Vietnam Pharmaceuticals Market, By Drug Type, By Product Type, By Application, By Distribution Channel, By Region, Competition, Forecast and Opportunities, 2028

Vietnam pharmaceuticals market was valued at USD 6.98 billion in 2022 and is further anticipated to grow at a CAGR of 8.19% during the forecast period. Vietnam's growing population, increasing burden of chronic diseases, improving healthcare infrastructure, and supportive government policies are some of the factors influencing the growth of Vietnam pharmaceuticals market positively.

Vietnam is one of the fastest-growing economies in the world, with a population of more than 95 million people. Vietnam is a major market for pharmaceuticals and services. The country's population metric is changing due to an aging population and a growing middle class.

As the population ages, the need for health care and pharmaceuticals increases, and the increasing PPP enables the middle class to spend more money on health care, which can boost the pharmaceutical market. Vietnam, like many developing countries, is facing an increasing number of chronic diseases, such as diabetes, cardiovascular disease, cancer, and respiratory diseases.

The prevalence of chronic diseases is on the rise due to sedentary lifestyles, poor diet, and environmental factors. As a result, there is an increased need for pharmaceutical products to treat and manage these chronic diseases, driving market growth.

Vietnam has made considerable progress in improving its healthcare system. The country's investments in healthcare institutions, hospitals, clinics, and medical centers have increased access to healthcare services throughout the country. This improved access to healthcare has had a positive effect on the pharmaceutical market, as patients are now able to seek medical advice and get prescriptions more easily.

Vietnam is committed to the development of the healthcare sector and the pharmaceutical industry. The government has made several initiatives and policies which provide a roadmap for the growth and development of the pharmaceutical sector. The government has also taken steps to promote domestic drug production, decrease dependency on imports, and support research and development, which have created the right conditions for pharmaceutical companies to flourish.

Vietnam's advantageous geographical position and membership in global trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), have made it a desirable location for foreign pharmaceutical companies wishing to expand their operations in the Southeast Asian region. Foreign investment and cooperation have enabled the introduction of cutting-edge technologies, knowledge, and a wider selection of pharmaceutical products, thus increasing competition and stimulating market development.

As health education and awareness grow in Vietnam, the country is moving towards a healthier lifestyle. People are more open to preventive health care and early treatment, which increases the demand for preventive health care and wellness products.

Vietnam pharmaceuticals market has the potential to be one of the fastest growing in the world. However, there are several factors that impede the growth of the industry. Pricing and affordability are two of the most important factors that affect the demand for pharmaceutical products. The Vietnamese market is price sensitive. As a result, manufacturers must strike a balance between profitability and make sure that medicines are available to all parts of society.

Counterfeit and substandard medicines continue to be a major issue in Vietnam's pharmaceutical market. Not only do counterfeiting and low-quality products pose a threat to public health, but they also have a negative impact on consumer confidence in the pharmaceutical industry. Consumers are more suspicious of buying medicines, even if they are from reputable sources because they are worried about buying fake products.

Favorable regulatory reforms will be one of the main drivers of the pharmaceutical market growth in Vietnam. The government's efforts to simplify and clarify pharmaceutical rules will attract foreign investment and increase local production. Improved IPR enforcement will encourage multinational pharmaceutical companies to invest in R&D in Vietnam, which in turn will bring new innovative drugs to the market. Faster and more effective drug approval procedures will reduce the time taken by pharmaceutical products to reach the market, boosting competition and creating a more vibrant industry environment.

As Vietnam's economy continues to expand, the country's government's focus on improving healthcare infrastructure will continue to grow. As healthcare spending increases, the pharmaceutical market is expected to experience huge growth. As more resources are allocated to the healthcare sector, the ability to acquire and deliver essential medicines will improve, making them more accessible to patients across the nation. Furthermore, the expansion of health insurance coverage is expected to further improve the affordability of medicinal products, boosting demand for pharmaceuticals in both rural and urban areas.

The middle-class population in Vietnam is growing rapidly due to rising incomes and urbanization. As a result, the middle-class population will lead to an increase in healthcare spending and a higher demand for quality pharmaceutical products. The increasing purchasing power of the middle class will increase the demand for branded and novel medicines, prompting pharmaceutical companies to invest more in product development and marketing.

With a growing economy and a supportive regulatory environment, there is an impetus for both local and international pharmaceutical companies to invest in research and development activities. By focusing on R&D, companies can introduce novel drugs and therapies to address unmet medical needs in Vietnam and potentially export these products to other markets. Government incentives and public-private partnerships can further fuel research and innovation in the pharmaceutical sector.

