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Forecast Period
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2025-2029
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Market Size (2023)
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USD 7.60 Billion
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Market Size (2029)
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USD 12.12 Billion
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CAGR (2024-2029)
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7.96%
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Fastest Growing Segment
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Generic Drugs
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Largest Market
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South Vietnam
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Market Overview
Vietnam Pharmaceuticals Market was valued at USD
7.60 Billion in 2023 and is anticipated to project impressive growth in the
forecast period with a CAGR of 7.96% through 2029. Several factors are driving
the growth of the Vietnam Pharmaceuticals Market. Demographic trends, including
a growing population and an aging demographic, are increasing demand for
healthcare services and pharmaceutical products. Rising income levels and
improving healthcare infrastructure are expanding access to medicines across
the country. Government initiatives aimed at promoting domestic pharmaceutical
production, improving regulatory frameworks, and enhancing intellectual
property rights protection are stimulating investment in the pharmaceutical
sector. Increasing prevalence of chronic diseases and a shift towards
lifestyle-related illnesses are fueling demand for a diverse range of
pharmaceutical products, including innovative treatments and generic medicines.
Key Market Drivers
Economic Development
Vietnam's remarkable economic expansion,
accompanied by the ascent of disposable incomes and the amelioration of living
standards, constitutes a driving force behind the surge in healthcare
expenditure and pharmaceutical consumption. As Vietnam progresses from a state
of low-income to that of a middle-income economy, there emerges an augmented
capacity and inclination among its populace to allocate resources towards
healthcare and well-being provisions. This propensity extends to a diverse
array of healthcare products, spanning from prescription medications to
over-the-counter remedies and health supplements, indicative of a burgeoning
health-consciousness permeating society. The broadening accessibility of health
insurance coverage, coupled with concerted government efforts aimed at
fortifying the nation's healthcare infrastructure, synergistically catalyze the
expansion of the pharmaceutical sector. Such initiatives not only enhance
healthcare accessibility but also instill confidence in consumers, fostering a
conducive environment for sustained growth and innovation within the pharmaceutical
market of Vietnam.
Government Policies and Regulatory Reforms
Government policies and regulatory reforms exert
significant influence on shaping Vietnam's pharmaceutical market dynamics. The
government's steadfast dedication to fostering domestic pharmaceutical
production, coupled with efforts to refine regulatory frameworks and bolster
intellectual property rights protection, fosters an environment conducive to
investment and innovation within the pharmaceutical sector. By prioritizing the
promotion of domestic pharmaceutical manufacturing, the government aims to
reduce reliance on imported drugs, bolster self-sufficiency, and enhance
national healthcare resilience. Initiatives aimed at fortifying the healthcare
system, such as expanding access to essential medicines and promoting the
utilization of generic drugs, serve to bolster the pharmaceutical market's
growth and maturation. These initiatives not only enhance medication
affordability and availability but also incentivize pharmaceutical companies to
invest in research and development, manufacturing capabilities, and market
expansion. Overall, government policies and regulatory reforms play a pivotal
role in nurturing a vibrant and sustainable pharmaceutical market landscape in
Vietnam, fostering growth, innovation, and accessibility within the sector.
Healthcare Infrastructure Development
Vietnam's relentless endeavors to enhance
healthcare infrastructure and widen access to healthcare services constitute
pivotal drivers propelling growth within the pharmaceutical market. Substantial
investments directed towards bolstering healthcare facilities encompassing
hospitals, clinics, and pharmacies are pivotal in fostering an environment ripe
for pharmaceutical companies to expand their reach across a broader spectrum of
patients. In March 2024, Vietnam has committed to upgrading six hospitals to
international standards in response to the growing trend of its citizens
seeking medical care abroad. These hospitals, located in Hanoi, Ho Chi Minh
City, and Thừa Thiên-Huế, will be equipped with advanced technology and will
provide “world-class” medical services to both domestic and international
patients. The plan aims to achieve an accessibility target of 33 hospital beds,
15 doctors, 3.4 pharmacists, and 25 nurses per 10,000 people by 2025. By 2030,
these figures are expected to increase to 35 hospital beds, 19 doctors, 4
pharmacists, and 33 nurses per 10,000 people. Looking ahead to 2050, Vietnam’s
healthcare sector aspires to establish several modern facilities meeting
international standards, with targets of 45 hospital beds, 35 doctors, 4.5
pharmacists, and 90 nurses per 10,000 people. Additionally, there are plans to
expand private healthcare facilities, with private beds projected to constitute
at least 10% of the total by 2025, 15% by 2030, and 25% by 2050. This expansion not only facilitates the distribution of pharmaceutical
products but also serves to cater to the burgeoning healthcare needs of an
increasingly diverse patient demographic. The integration of cutting-edge
healthcare technologies, including electronic medical records and telemedicine
solutions, into the healthcare ecosystem serves to optimize healthcare delivery
processes. These advancements not only enhance the efficiency and accuracy of
patient care but also augment the demand for pharmaceutical products. The
seamless integration of technology into healthcare infrastructure not only
streamlines administrative processes but also enables healthcare providers to
deliver more personalized and effective treatment regimens, consequently
driving the uptake of pharmaceutical products. Thus, Vietnam's sustained focus on
enhancing healthcare infrastructure and embracing technological innovations
underscores its pivotal role in propelling growth and development within the
pharmaceutical market, while simultaneously ensuring improved healthcare
outcomes for the population.
