Medical Device Distributor Search in the Other Asian Countries

While Hong Kong’s market itself is relatively small, Hong Kong is a leader in the Asian healthcare markets. Medical products used in Hong Kong’s hospitals have an increasing influence on government procurement choices in China.

Hong Kong relies significantly on medical equipment imports. According to the U.S. government, 25% of Hong Kong’s medical device market is made up of U.S. imports. Many medical distributors in Hong Kong are well-connected to the Macau market as well, providing further opportunities for foreign medical device companies. Particular opportunities are available in Hong Kong for surgical devices, hospital disposables, and laboratory equipment.

There are several high quality distributors in Hong Kong; however, they may not be accepting new clients. Thus, it may take time to find a qualified medical device distribution partner in Hong Kong. In addition, it is essential to find a distributor who has strong links to Hong Kong’s Hospital Authority (HA), as the HA plays a key role in medical product procurement.

Although the situation is improving, distribution is a significant challenge in Indonesia. As the country is composed of more than 6,000 islands, infrastructure and logistics are often deficient, especially far away from the capital of Jakarta. In addition, the variety of local players in the healthcare industry can be confusing. Finding a good distributor to partner with is important in any country, but it is absolutely essential in Indonesia.

Foreign medical device companies will likely need to pick a number of regional or even local distributors to more effectively cover the entire country.

Locating the right Korean medical distributor with product area expertise and connections with key buyers can be challenging, largely due to Korea’s unique business culture and language.

Since the entire country is about the same size as the state of Virginia in the U.S., granting an exclusive contract to a single qualified Korean medical device distributor may be effective. However, many medical device distributors in the capitol of Seoul utilize sub-dealers in the smaller Korean cities. The greater Seoul medical market makes up about one-half of the overall Korean medical market.

Keep in mind that relationships of trust are key in Korea, and meeting and signing up distributors at trade shows (where there is no established relationship) may lead to problems down the road. Business is done through relationships, including extended families, high school or college classmates, and introductions via other Korean contacts that you know well.

Distribution can be challenging in Malaysia, as the country is separated into two halves by the South China Sea and also includes a variety of small islands. This makes finding the right distributor for your medical products especially important.

There are four major distribution channels in Malaysia — the largest is government run hospitals, followed by private clinics, private hospitals, and pharmacies. While domestic Malaysian medical device companies produce many basic devices and equipment (i.e. rubber gloves), the high end of Malaysia’s medical device market is driven by imports from foreign device companies. In particular, there are exceptional growth opportunities in Malaysia for orthopedic implants, prosthetic devices, cardio implants, etc.

The domestic medical device industry in the Philippines is underdeveloped, mostly producing low cost incubators, sterilizers, medical tape, gloves and syringes. This means that the device market there is heavily reliant on foreign imports for high-end devices — especially diagnostic imaging, medical consumables, etc.

The process of finding the best medical device distribution partner for your company in the Philippines can take time. The number of good medical device distributors is very limited. Due to the fragmentation of the Philippine archipelago, there are few truly national medical device distributors. Most distributors are based in Manila, so reaching areas far away from the capital can run into issues of logistics, infrastructure, and cost. Hospitals often buy devices from dealers they know and trust; thus, relationships are very important when choosing a device distributor in the Philippines.

Singapore is known as a significant medical and healthcare hub for Southeast Asia. The country provides an attractive market for foreign medical products companies, boasting robust IP laws, a good regulatory environment, strong government support of the healthcare industry and a strong logistics and infrastructure network. Approximately 90% of the country’s medical devices are supplied by foreign companies.

Leading global distributors have built regional headquarters or hub operations in Singapore. There are many high-quality medical device distributors in Singapore, but it is crucial to find the best partner for your company.

Employing the best Taiwanese medical device distributor is crucial for any medical device manufacturer selling products in the Taiwanese market. Imports account for approximately 75% of the medical device market — and U.S. companies provide 35% of these imports, especially in the category of high-end devices.

Taiwan has approximately 40,000 local distributors with relationships with healthcare facilities. The government procurement agency is usually in charge of large equipment purchases for public hospitals. Private hospitals often have on-going relationships with local distributors.

Lifestyle diseases are a growing problem for Taiwan, with rising demand for cancer, diabetes and cardiovascular treatment devices. With a rapidly aging Taiwanese population, there are particular opportunities for foreign medical device companies in geriatric and diagnostic products. Other areas of growth include dental implants and plastic surgery supplies, as these treatments are growing in popularity and are paid for out-of-pocket.

Almost 90% of Thailand’s medical device market consists of imports, while locally produced devices tend to be of limited sophistication — such as disposable syringes, disposable test kits and latex gloves. Imports from the U.S. make up almost 25% of the total device import market and are growing rapidly. Particular opportunities exist for orthopedic implants, heart valves, respiratory devices, minimally invasive surgical devices and neurosurgical devices.

The medical device distribution system in Thailand is made up of small to mid-sized local distributors, sometimes family owned. Foreign medical device companies that are looking for a Thai distribution partner must look out for some of these distributors who lack professional skills in marketing, sales and customer support. Furthermore, it is crucial to choose a Thai distributor who has good professional and personal relationships with the important stakeholders in both public and private hospitals. Choosing the right distributor is key to growing your sales in the Thai medical device market.

An estimated 95% of Vietnam’s medical device market is imported, while locally-produced devices are limited in both sophistication and value. Such domestically made devices include products such as scalpels, disposable supplies and hospital beds. Because the domestic market is unable to meet the demands of the Vietnamese healthcare system, the government promotes medical equipment imports, assigning such products low import duties. Particular opportunities for foreign medical device companies exist in diagnostic imaging equipment, patient monitoring equipment, sterilization equipment, orthopedic implants, emergency equipment, etc.

There are only a few national level device distributors in Vietnam. However, the majority of Vietnamese medical device distributors are localized. The largest medical device purchasers are government funded hospitals, making up about 70% of the market. Foreign-owned clinics and hospitals are the second largest device purchasers, followed by local private hospitals and educational/research institutions.

For devices that exceed $5,700, public hospital purchases must be made through provincial or national bidding. Since foreign companies cannot submit a tender on their own, having a local distribution partner with strong technical skills and solid relationships with hospitals, healthcare facilities and the Ministry of Health is important for the success of your device in Vietnam.