Orthopaedics see growth in Vietnam as value segment players thrive
23-Jan-14, Global Growth Markets analyst view
A large proportion of the medical device market in Vietnam is supplied by imports and the sector is growing rapidly. Japan, the US, Singapore and China are leading suppliers, accounting for 50% of imports. Local production is limited to basic items such as syringes and hospital beds. In this environment Chinese companies such as Trauson are thriving in the Vietnamese market.
Perhaps not surprising if we consider efforts such as that by the Da Nang Orthopaedic hospital, which has undergone extensive renovation, as a result of which the hospital has increased capacity from 780 operations per year to 4,000. With Vietnam Holdings (VNH) Foundation budgeting USD275,000 for the renovations, companies such as Belimed AG, Karl Storz and Maquet also made significant price concessions, allowing the VNH Foundation to maximize the impact of its investment..
At its Marketing and Sales Conference held on 17-18 January 2014 in Vietnam, Trauson applauded the efforts of its sales team in 2013, which, lead by Trauson General Manager Wang Guoai, exceeded its target in the company’s first year under Stryker ownership. CEO Brent Scott congratulated the team, and also established targets and development strategies for 2014, with a strong focus on impoved marketing to take the company’s performance to the next level.
Stryker said it made USD9 billion in net sales in 2013, up 4.2% from nearly USD8.7 billion in 2012. However earnings were down 23% to USD1 billion thanks to its USD764 million acquisition of Chinese orthopaedics firm Trauson, and the USD1.7 billion purchase of robot-assisted surgery player Mako. Costs relating to product recalls also hampered earnings significantly. The Trauson acquisition is viewed by the company as a good long term contributor to top line performance.