Market Research

Market Outlook

The Vietnam Pharmaceuticals Market size was valued at USD 7.60 billion in 2024 and is projected to reach USD 12.12 billion by 2030, growing at a CAGR of 7.96% throughout the forecast period.  Vietnam Pharmaceuticals Market is currently a major and rapidly growing sector in the Southeast Asian healthcare landscape. This market reflects an increasing demand for pharmaceuticals, driven by a huge ageing population, growing spending on healthcare, and increasing awareness of wellness and health. This market's valuation demonstrates the country's commitment to improving the health of its citizens and the significant investment made in its pharmaceutical infrastructure.

Looking towards the future Looking ahead, in the near future, Vietnam Pharmaceuticals Market is poised to see a significant expansion and projections suggest that it will grow to USD 12.12 billion by 2030. This remarkable growth trend is backed by an expected Compound Annual Growth Rate (CAGR) of 7.96 percent during the forecast time. The expected steady expansion is likely to be driven by ongoing initiatives of the government to improve access to healthcare as well as the rise in disposable incomes and the rising number of chronic illnesses and chronic diseases, all of which increase the demand for both new and generic drugs.

Research Objectives

• To study and forecast the size of the Vietnam Pharmaceuticals Market.
• To categorize and forecast the Vietnam Pharmaceuticals Market based on the type of drug, product type and application, distribution channel and the region.
• To identify the drivers and obstacles to the Vietnam Pharmaceuticals Market.
• To study the competitive landscape, including expansions or new product launches, mergers and acquisitions, etc. in the Vietnam Pharmaceuticals Market.
• To determine and analyze the profiles of the top companies operating in the Vietnam Pharmaceuticals Market.

Assumptions

• The market values are calculated using secondary and primary studies and could fluctuation.
• The forecast period for market analysis runs from 2024 until 2030.
• Stability in the economy and supportive government policies in Vietnam will continue to support market growth.
• The infrastructure for healthcare will continue to grow and modernize, enhancing accessibility to medicines.
• No major global health crisis or economic downturn are expected to cause significant disruption to market dynamics.

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Market Driver Analysis

The Vietnam Pharmaceuticals Market is experiencing significant growth thanks to various key drivers, including the nation's rapid growth and aging population. This is paired with a significant rise in healthcare spending. Vietnam's population, which exceeds 100 million, is characterized by a growing section of seniors who require a greater number of medications for age-related and chronic illnesses. Government initiatives, like universal health insurance scheme that now covers more than 90 percent of the population have significantly increased access to medical services and, in turn, pharmaceutical products. This increased coverage has resulted in an increase in healthcare expenditure per capita and has reportedly increased by more than 15% over the past five years. In addition, the growing rate of non-communicable diseases that include diabetes, cardiovascular diseases, and cancer, has created an ever-growing demand for a variety of therapeutic medications. In particular, the prevalence of diabetes in Vietnam has increased by an average of 25% over the last decade, which has led to the need for long-term medications. The improved diagnostic capabilities and increased awareness of health concerns in the general population can also lead to a higher use of drugs, pushing the market in the right direction.

Market Trends Analysis

Numerous prominent trends are influencing various important trends that are shaping Vietnam Pharmaceuticals Market, reflecting the global shifts as well as the unique local dynamic. One major trend is the growing emphasis on domestic production of pharmaceuticals and self-sufficiency. The Vietnamese government is actively encouraging local manufacturing to decrease dependence on imports, which has led to an increase in investments in local drug manufacturing facilities and R&D. It has led to local pharmaceutical manufacturers providing more than 50% of Vietnam's prescription drug requirements. Another important trend is the increasing acceptance of digital health and online pharmacies. The ease of using online platforms to purchase medications, along with the rising Internet penetration (over 70 percent of people) has driven the rise of e-pharmacies, particularly in cities. The trend was driven by the current worldwide health crises, which saw increasing numbers of consumers turning to online platforms to fulfill their prescription requirements. There is also increasing demand for top-quality special drugs, especially in the field of oncology and rare illnesses, caused by advances in medical research and a rise in the diagnostic capabilities. Pharmaceutical companies are compelled to introduce more advanced and complex therapies for the Vietnamese market.

