Vietnam Pharmaceuticals Market: Strategic Insights and Competitive Dynamics Through 2030

The Vietnam Pharmaceuticals Market was valued at USD 7.60 Billion in 2024 and is expected to reach USD 12.12 Billion by 2030, registering a CAGR of 7.96% during the forecast period. The market is driven by increasing healthcare expenditure, a growing aging population, and rising demand for high-quality medicines. Government initiatives to boost domestic production, such as the ‘National Strategy for Pharmaceutical Industry Development,’ are strengthening the market landscape. Additionally, Vietnam’s expanding middle class and growing awareness of healthcare are fueling demand for both generic and branded drugs. The market also benefits from foreign investments and partnerships aimed at enhancing local pharmaceutical capabilities. However, regulatory challenges and counterfeit drug concerns pose potential restraints.

Market Driver Analysis

Rising Healthcare Expenditure: Vietnam’s healthcare spending is on a steady rise, expected to reach 6% of the country’s GDP by 2030. The Vietnamese government has been actively focusing on universal healthcare coverage, increasing funding for public hospitals, and enhancing the infrastructure of healthcare facilities. Expanding national health insurance schemes and improving access to essential medicines are key strategies contributing to this growth. The rising healthcare expenditure directly impacts the pharmaceutical sector by driving demand for innovative drugs, medical devices, and improved treatment options.
Aging Population: Vietnam’s demographic shift towards an aging population is a significant factor fueling pharmaceutical market growth. By 2050, the population aged 60 and above is projected to reach 22 million, making up nearly 20% of the total population. The increasing number of elderly individuals contributes to a surge in demand for medications targeting chronic illnesses such as hypertension, diabetes, arthritis, and neurodegenerative diseases. The government is also implementing elderly care programs and promoting preventive healthcare to manage the growing burden of age-related diseases effectively.

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Increasing Burden of Non-Communicable Diseases (NCDs): Non-communicable diseases (NCDs) have become a major health concern in Vietnam, accounting for approximately 77% of all deaths. Cardiovascular diseases alone contribute to 31% of mortality rates, while diabetes cases are projected to rise by 50% by 2045. Lifestyle changes, urbanization, and dietary habits are key contributors to the rise of NCDs. Consequently, the demand for cardiovascular drugs, anti-diabetic medications, and other chronic disease treatments has significantly increased. The government is actively promoting awareness campaigns, implementing early detection programs, and expanding public healthcare services to address this growing issue.
Government Support and Policies: The Vietnamese government is making continuous efforts to enhance pharmaceutical self-sufficiency through various policies and incentives. The 'National Strategy for Pharmaceutical Industry Development' aims to strengthen domestic drug production and reduce dependence on imported medicines. Tax incentives, subsidies for local manufacturers, and relaxed regulations for pharmaceutical investments are further encouraging growth in the sector. Additionally, policies promoting generic drug production and facilitating faster drug approvals are helping improve access to affordable healthcare solutions.
Growing Foreign Investments: Vietnam’s pharmaceutical sector has attracted significant foreign direct investments (FDI), with multinational companies establishing manufacturing plants and research facilities within the country. Global pharmaceutical giants such as Sanofi, Bayer, and Novartis are actively engaging in joint ventures and partnerships with local companies to enhance production capacity. The growing foreign investments are not only strengthening the supply chain but also improving Vietnam’s pharmaceutical standards through technology transfer, research collaborations, and workforce training. This trend is expected to continue as Vietnam emerges as a key player in the global pharmaceutical industry.
Expansion of E-Pharmacy Platforms: The rapid digital transformation in Vietnam is revolutionizing the pharmaceutical industry through the expansion of e-pharmacy platforms. Internet penetration in Vietnam is projected to reach 85% by 2030, leading to an increased adoption of online pharmacies. E-pharmacies provide greater accessibility to medicines, especially in remote areas, and offer convenience to urban consumers seeking over-the-counter and prescription medications online. Government regulations supporting telemedicine and digital healthcare services are further accelerating the growth of e-pharmacy platforms, making them a key driver of market expansion.

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Market Segmentation

By Drug Type:
- Generic Drugs
- Branded Drugs
By Product Type:
- Prescription Drugs
- Over-The-Counter Drugs
By Application:
- Cardiovascular
- Musculoskeletal
- Oncology
- Anti-infective
- Metabolic Disorder
- Others
By Distribution Channel:
- Retail Pharmacy
- Hospital Pharmacy
- E-Pharmacy

Regional Analysis

The Vietnam Pharmaceuticals Market demonstrates regional variations based on healthcare infrastructure, population demographics, and economic development.

Northern Vietnam: Home to Hanoi, the region has strong pharmaceutical research capabilities and major production hubs. The presence of pharmaceutical firms such as Traphaco and Pharmaceutical Corporation Ha Tay boosts the region’s growth. Hospital pharmacies dominate the distribution network.
Central Vietnam: A smaller pharmaceutical market, Central Vietnam benefits from growing government investment in healthcare infrastructure, with a focus on improving rural healthcare accessibility. Rising cases of infectious diseases are boosting demand for anti-infective drugs.
Southern Vietnam: Ho Chi Minh City is a key market for pharmaceuticals, housing major pharmaceutical firms and manufacturing units. The region has the highest concentration of retail and e-pharmacies, driven by urbanization and consumer preference for convenient medicine access.
Rural Areas: Limited access to healthcare facilities and medicines remains a challenge, but government initiatives aim to improve accessibility through telemedicine and mobile health services.

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Primary Catalysts and Hindrances

Catalysts: Growing demand for chronic disease treatments, favorable government policies, foreign investments, and the expansion of online pharmacies. Hindrances: Regulatory hurdles, counterfeit medicines, dependence on imported raw materials, and high R&D costs.

Key Player Analysis

The Vietnam Pharmaceuticals Market is highly competitive, with domestic and international players competing for market share.

Bayer Vietnam Ltd.: A leading multinational with a strong presence in cardiovascular and metabolic disorder drugs.
DHG Pharmaceutical Joint Stock Company: Vietnam’s largest pharmaceutical company, known for generic and OTC drugs.
Traphaco Joint Stock Company: A leader in traditional medicine-based pharmaceuticals.
Sanofi Vietnam: A dominant foreign player focusing on prescription medicines and vaccines.
Domesco Medical Import Export Joint Stock Corporation: A key exporter and manufacturer of high-quality generic drugs.
Pymepharco Joint Stock Company: Specializing in antibiotics and cardiovascular treatments, with European-standard manufacturing facilities.

Future Outlook

Expansion of domestic pharmaceutical production to reduce dependence on imports.
Increased foreign direct investments and partnerships in the sector.
Adoption of digital healthcare solutions and online pharmacies to improve medicine accessibility.
Rising demand for oncology and cardiovascular drugs due to increasing non-communicable disease prevalence.
Implementation of stricter regulations to curb counterfeit drugs and enhance drug safety.
Growth in biologics and biosimilars as Vietnam advances in pharmaceutical R&D.
Expansion of hospital and retail pharmacy chains to cater to increasing demand.
Enhanced government initiatives to support innovation and pharmaceutical exports.
Greater emphasis on affordable healthcare and insurance coverage to boost pharmaceutical spending.
Rising clinical trials and research collaborations with international pharmaceutical firms.