BMI View: While the underdeveloped nature of its pharmaceutical and health care sector will bring about commercial benefits for foreign investors, competition from relatively low risk and higher rewards markets such as Vietnam mean s that Cambodia will remain low on investors '' priority list.
Headline Expenditure Projections
Pharmaceuticals: KHR910.8bn (USD228mn) in 2014 to KHR1,008.1bn (USD252mn) in 2015; +10.7% in local currency terms and US dollar terms. Forecast remains unchanged from previous quarter.
Healthcare: KHR5,119.8bn (USD1.3mn) in 2014 to KHR5,676.2bn (USD1.4mn) in 2015; +10.9% in local currency terms and US dollar terms. Forecast unchanged from previous quarter.
|f = BMI forecast. Source: National Sources, BMI|
|Pharmaceutical sales, USDbn||0.204||0.228||0.252||0.278||0.306||0.336||0.369|
|Pharmaceutical sales, % of GDP||1.34||1.36||1.38||1.38||1.38||1.37||1.36|
|Pharmaceutical sales, % of health expenditure||17.8||17.8||17.8||17.7||17.6||17.4||17.2|
|Health spending, USDbn||1.149||1.280||1.419||1.573||1.744||1.933||2.142|
Cambodia's Pharmaceutical Risk/Reward Index score for Q415 is 33.1 out of the maximum 100. The country scored below average for almost all indicators and sub-indicators including overall market expenditure, sector value growth and pensionable population. Consequently, with this low score, Cambodia ranks second-to-last out of the 19 key markets in Asia Pacific, ahead of Myanmar. Cambodia mainly suffers from low per capita consumption, stemming from low wages, the absence of a national health insurance scheme and the wider lack of government financing in the country, poor intellectual property protection and cumbersome bureaucracy.
Key Trends And Developments
In November 2015, Cambodia and Russia signed ten agreements covering various areas such as healthcare and nuclear energy. These agreements are expected to promote cooperation and bilateral ties.
In the same month, trade unions proposed to have a new committee to monitor the country's fund for injured workers, pension programs for civil servants and healthcare for the poor so as to improve coverage.
BMI Economic View
The conclusion of the Trans-Pacific Partnership (TPP) agreement will have mixed effects on the Cambodian economy. On the one hand, Vietnam's entry into the pact and the elimination of tariffs in its exports and textiles sectors will undermine Cambodia's export competitiveness in this area. On the other hand, Vietnam is likely to benefit in terms of low-tech manufacturing exports, providing Cambodia with an opportunity to piggyback on growth in areas such as auto parts assembly as ASEAN economic integration increases under the ASEAN Economic Community.
BMI Political View
The arrest warrant for opposition leader Sam Rainsy on November 13 confirms our view that the political truce known as the 'culture of dialogue' between the government and the opposition is over. This raises the prospect of renewed street demonstrations and poses possibly the largest risk to Cambodia's business environment since the aftermath of the 2013 election.
The Cambodia Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.
BMI's Cambodia Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Cambodia pharmaceutical and healthcare industry.
- Benchmark BMI's pharmaceutical and healthcare market forecasts for Cambodia, to test other views - a key input for successful budgeting and strategic business planning in the Cambodian pharmaceutical and healthcare market.
- Target business opportunities and risks in the Cambodian pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Cambodia.
- Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.
BMI Industry View
An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.
BMI Industry Forecast Scenario
Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:
- Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
- Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
- Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
- Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
- OTC Drug Market: OTC sales (USDbn & % of total sales).
- Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.
BMI’s Pharmaceuticals and Healthcare Risk Reward Index
BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape
A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.
Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.
The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.