Market Challenges Analysis

Despite its growth prospects however, the Vietnam Pharmaceuticals Market faces several important issues. One of the biggest concerns is the high dependence on imports of raw materials which exposes the country's manufacturing industry to disruptions in supply chains around the world and price fluctuations. This dependence can affect production costs as well as the affordability of drugs. Another issue is the rigors and often complicated regulatory environment that can cause delays in product registration and entry into the market for new medicines. The process of navigating these regulatory requirements requires considerable amount of time and effort from pharmaceutical companies. In addition enforcement of intellectual property rights is a major challenge, especially with regard to patent-protected drugs that can impede foreign investment in research and development in the country. The existence of a huge amount of generic drug producers can also increase the price competition, which puts pressure on margins of profit for both international and local players.

Segmentations

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

Vietnam Pharmaceuticals Market, By Distribution Channel:

• Retail Pharmacy
• Hospital Pharmacy
• E-Pharmacy

Regional Analysis

The Vietnam Pharmaceuticals Market exhibits varied regional dynamics, with key urban centers serving as major hubs for consumption and distribution. The Southern region, particularly Ho Chi Minh City, stands out as the largest market contributor, driven by its high population density, robust economic activity, and extensive network of hospitals and retail pharmacies. Ho Chi Minh City alone accounts for over 30% of the country's total pharmaceutical consumption, reflecting its status as a commercial and medical center. The Northern region, anchored by Hanoi, also represents a significant market share, benefiting from government healthcare initiatives and a concentration of major public hospitals. Hanoi's pharmaceutical market is characterized by a strong presence of both domestic and international drug manufacturers.

The Central and other regions, while smaller in market share, are experiencing steady growth due to improving healthcare infrastructure and increasing access to medical facilities in previously underserved areas. For instance, the number of community health centers in rural areas has increased by approximately 10% in the last three years, enhancing drug accessibility. Government efforts to decentralize healthcare services and invest in regional medical facilities are expected to further boost pharmaceutical demand across all provinces. This balanced development ensures that pharmaceutical products are increasingly available to a broader segment of the Vietnamese population, fostering more equitable market expansion across the country.

Analyst View on Industry and Growth

The analyst's view on the Vietnam Pharmaceuticals Market is overwhelmingly positive, anticipating sustained and robust growth throughout the forecast period. The market's expansion is fundamentally driven by strong demographic tailwinds, including a large and aging population, coupled with increasing healthcare spending and a rising burden of chronic diseases. The government's proactive stance on healthcare reform, including universal health insurance coverage and encouragement of domestic production, provides a stable and supportive environment for pharmaceutical companies. While challenges such as regulatory complexities and reliance on imported raw materials exist, the underlying demand and strategic initiatives are expected to outweigh these hurdles, positioning Vietnam as a highly attractive market for pharmaceutical investment and growth.

TechSci Research Opportunity Map

The TechSci Research Opportunity Map for the Vietnam Pharmaceuticals Market would visually delineate strategic areas for investment and expansion. It would highlight high-growth segments such as oncology and metabolic disorder applications, indicating where specialized drug development and market entry could yield significant returns. The map would also pinpoint emerging distribution channels like e-pharmacies as prime areas for digital transformation and market penetration. Furthermore, it would identify specific geographic regions, beyond the primary urban centers, that are ripe for infrastructure development and increased pharmaceutical access. The opportunity map would also suggest potential avenues for local manufacturing partnerships or technology transfers, aligning with the government's self-sufficiency goals. This comprehensive tool would guide stakeholders in identifying and capitalizing on the most lucrative and strategically aligned opportunities within Vietnam's dynamic pharmaceutical landscape.