Disease Burden and Epidemiological Shifts
The escalating incidence of chronic diseases,
infectious ailments, and lifestyle-related disorders is serving as a catalyst
for the burgeoning demand for pharmaceutical products across Vietnam. According to the latest available data from the WHO,
non-communicable diseases (NCDs) accounted for 81% of deaths in Vietnam in
2019. The leading causes of death that year were stroke, ischemic heart
disease, diabetes, chronic obstructive pulmonary disease, and lung cancer. A notable
shift in disease patterns, marked by a surge in non-communicable diseases
(NCDs) such as diabetes, cardiovascular conditions, and cancer (In 2017, diabetes had a nationwide prevalence of 6.0%,
affecting approximately 5 million adults in Vietnam. Additionally, Vietnam
experiences an estimated 165,000 new cases of cancer and 115,000 cancer-related
deaths annually), presents
pharmaceutical companies with lucrative opportunities to innovate and introduce
treatments tailored to address these prevalent health concerns. The rising
prevalence of these ailments underscores the imperative for effective
pharmaceutical interventions to manage and mitigate their impact on public
health.
The persistent burden of infectious diseases
remains a formidable challenge in Vietnam's healthcare landscape. Conditions
such as dengue fever, tuberculosis, and HIV/AIDS continue to pose significant
public health threats (According to the Global Tuberculosis Report 2018, Vietnam
recorded an estimated 124,000 new cases of tuberculosis (TB) and 12,000
TB-related deaths in 2017. Additionally, there were 4,500 cases of TB/HIV
coinfection reported in the same year), necessitating the development and distribution of
vaccines, antibiotics, and antiviral medications. The demand for these
pharmaceutical products is driven by the pressing need to combat infectious
diseases, reduce transmission rates, and safeguard public health.
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Key Market Challenges
Counterfeit Drugs and Quality Assurance
The prevalence of counterfeit drugs and substandard
pharmaceutical products in Vietnam represents a significant threat to public
health, as well as a formidable challenge for pharmaceutical companies
operating within the market. The proliferation of counterfeit medications not
only undermines the efficacy of healthcare interventions but also erodes
consumer confidence in the safety and reliability of pharmaceutical products.
This poses grave risks to patient health and wellbeing, as individuals may
unknowingly consume counterfeit drugs that lack the required active
ingredients, contain harmful substances, or fail to meet quality and safety
standards.
To address this pressing issue, it is imperative to
implement robust regulatory oversight mechanisms aimed at monitoring and
regulating the pharmaceutical supply chain effectively. Strengthening
regulatory frameworks and enforcement mechanisms can help mitigate the influx
of counterfeit drugs into the market, deter illicit activities, and hold
offenders accountable. Implementing stringent quality control measures
throughout the manufacturing, distribution, and dispensing processes is
essential to ensure the integrity and authenticity of pharmaceutical products.
Access to Healthcare Services
The widespread presence of counterfeit drugs and
substandard pharmaceutical products in Vietnam poses a grave threat to public
health, presenting a formidable challenge for pharmaceutical companies
operating within the market. Beyond compromising the efficacy of healthcare
interventions, the proliferation of counterfeit medications undermines public
trust in the safety and reliability of pharmaceutical products. This raises
alarming concerns for patient health and well-being, as individuals may
unwittingly consume counterfeit drugs that lack essential active ingredients,
contain harmful substances, or fail to meet stringent quality and safety
standards.
