Vietnam Generic Drugs Market to Grow with a CAGR of 9.95% through 2030

Aging Population and the Rising Prevalence of Chronic Diseases and Growth of Healthcare Infrastructure is expected to drive the Vietnam Generic Drugs Market growth in the forecast period, 2026-2030

According to TechSci Research report, “Vietnam Generic Drugs Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Vietnam Generic Drugs Market stood at USD 3.25 Billion in 2024 and is anticipated to grow with a CAGR of 9.95% in the forecast period, 2026-2030.

The Vietnamese government plays a crucial role in advancing the use of generic drugs through targeted policy initiatives. With a focus on improving healthcare access and affordability, the government has implemented regulations that foster the production and distribution of generics. Key reforms, such as the revised Pharmacy Law, aim to streamline drug approval processes and incentivize domestic production of generics. Additionally, government price controls on essential medications contribute to the affordability of generics, driving their widespread adoption among healthcare providers and patients alike.

As Vietnam’s middle class grows and urbanization accelerates, the demand for affordable healthcare options has surged. With healthcare expenditure on the rise, both individuals and institutions are increasingly seeking cost-effective alternatives to branded pharmaceuticals. Generic drugs provide an affordable solution without compromising on quality, meeting the rising demand for accessible healthcare. This is particularly evident in public healthcare facilities, private clinics, and the expanding trend of outpatient care.

Vietnam has made significant progress in strengthening its domestic pharmaceutical manufacturing capabilities, particularly in the production of generics. The establishment of local manufacturing plants, coupled with government incentives, is decreasing the nation’s reliance on imported generics. This shift not only strengthens the supply chain but also enhances the accessibility and affordability of generics for the Vietnamese population. Moreover, this transition ensures that domestically produced generics meet both local and international quality standards, boosting confidence in locally manufactured products.

Vietnam’s strategic location within the ASEAN region and its participation in multiple free trade agreements (FTAs) position the country as an attractive destination for generic drug manufacturers looking to expand into international markets. These trade agreements provide smoother access to neighboring regions, where there is a growing demand for affordable pharmaceuticals. The ability to export generics to other Southeast Asian nations presents significant growth opportunities for Vietnam’s generic drug market, creating additional revenue streams for local producers.

Increased investment in pharmaceutical research and technology within Vietnam has led to more advanced manufacturing processes, improving the quality of generic drugs. Local manufacturers are adopting cutting-edge technologies, such as artificial intelligence and automation, to enhance production efficiency and product quality. These innovations have not only improved the quality of generics but have also contributed to cost reductions, making them even more affordable for the market. Public health campaigns and growing awareness of the benefits of generic drugs have significantly contributed to the sector’s growth. Both government and private healthcare organizations have actively promoted generics as safe, effective, and affordable alternatives to branded drugs. Increased public confidence, fueled by educational and advocacy efforts, is driving higher demand for generics among consumers and healthcare providers, further expanding the market.

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The Vietnam Generic Drugs Market is segmented into type, mode of drug delivery, form, source, distribution channel, application, regional distribution, and company.

Based on its form, the Tablets segment has emerged as the predominant market leader, Tablets are the most cost-effective dosage form for pharmaceutical companies to produce, which aligns well with the Vietnamese government’s focus on making healthcare more affordable. Due to their simpler manufacturing process and relatively low production costs, generic tablets are priced competitively, making them an attractive option for both public healthcare facilities and private clinics. This price sensitivity in the Vietnamese market has contributed to the dominance of the tablet segment, especially for the treatment of chronic conditions that require long-term therapy, such as hypertension, diabetes, and cardiovascular diseases. Additionally, the affordability of generic tablets ensures that they are within financial reach of a larger portion of the population, further driving demand.

The rising prevalence of chronic diseases in Vietnam, such as diabetes, hypertension, and heart disease, significantly boosts the demand for generic tablets. These conditions often require ongoing management with oral medications, and tablets are the most common and preferred form of administration for long-term treatment regimens. The chronic nature of these diseases in Vietnam’s growing middle-aged and elderly population creates a continuous demand for affordable, effective therapies, further solidifying tablets as the dominant dosage form in the generic drugs market. Tablets also dominate due to their widespread availability and ease of distribution within both urban and rural regions. The well-established distribution network for tablets, including pharmacies and healthcare centers, ensures their broad availability to patients across the country. Additionally, healthcare providers are more familiar with prescribing tablets, as they are the most commonly used dosage form in most therapeutic categories. This familiarity with tablets, coupled with their proven efficacy, contributes to their continued dominance in the market.

Based on its source, the In-house Manufacturing Segment has emerged as the predominant market leader, Vietnam’s government has been proactive in supporting the domestic pharmaceutical industry, particularly in the production of generic drugs, through various policies and incentives. These initiatives encourage local manufacturers to invest in their own production facilities, reducing reliance on imports. The emphasis on developing a self-sufficient supply chain aligns with Vietnam’s broader goals of ensuring greater control over its healthcare system and reducing dependency on foreign pharmaceutical imports. Local manufacturing, through in-house production, is viewed as a critical component in addressing the growing demand for generics at affordable prices. As a result, the in-house manufacturing segment has gained substantial traction in Vietnam’s generic drugs market.

In-house manufacturing provides pharmaceutical companies with direct oversight over product quality, ensuring compliance with both local and international standards. This is particularly important as the Vietnamese market sees growing demand for generics that meet high-quality standards, including compliance with international regulatory frameworks such as Good Manufacturing Practices (GMP) and World Health Organization (WHO) prequalification. In-house production offers companies the ability to monitor every aspect of the manufacturing process, from raw materials to the final product, ensuring consistency and quality control. This level of control is often seen as a competitive advantage, particularly as the global demand for quality generics continues to rise.

Major companies operating in Vietnam Generic Drugs Market are:

• DHG Pharmaceutical Joint Stock Company
• Traphaco Joint Stock Company
• Pymepharco Joint Stock Company
• Hatay Pharmaceutical Joint Stock Company
• Mekophar Chemical Pharmaceutical JSC
• Imexpharm Corporation
• OPC Pharmaceutical Joint Stock Company

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“The Vietnam Generic Drugs Market is poised for continued growth, driven by a combination of government policies supporting local manufacturing, a rising demand for affordable healthcare, and advancements in pharmaceutical production technology. The market’s expansion is further bolstered by the growing prevalence of chronic diseases and an increasingly urbanized population seeking cost-effective medication options. While in-house manufacturing remains the dominant model, offering significant advantages in terms of cost control, quality assurance, and market responsiveness, the role of contract manufacturing organizations also provides a flexible solution for certain market segments. With the ongoing shift toward self-sufficiency, coupled with strategic investments in research and development, Vietnam is well-positioned to become a key player in both the regional and global generic drugs market. As the industry continues to evolve, both local manufacturers and international players must remain agile to capitalize on emerging opportunities and navigate challenges in this dynamic sector.,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Vietnam Generic Drugs Market, By Type (Small Molecule Generics, Biosimilars), By Mode of Drug Delivery (Oral, Parenteral, Topical, Others), By Form (Tablets, Capsules, Injections, Others), By Source (Contract Manufacturing Organizations, In-house), By Distribution Channel (Retail Pharmacies, Hospital Pharmacies, Online Pharmacies, Others), By Application (Neurology, Oncology, Cardiovascular Diseases, Diabetes, Anti-Inflammatory Diseases, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Vietnam Generic Drugs Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Vietnam Generic Drugs Market.

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