Top Key Players in Vietnam Pharmaceuticals Market

1. Bayer Vietnam Ltd.

• CEO:   Global CEO of Bayer AG is Bill Anderson (as of 2023).
• Headquarters: Ho Chi Minh City, Vietnam. Global headquarters in Leverkusen, Germany.
• Establishment Date: It was established in Vietnam in 1994 as a wholly foreign-owned business.
• Pharmaceutical Development in Vietnam:
  • Bayer Vietnam operates in pharmaceuticals as well as consumer health as well as crop sciences, with a focus on prescription as well as OTC drugs.
  • OTC items include Bayer Aspirin, Aleve, Bepanthen, Redoxon, and Berocca which cover analgesics dermatology and vitamins.
  • Addresses Vietnam's needs for cardiovascular medicine given the high rate of disease.
  • The specifics of OTC production in Vietnam is not well-defined however, products are sold through retail pharmacies and pharmacies driven by Vietnam's expanding OTC market as well as self-medication trend.
  • Collaboration with local distributors of Vietnam's $10 billion market for pharmaceuticals (2020) which is expected to grow to $16.1 billion by 2026.

2. DHG Pharmaceutical Joint Stock Company

• CEO: Toshiyuki Ishii (General Director and Board Member, as of 2024).
• Headquarters: 288 Bis Nguyen Van Cu Street, An Hoa Ward, Ninh Kieu District, Can Tho City, Vietnam.
• Establishment Date: Established on the 2nd of September 1974 under the name the 2/9 Pharmaceutical Factory; equitized in 2004. It was listed on Ho Chi Minh Stock Exchange (HOSE) in 2006 (stock code DHG).
• Pharmaceutical Development in Vietnam:
  • Vietnam's largest pharmaceutical firm producing 398 different products, including 11 bioequivalence drugs that span antibiotics, analgesics cardiovascular, dermatology, respiratory and vitamins.
  • OTC items include analgesics (Hapacol) and vitamins and products derived from herbs (Naturenz, Spivital). The company invests in R&D (36 billion VND in 2013) with an in-house Research Center.
  • In 2020, the revenue totaled 3,755 billion VND ($183 million USD) with profits before tax of 821 billion VND. Total assets stood at 4,447 billion VND.
  • Collaborations include Vinamilk (2018) for functional food products as well as Pharmacity to supply ALFE Water Collagen.
  • Operates two production lines that are certified by Japan since the year 2018. They are supported by Taisho Pharmaceutical Co., Ltd.
  • The Vietnamese dominate the OTC market exporting to more than 20 countries.

3. Traphaco Joint Stock Company

• CEO:  The CEO's leadership is overseen by the Board of Directors.
• Headquarters: Lane 15, Ngoc Hoi Street, Hoang Liet Ward, Hoang Mai District, Hanoi City, Vietnam.
• The date of establishment was November 28, 1972 as the Drug Production Team of the Railway Medical Company; equitized in 2000. It was listed on HOSE in 2008 (stock code: TRA).
• Pharmaceutical Development in Vietnam:
  • Specializes in traditional and pharmaceutical medicines as well as OTC products such as eye medications as well as vitamins and anti-inflammatory medications.
  • Exclusive distributor of Sandoz (Novartis Group) products since the year 2015, and has been dominating Vietnam's OTC market.
  • In 2020, the consolidated profit was the sum of 203 billion VND ($8.8 million USD) The drug sales were $25.2 million USD, an increase of 7.2 percent over the previous year.
  • Two subsidiaries, two factories, which serve more than 27,000 clients and 40 representatives across the 63 provinces. Exports to Russia, Ukraine, Belgium, Switzerland, and Africa.
  • Utilizes 65% of the country's raw materials. The revenue for 2023 was projected as 2,600 billion VND (up 8percent year-on-year).
  • OTC items include preventive medications however economic downturns increase consumers to look for alternatives that are less expensive.

