Healthcare and Medical Equipment
Thailand
Overview
2004 2005 2006 (Estimated)
Total Market Size 396 553 687
Total Local Production 463 531 612
Total Exports* 396 469 562
Total Imports* 329 491 637
Imports from the U.S. 137 176 219
*The Thai Customs Department
The exchange rate is $1/THB36
The market for medical devices in Thailand is expected to grow 24 percent in 2006 and 20 percent in 2007. Thailand remains heavily dependent on imported medical devices. Imports dominate the market with a 89 percent share, and local production still concentrates on low technology and less sophisticated medical devices and accessories. Imports from the United States lead the import market with a 36 percent share and are expected to have an average growth of 25 percent in 2006 and 2007. Most major international manufacturers are well represented in the Thai market.
The market growth will derive mainly from the demands for health care facilities up grade and medical devices and accessories replacement. Hospitals, especially private hospitals, are trying to become a specialist in one or more of the medical specializations in order to attract more patients. Cardiac and ophthalmology are the two most famous specializations that most hospitals have identified themselves to be. A special international ward with foreign language speaking nurses and physicians to attract and treat international patients is another approach for hospitals to increase the customers. Replacements of the old devices and accessories to cutting edge medical equipment are inevitable.
Currently, there is not any new major hospital project both from the public and private sector. With the limited revenue faces by most public hospitals as a result of the introduction of the universal healthcare campaign by the Ministry of Public Health four years ago, investment in big-ticket medical devices is very limited. The coverage of the universal healthcare campaign to approximately 40 million populations in Thailand also affects the business of the private hospitals. They have found less and less patients visited and used their services. All major private hospitals chose to upgrade themselves and paid more attention to international patients, expatriates, and local residence of high-income level as their major revenue generating means.
Thailand relies on the import of medical devices, especially sophisticated, higher-end devices. Local production of medical devices in Thailand is limited to less sophisticated devices, due mainly to the limited number of qualified researchers and limited investment in R&D required to produce more sophisticated devices. Locally produced products include reagents, simple disposable test kits, disposable syringes, artificial legs and other orthopedic accessories, and other simple disposable items.
Public hospitals are still major users and buyers of medical devices and supplies in Thailand. They account for approximately 60 percent of total purchases. Private hospitals have approximately a 40 percent share of the demand. The Ministry of Public Health reported that in 2005 there were 978 public hospitals with a combined 105,600 beds. There were 356 private hospitals with a combined 35,900 beds.
Medical devices are normally imported by, and brought to the market through, agents and/or distributors. Generally, an agent is appointed for a limited period of time, with the agreement renewable at the end of each term. Normally, the agent will keep stocks of low-priced items only. Stocks of large or more costly items will be ordered on an as-needed basis. The agent's role not only covers marketing of the medical devices, but also customs clearing with the Thai Customs Department and taking necessary steps to arrange for product registration and import authorization from the Thai Food and Drug Administration (FDA). Thai FDA regulates importation of medical devices and accessories. Product registration with the Thai FDA is required prior to importation.
Use of local agents or distributors is highly recommended for marketing medical devices in Thailand. The agent provides immediate access to an established marketing network and in-depth knowledge about pertinent regulations. Buyers and end-users expect a local representative to handle after-sales service and stock spare parts. The agent also should be expected to develop close personal relationships with the buyers and end-users, an important factor in future procurement decisions.
Best Products/Services
Best prospects for medical devices from the U.S. include:
-Heart valves and artificial blood vessels.
-Disposable diagnostic test kits.
-Quick diagnostic testing devices.
-Respiratory devices and oxygen therapy.
-Rehabilitation equipment and accessories.
-Orthopaedic and Implant devices and accessories
-Minimum invasive surgical devices.
Neurosurgical and other surgical devices and accessories.
Opportunities
Post-acute healthcare service, which involves providing healthcare and nursing services for patients at their homes.
Construction of new and replacement hospitals.
Implementation of hospital information system (HIS) in selected hospitals and clinics in improving healthcare delivery.
Resources
Name: HospiMedica Thailand 2007 Date: September 12-14, 2007 Venue: Queen Sirikit National Convention Center, Bangkok, Thailand Profile: International Exhibition on Hospital, Diagnostics,
Pharmaceutical, Medical and Rehabilitation Equipment and Supplies.
Organizer: Messe Dusseldorf Asia Pte Ltd. 9 Temasek Blvd. #23-03 Suntec Tower Two Singapore 038989 Tel: 65-633-29620 Fax: 65-633-74633 E-mail: hospimedica-thai@mda.com.sg
Website: www.hospimedica-thaland.com
Important Website
Food and Drug Administration Ministry of Public Health
CS Bangkok Contact:
Mr. Nalin Phupoksakul – Commercial Specialist
U.S. Commercial Service American Embassy E-mail: nphupoks@mail.doc.gov