Vietnam leads Southeast Asia in healthcare spending, report says

Vietnam has the highest healthcare expenditure to gross domestic product (GDP) rate among Southeast Asian countries at 6%, according to market research firm RedSeer.

While this is still below the global average of 9%, it is higher than other Southeast Asian countries, which have an average rate of 4.5%.

Image credit: RedSeer

Indonesia has the lowest rate, followed by the Philippines and Thailand. However, the rollout of universal healthcare coverage in these three countries will boost their numbers, said the report.

Southeast Asia’s e-health sector is also expected to grow tenfold by 2025, buoyed by Singapore and Indonesia’s strength in digital health innovation. These two countries already cover half of the region’s total market size.

For the market to hit this projected growth, however, it needs “supportive regulations and ability to monetize the e-health offerings,” said RedSeer partner Roshan Raj. Customers, he noted, should be incentivized enough that they will be willing to pay for such services.

Use cases for eDiagnostics have the highest share of the market size / Image credit: RedSeer

The region’s e-health sector has also seen significant investments in the past few years, added the report, with most of the money going to telemedicine. From 2017 to 2020, Southeast Asia experienced a 2.5x growth in the number of funding deals.

Healthcare funding growing in Southeast Asia / Image credit: RedSeer

Inefficient processes have hindered Southeast Asian patients from availing needed healthcare, as they are often forced to wait for hours when they need to consult with doctors in person.

Read: The key actors in Southeast Asia’s soaring healthtech space

“We can expect digital ecosystem players to fine-tune their e-health partnerships and offerings with a focus on the patient experience,” said the report.