4. Pharmaceutical Corporation Ha Tay

• Headquarters: No. 10A, Quang Trung Street, Ha Dong District, Hanoi, Vietnam.
• Established in 1965 under the name Ha Tay Pharmaceutical Enterprise; it was merged into Ha Son Binh Pharmaceutical Complex in 1985; it became an joint stock company in the year 2000.
• Pharmaceutical Development in Vietnam:
  • Produces curative medicines, chemicals medical materials, and medical equipment, which includes antibiotics, liver supplements, eye drops, tonics and anti-inflammatory medications.
  • It is likely that they produce OTC products, such as analgesics or eye drops, however the specifics aren't clear.
  • Helps Vietnam's $7.6 billion pharmaceutical market (2023) with a focus on generics to satisfy 53% of demand from the domestic market.
  • Accoladed for more than 50 years of manufacturing excellence However, there are there are no particular R&D or export information is available.

5. Domesco Medical Import Export Joint Stock Corporation (DOMESCO)

• Headquarters: No. 66, Highway 30, My Phu Ward, Cao Lanh City, Dong Thap Province, Vietnam.
• The company was established on the 19th of May, 1989. It was transformed into a joint stock corporation in 2003. It was listed on HOSE in 2006 (stock code: DMC).
• Pharmaceutical Development in Vietnam:
  • The focus is on R&D production marketing, trading and distribution of functional foods, pharmaceuticals and herbal drinks.
  • OTC products are likely to include analgesics and vitamins and herbal-based medications.
  • In 2020, the gross profits were 77.3 billion VND. This was a decrease of 19 percent from the Q1 of 2020. The first quarter of 2021 net income was 654 billion VND which was down by 4 percent, and net profit of 66.6 billion VND, which is down 39 percent.
  • Exports to Asia, Africa, and Latin America with a nationwide distribution network.
  • Aids Vietnam's generics industry through GMP-compliant facilities.

6. OPC Pharmaceutical Joint Stock Company

• Headquarters: No. 1017, Hong Bang Street, Ward 12, District 6, Ho Chi Minh City, Vietnam.
• Date of Establishment: Established on the 24th of October, 1977 in the form of TW 26 Pharmaceutical Enterprise. It was transformed into an joint stock company in 2004. It was listed on HOSE in 2007 (stock code: OPC).
• Pharmaceutical Development in Vietnam:
  • Specializes in herbal medicines, pharmaceuticals as well as OTC products, such as nasal sprays, eye drops and herbal remedies.
  • Two factories operate under GMP-WHO standards. They focus on traditional medicine as well as OTC products such as digestive aids and cough syrups.
  • In 2020, the revenue was around 1,200 billion VND, including exports going to Southeast Asia.
  • The company invests in R&D for herbal and OTC products, taking advantage of Vietnam's tradition of traditional medicine.
  • Helps Vietnam's OTC market that is driven by self-medication trend.

7. Sanofi Vietnam

• CEO: Global CEO of Sanofi is Paul Hudson (as of 2025).
• Headquarters: Ho Chi Minh City, Vietnam. Headquarters for the world located in Paris, France.
• Established Date: Sanofi globally formed in 2004 through the Sanofi Synthelabo and Aventis merger. Vietnam operations are likely to have begun post-1990s.
• Pharmaceutical Development in Vietnam:
  • A major player in Vietnam with over 150 categories of products, which include prescription medications (diabetes cardiovascular, diabetes vaccines) as well as OTC products such as Allegra, Dulcolax, and Buscopan for a variety of allergies, digestive health as well as pain relief.
  • OTC products are sold through pharmacies and supported by Vietnam's expanding OTC market.
  • The company invests in local partnerships as well as educational campaigns to improve access to healthcare.
  • There are no specific OTC details on development in Vietnam However, it leverages the global portfolios in order to cater for local demands.

8. Mekophar Chemical and Pharmaceutical JSC

• Headquarters: 297/5 Ly Thuong Kiet Street, Ward 15, District 11, Ho Chi Minh City, Vietnam.
• Establishment Date: Established in 1972 under the name of the Center for Chemical and Pharmaceutical Enterprises and later transformed into a joint-stock company in 2004.
• Pharmaceutical Development in Vietnam:
  • Produces generics, pharmaceuticals as well as OTC products, such as antibiotics, analgesics, and vitamins.
  • Operates GMP-compliant facilities and focuses on low-cost medicines.
  • OTC products comprise pain relievers as well as digestive aids, although specific information is not available.
  • Helps Vietnam's generics and OTC markets, which helps reduce dependence on imports.

