Southeast Asia a growth market for Chinese medical devices

Southeast Asia has become an emerging market for Chinese medical devices.

A Deloitte China report shows that Southeast Asia, Europe and North America are currently the top destinations for such devices.

The US is still the preferred choice for many leading companies selling overseas, while Southeast Asia has become an entry point for some domestic start-ups.

Nanjing-based Novlead Biotech, which filled a market gap in China with research and development in nitric oxide gas treatment equipment, has picked Indonesia as its first overseas stop. Last year, its INOwill portable nitric oxide therapy device was exported to the Indonesian market.

Founded in 2018, the firm has promoted its devices to more than 600 major hospitals across China, benefiting tens of thousands of patients with pulmonary hypertension. After Indonesia, the firm is now eyeing the European and American markets.

According to CEO Mao Wen, the firm leads the world in its kind of nitric oxide gas treatment equipment, and a "global network" was why the firm was founded.

"We were looking at a global market at the very beginning, and why we haven't reached out to the US and Europe yet is because of their higher access thresholds," she said, adding that in emerging vertical fields there are more opportunities for Chinese medical device companies to gain status in the global landscape.

Stanley Dai, Deloitte China deputy CEO, said Chinese players are increasingly heading towards globalization, with the vigorous development of the domestic medical device market. "The core of 'Made in China' is changing along with the trend of Chinese enterprises going global, " he said.

Statistics by TF Securities showed that Chinese medical device companies reported a compound annual growth rate of 10.2 percent in exporting products between 2018 and 2022.

Statistics from the Customs showed that between 2019 and 2021, "Belt and Road" countries have gradually become major destinations beside the UK, Germany, Japan and other developed countries.

In 2023, Chinese medical device exports to ASEAN (Association of Southeast Asian Nations) reached over 32 billion yuan (US$4.4 billion), and countries such as Indonesia, Vietnam and Cambodia show great market potential.

One reason, according to Deloitte China, is that many Southeast Asian countries and China have entered into the Regional Comprehensive Economic Partnership (RCEP).

At the 89th China International Medical Equipment Fair that concluded in Shanghai on Sunday, Erwin Hermanto, chairman of the Indonesian Medical Device Manufacturers Association (ASPAKI), underlined the policy advantages for Chinese medical device companies to enter the ASEAN market.

He noted that medical devices registered in any one of the ten ASEAN countries are allowed to enter the other nine.