520)

4

Orihime Nursing Home

Private

VIET Health Care JSC.,

VND 7,500,000 – 12,000,000

(USD325~USD520)

5

Tuyet Thai Aged Care Center

Private

Tuyet Thai Biomedical Technology Development JSC.,

VND 9,500,000 – 15,000,000

(USD415~USD650)

6

Ha Noi Nursing Center

Private

Vietfarm Co., Ltd.

VND 5,000,000 - 15,000,000

(USD220~USD650)

7

KAIGO Nursing Center

Private

HOUHOU International Development JSC.,

VND 8,000,000 – 12,000,000

(USD350~USD520)

8

Hanoi Nursing Center for Merited People

Government

Department of Labor, Invalids and Social Affairs

Free