9. Imexpharm Pharmaceutical Joint Stock Company

• Headquarters: No. 4, 30/4 Street, Ward 2, Cao Lanh City, Dong Thap Province, Vietnam.
• Established Date: Founded in 1977. It was acquired by equity in 2001. The company was listed on HOSE in 2006 (stock code:"IMP").
• Pharmaceutical Development in Vietnam:
  • Specializes in analgesics, antibiotics as well as OTC products such as respiratory medications and pain relievers.
  • Three factories are operated by the company, which adhere to WHO-GMP and EU-GMP standards that focus on generics as well as OTC drugs.
  • In 2020, the revenue was estimated at 1,500 billion VND. This included exports going to Southeast Asia and Africa.
  • invests in R&D for generics and OTC products, assisting Vietnam's self-medication movement.

10. Pymepharco Joint Stock Company

• Headquarters: 166-170 Nguyen Hue Street, Tuy Hoa City, Phu Yen Province, Vietnam.
• Established Date: Founded in 1969. The company was subsequently acquired in 2001. The company was listed on HOSE in 2017 (stock code: PME).
• Pharmaceutical Development in Vietnam:
  • Creates antibiotics, generics and OTC products such as analgesics and vitamins.
  • Operates EU-GMP compliant facilities, focusing on high-quality generics as well as OTC medicine.
  • In 2020, the revenue was estimated at 2 billion VND and exports going to Asia as well as Africa.
  • Aids in the Vietnam's OTC market, which helps to boost local production and distribution.

Future Outlook  

1. Increased Investment in Domestic Manufacturing: Government incentives and private sector investment will boost local drug production capacity.
2. Growth of Biopharmaceuticals: Rising demand for complex biological drugs and biosimilars will drive market expansion in this segment.
3. Digital Transformation in Healthcare: Continued integration of e-health platforms, telemedicine, and e-pharmacies for improved access and efficiency.
4. Focus on Specialty Drugs: Higher demand for drugs treating chronic and complex diseases like cancer, diabetes, and cardiovascular conditions.
5. Enhanced Regulatory Framework: Ongoing efforts to streamline drug registration, ensure quality control, and strengthen intellectual property rights.
6. Expansion of Health Insurance Coverage: Broader reach of health insurance schemes will increase affordability and access to medicines for more citizens.
7. Rising Health Awareness: Public health campaigns will continue to educate the population, leading to increased demand for preventive and therapeutic drugs.
8. Foreign Direct Investment (FDI) Influx: Vietnam's attractive market potential will draw more international pharmaceutical companies and investment.
9. Development of Cold Chain Logistics: Improvement in infrastructure for temperature-sensitive drugs, crucial for advanced pharmaceuticals.
10. Research and Development (R&D) Emphasis: Greater focus on local R&D capabilities, potentially through collaborations with international partners.

FAQs Related to Industry

Que - What was the market size of the Vietnam Pharmaceuticals Market in 2024?

Ans - The Vietnam Pharmaceuticals Market was valued at USD 7.60 billion in 2024.

Que - Which drug type segment is expected to lead the Vietnam Pharmaceuticals Market?

Ans - Generic drugs are expected to continue leading the market due to their affordability and widespread accessibility.

Que - Which application segment shows significant growth potential in the Vietnam Pharmaceuticals Market?

Ans - The Oncology and Metabolic Disorder application segments are expected to show significant growth potential due to the rising prevalence of these diseases.

Que - Which distribution channel is rapidly expanding in the Vietnam Pharmaceuticals Market?

Ans - E-Pharmacy is rapidly expanding, driven by increasing digital literacy and convenience for consumers.

Que - What are the primary drivers for the growth of the Vietnam Pharmaceuticals Market?

Ans - The primary drivers include a large and aging population, increasing healthcare expenditure, and a rising prevalence of non-communicable diseases.

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