Vietnam’s pharmaceuticals industry is poised for significant growth, driven by rising healthcare demands, increasing government support, and a growing middle class with heightened health awareness. The country has made substantial investments in its healthcare infrastructure, including the establishment of modern hospitals and clinics, which, in turn, boosts the demand for pharmaceutical products. As the population ages and chronic diseases become more prevalent, the need for effective medications and healthcare solutions is more critical than ever.
The Vietnamese government has been actively promoting the local pharmaceutical sector through favourable policies aimed at enhancing production capabilities and encouraging research and development.
Initiatives such as the National Drug Policy emphasise the importance of manufacturing in Vietnam to reduce dependence on imported medicines. This strategy is further supported by partnerships between local companies and foreign pharmaceutical firms, facilitating technology transfer and innovation in drug development.
In addition, the rise of health-conscious consumers has also spurred interest in dietary supplements and herbal medicines, further diversifying the market. As regulatory frameworks evolve to accommodate new types of products, the industry is expected to attract more investment and collaboration, positioning Vietnam as a competitive player in the regional pharmaceuticals landscape.
Vietnam’s pharmaceuticals industry in numbers
In 2024, Vietnam’s pharmaceuticals market is projected to reach revenue of US$2.40 billion. Leading this sector is the oncology drugs market, which is anticipated to account for US$365.5 million worth of the total revenue.
Looking ahead, the market is expected to experience a steady annual growth rate of 4.25 percent from 2024 to 2029, ultimately reaching US$2.96 billion by 2029. This growth underscores the increasing demand for pharmaceutical products and advancements in healthcare within the country, according to data collated by Statista.
Pharmaceutical materials imports, Vietnam, August 2024
| July | August | Change | YTD | |
| China | 29,240,026 | 28,664,787 | -1.97% | 221,414,162 |
| India | 6,863,259 | 6,960,828 | 1.42% | 55,763,510 |
| Spain | 1,822,642 | 1,591,336 | -12.69% | 10,294,026 |
| Germany | 645,849 | 549,185 | -14.97% | 3,146,762 |
| Italy | 1,378,081 | 356,503 | -74.13% | 7,031,055 |
| Singapore | 161,362 | 263,666 | 63.40% | 1,621,456 |
| Switzerland | 339,007 | 259,210 | -23.54% | 2,589,419 |
| Thailand | 0 | 176,100 | 0.00% | 1,137,781 |
| South Korea | 344,436 | 156,076 | -54.69% | 2,035,029 |
| UK | 207,368 | 110,442 | -46.74% | 1,343,813 |
| France | 121,226 | 42,630 | -64.83% | 954,374 |
| Other | 1,296,849 | 617,811 | -52.36% | 8,367,178 |
| Total | 42,420,105 | 39,748,574 | -6.30% | 315,698,565 |
Pharmaceutical product imports, Vietnam, August 2024
| July | August | Change | YTD | |
| Germany | 32,354,117 | 47,226,513 | 45.97% | 241,873,589 |
| USA | 51,772,053 | 38,149,192 | -26.31% | 294,307,695 |
| France | 42,411,235 | 37,120,293 | -12.48% | 365,207,743 |
| India | 31,928,099 | 23,997,249 | -24.84% | 220,783,420 |
| Belgium | 7,507,455 | 21,925,452 | 192.05% | 117,439,752 |
| Italy | 26,913,891 | 20,164,634 | -25.08% | 189,281,872 |
| Austria | 11,761,008 | 16,849,616 | 43.27% | 94,446,461 |
| South Korea | 17,992,086 | 16,773,932 | -6.77% | 126,498,593 |
| Ireland | 16,113,060 | 15,076,345 | -6.43% | 133,165,069 |
| Sweden | 20,928,732 | 11,914,419 | -43.07% | 85,548,695 |
| Other | 33,634,281 | 25,740,020 | -23.47% | 225,226,233 |
| Total | 392,381,241 | 349,628,251 | -10.90% | 2,745,843,413 |
Source: Vietnam Imports Tracker
Key players in Vietnam’s pharmaceuticals industry
These key players contribute significantly to the growth and development of Vietnam’s pharmaceuticals industry, fostering innovation, enhancing healthcare access, and ensuring the availability of essential medications for the population. As the industry continues to evolve, these companies will play a crucial role in shaping the future of healthcare in Vietnam.
Vinamilk: While primarily recognized for its dairy products, Vinamilk has ventured into the pharmaceutical sector, particularly in nutritional supplements and health-related products. This diversification leverages the company’s extensive distribution network and brand recognition, positioning it as a significant player in the health and wellness segment.