Technology is revolutionizing the pharmaceutical sector. Precision medicine, personalized treatments, and the use of AI in drug development and clinical trials are just a few of the technological breakthroughs that will revolutionize the development and delivery of drugs to patients. Vietnamese pharmaceutical companies that adopt these technologies will be able to offer innovative therapies and improve patient outcomes.

Growing Prevalence of Chronic Diseases

Vietnam's chronic diseases are expected to have a significant impact on the pharmaceutical market growth in the next few years. Like many developing countries, Vietnam is going through a period of demographic and epidemiological transformation, with a growing burden of chronic diseases such as cardiovascular disease, diabetes, cancer, and respiratory diseases. The top 10 causes of death in Vietnam are stroke, ischemic heart disease, lung cancer, chronic obstructive pulmonary disease, Alzheimer's, diabetes, cirrhosis, road injuries, lower respiratory function, and tuberculosis. These require different pharmaceuticals for the treatment.

In Vietnam, strokes cause the most deaths, with an estimated 200,000 new cases reported each year. 50% of those cases are fatal, and 90% of survivors experience post-stroke effects, such as cognitive disorders, impaired mobility, and speaking or swallowing problems. Cardiovascular diseases (CVDs), which include strokes and ischemic heart disease, account for 31% of causes of death, equivalent to about 170,000 annual cases.

Pharmaceutical companies in the domestic market will focus on increasing their production capacity, introducing new and cutting-edge drugs, and partnering with international pharmaceutical companies to expand their product lines. Foreign pharmaceutical companies, on the other hand, will recognize the market potential in Vietnam and will invest in local production, distribution channels, and research partnerships. This synergy will further drive market growth.

Improving Vietnam's Healthcare Infrastructure

Vietnam's expanding healthcare infrastructure is a key factor driving the growth of the country's pharmaceuticals market over the next few years. As Vietnam's economy continues to grow at a rapid pace, there has been a growing emphasis on strengthening its healthcare system. Significant investments have been made to modernize medical facilities, expand access to healthcare, and improve the quality of care throughout the country. This increase in healthcare infrastructure development not only improves the health of the Vietnamese people but also prepares the ground for a growing pharmaceutical industry.

According to AmCham Vietnam, Vietnam's healthcare expenditures per capita are expected to grow 9.2 percent per year over 2009 - 2025, reaching USD 262 by 2025 (USD 26 billion of the total market), equivalent to 5.8% of the country's GDP.

The improved healthcare facilities have led to an increase in the demand for pharmaceuticals and medical supplies. As a result, local and foreign pharmaceutical companies can thrive. With improved access to medical care, the burden of chronic diseases can be managed more efficiently, thus increasing the need for a steady supply of drugs. With the growing awareness of healthcare and the increasing disposable income of the middle class, there is a growing demand for modern and creative pharmaceutical solutions. Consumer behavior has changed significantly, leading to the development of the pharmaceutical market in Vietnam.

Market Segmentation

The Vietnam pharmaceuticals market can be segmented by drug type, product type, application, distribution channel, and region. By drug type, the Vietnam pharmaceuticals market can be segmented into generic drugs and branded drugs. Based on product type, the Vietnam pharmaceuticals market is divided into prescription drugs and over-the-counter drugs. Based on application, the Vietnam pharmaceuticals market is divided into cardiovascular, musculoskeletal, oncology, anti-infective, metabolic disorder, and others. Based on distribution channels, the Vietnam pharmaceuticals market is divided into retail pharmacy, hospital pharmacy, and e-pharmacy. Based on regions, the Vietnam pharmaceuticals market is divided into Southern, Northern, and Central regions.

Market Players

Bayer Vietnam Ltd., DHG Pharmaceutical Joint Stock Company, Traphaco Joint Stock Company, Ha Tay Pharmaceutical Joint Stock Company, Domesco Medical Import Export Joint Stock Corporation (DOMESCO), OPC Pharmaceutical Joint Stock Company, Sanofi SA, Mekophar Chemical and Pharmaceutical JSC, Imexpharm Corporation, and PYMEPHARCO Joint Stock Company (STADA Arzneimittel AG) are some of the leading companies operating in the market.

Report Scope:

In this report, Vietnam pharmaceuticals market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:

Vietnam Pharmaceuticals Market, By Drug Type:

• Generic Drugs
• Branded Drugs

Vietnam Pharmaceuticals Market, By Product Type:

• Prescription Drugs
• Over-The-Counter Drugs

Vietnam Pharmaceuticals Market, By Application:

• Cardiovascular
• Metabolic Disorder
• Oncology
• Anti-infective
• Musculoskeletal
• Others

Vietnam Pharmaceuticals Market, By Distribution Channel:

• Retail Pharmacy
• Hospital Pharmacy
• E-Pharmacy

Vietnam Pharmaceuticals Market, By Region:

• Southern
• Northern
• Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in Vietnam pharmaceuticals market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).