Watsons, a Hong Kong healthcare and beauty retailer, has officially opened its first street store in Ho Chi Minh City. This will be a new format with its first twelve stores all located in shopping malls.
Of note, Vietnam’s ageing population is a powerful driver for growth in the pharmacy retail market. By 2035, one-fifth of Vietnamese people will be over 60 years of age, according to the United Nations. This demographic shift is driving surging healthcare demand in Vietnam–in 2020, Vietnam had the second-highest healthcare expenditure, as a percentage of GDP, in Southeast Asia, and per capita spending is projected to rise by 9.2 percent annually until 2025, according to a 2020 American Chamber of Commerce in Vietnam–known locally as AmCham–report.
With this in mind, Vietnam’s pharmaceutical market offers significant growth opportunities, particularly for chain pharmacies, like Watsons. Currently, there are only 3,000 chain stores out of a total of 50,000 outlets. This market, however, is transitioning from traditional mom-and-pop shops to more modern pharmacy chains, on the back of Vietnamese consumers looking for more convenience, a wider product selection, and consistent quality according to the aforementioned AmCham report.
See also: How to Open a Retail Store in Vietnam: Ultimate Guide 2024