Traphaco: Traphaco is a prominent name in Vietnam’s pharmaceutical landscape, specialising in traditional herbal medicines and modern pharmaceuticals. With a strong focus on research and development, Traphaco emphasises the integration of traditional medicine with contemporary healthcare practices. The company has developed a wide range of products, including herbal supplements and prescription medications, making it a leader in the herbal pharmaceuticals market.
DHG Pharmaceutical: One of the largest pharmaceutical companies in Vietnam, DHG Pharmaceutical has a comprehensive portfolio that includes both prescription and over-the-counter medications. The company is recognized for its quality manufacturing practices and innovative product development. DHG has made significant investments in research and development to expand its therapeutic offerings, particularly in areas such as cardiovascular health, anti-infectives, and gastrointestinal treatments.
Sofgen Pharmaceuticals: Sofgen is committed to producing high-quality pharmaceuticals, with a focus on areas like antibiotics and cardiovascular medications. The company emphasises compliance with international standards in its manufacturing processes and has established partnerships with various healthcare organisations to enhance its market reach.
International Pharmaceutical Companies: Major global players, including Pfizer, Novartis, and Merck, have established operations in Vietnam, significantly impacting the local market. These companies bring innovative products, advanced technologies, and global expertise, contributing to the growth of the industry. Their collaborations with local firms facilitate knowledge transfer and improve access to essential medicines.
Hapaco: Specialising in generic medications, Hapaco is a key player in Vietnam’s pharmaceutical market. The company focuses on producing affordable healthcare solutions that meet local needs, ensuring a wide range of medications is accessible to the population. Hapaco’s commitment to quality and compliance with international regulations has strengthened its position in the market.
Medi-Pharma: This company specialises in the production and distribution of a variety of medical products, including both prescription and over-the-counter drugs. Medi-Pharma is known for its quality assurance practices and has built a reputation for reliability in the healthcare sector. The company continuously seeks to expand its product range to meet the evolving needs of consumers.
Consumer behaviour in Vietnam’s pharmaceuticals industry
Consumer behaviour in Vietnam’s pharmaceuticals industry is influenced by various factors, reflecting the changing dynamics of health awareness, accessibility, and cultural preferences. Here are some key trends:
Increased Health Awareness: As access to information improves and healthcare education expands, Vietnamese consumers are becoming more health-conscious. This growing awareness has led to increased demand for pharmaceuticals, especially in areas such as chronic disease management, preventative care, and wellness products. Consumers are more likely to seek out medications and supplements that align with their health goals.
Preference for Local Products: Many consumers in Vietnam show a preference for locally produced pharmaceuticals, often believing that these products are more tailored to their specific health needs and cultural contexts. Local companies that emphasise quality and affordability are gaining traction, especially among price-sensitive consumers.
Digital Influence: The rise of digital technology is reshaping consumer behaviour in the pharmaceutical sector. More consumers are using online platforms to research medications, read reviews, and compare prices before making purchases. E-commerce is increasingly popular for buying over-the-counter medications and health products, making it easier for consumers to access a wider range of options.
Trust and Reputation: Trust in pharmaceutical brands is crucial for consumers when selecting products. Companies that prioritise transparency in their manufacturing processes, adhere to international quality standards, and invest in marketing campaigns that highlight their credibility tend to build stronger customer loyalty. Word-of-mouth recommendations and social media influence are also significant in shaping consumer perceptions.
Interest in Natural and Herbal Remedies: There is a growing trend toward natural and herbal remedies in Vietnam, driven by traditional medicine practices and an increasing preference for holistic health solutions. Consumers often seek out herbal supplements and products that are perceived as safer or more effective than conventional pharmaceuticals, reflecting a blend of modern and traditional health practices.
Price Sensitivity: While there is a demand for quality pharmaceuticals, many consumers remain price-sensitive, particularly in lower-income segments. Affordable options and promotional deals significantly influence purchasing decisions. As a result, generic medications and cost-effective alternatives are often preferred.
These trends highlight the evolving consumer landscape in Vietnam’s pharmaceuticals industry, where health awareness, digital engagement, and cultural preferences are reshaping how consumers approach their healthcare needs. Understanding these behaviours is essential for companies looking to effectively reach and serve the Vietnamese market.
What’s next?
Vietnam’s pharmaceuticals industry is experiencing robust growth, driven by increasing health awareness, rising demand for medications, and supportive government policies. With a focus on both traditional and modern healthcare solutions, the market is seeing a shift towards locally produced pharmaceuticals, which are often favoured for their affordability and relevance to local health needs.
Overall, the industry is poised for continued expansion, characterised by innovation, increased investment, and a commitment to improving healthcare access for the Vietnamese population.
With this in mind, to keep abreast of what’s happening in Vietnam’s pharmaceuticals industry, foreign pharmaceuticals industry professionals should make sure to subscribe to the-shiv.