Addressing this urgent issue requires the
implementation of robust regulatory oversight mechanisms aimed at monitoring and
regulating the pharmaceutical supply chain effectively. By bolstering
regulatory frameworks and enforcement mechanisms, authorities can mitigate the
infiltration of counterfeit drugs into the market, deter illicit activities,
and hold offenders accountable for their actions. The introduction of stringent
quality control measures throughout the entire pharmaceutical lifecycle—from
manufacturing and distribution to dispensing—is imperative to uphold the
integrity and authenticity of pharmaceutical products.
Key Market Trends
Technological Advancements and Innovation
Technological advancements within the
pharmaceutical sector are instrumental in propelling innovation and catalyzing
growth within the Vietnam Pharmaceuticals Market. Pioneering research and
development initiatives focused on the creation of novel drugs, biologics, and
medical devices are driving transformative breakthroughs that revolutionize
treatment modalities and therapeutic outcomes. These advancements facilitate
the development of cutting-edge pharmaceutical formulations and delivery
systems, fostering the creation of safer, more efficacious, and targeted
therapies for a diverse array of diseases and medical conditions prevalent in
Vietnam.
Investments in biotechnology, genomics, and
personalized medicine herald a new era of precision healthcare, offering
tailored therapeutic solutions that address unmet medical needs and optimize
patient outcomes. The integration of advanced technologies into drug discovery
processes enables pharmaceutical companies to expedite the identification and
validation of novel drug targets, accelerating the development of innovative
therapies. The advent of precision medicine approaches, facilitated by genomic
sequencing and biomarker identification, enables healthcare providers to
deliver personalized treatment regimens that are tailored to the unique genetic
makeup and medical profiles of individual patients.
Medical Tourism and Healthcare Exports
Vietnam's growing reputation as a medical tourism
destination and an emerging hub for healthcare exports drives demand for pharmaceutical
products. The availability of high-quality healthcare services, skilled
healthcare professionals, and affordable medical treatments attracts medical
tourists from neighboring countries as well as overseas Vietnamese communities
seeking specialized care and treatment options. Vietnam's pharmaceutical
industry exports a wide range of products, including generic drugs, active
pharmaceutical ingredients (APIs), and medical devices, to international
markets, contributing to the growth of the pharmaceutical market.
Segmental Insights
Drug Type Insights
Based on the Drug Type, generic
drugs are emerging as dominant segment, gradually overtaking branded drugs in
terms of market share and revenue. This transition is reflective of several
factors shaping the pharmaceutical landscape in Vietnam. Generic drugs offer
cost-effective alternatives to branded medications, catering to the healthcare
needs of a diverse and price-conscious population. With Vietnam's healthcare
system striving to balance affordability and accessibility, generic drugs
present an attractive option for patients seeking quality treatments at lower
costs. This affordability factor is particularly significant in a developing
economy like Vietnam, where out-of-pocket healthcare expenditures remain
prevalent among a significant portion of the population.
The Vietnamese government
has been actively promoting the use of generic drugs as part of its efforts to
enhance healthcare accessibility and affordability. Through initiatives such as
generic drug substitution policies and preferential procurement programs, the
government incentivizes healthcare providers and patients to opt for generic
alternatives over branded medications. These measures not only contribute to
cost savings within the healthcare system but also drive demand for generic
drugs, thereby bolstering their market dominance. The increasing prevalence of
chronic diseases and age-related ailments in Vietnam has fuelled demand for
long-term medication therapies, where generic drugs offer sustainable and
economical treatment options. As the burden of chronic diseases continues to
rise, particularly among the aging population, the demand for affordable and
accessible pharmaceuticals is expected to further drive the growth of the generic
drug segment.
Product Type Insights
Based on the Product Type segment,
prescription drugs currently hold sway over over-the-counter (OTC) medications,
primarily due to the nature of healthcare delivery and consumer behavior in the
country. Prescription drugs, which require authorization from a licensed
healthcare provider, are predominant in addressing acute and chronic medical
conditions that necessitate specialized diagnosis, treatment, and monitoring.
As such, they constitute a substantial portion of pharmaceutical sales and
revenue, reflecting the prevalence of complex health issues and the importance
of professional medical guidance in managing them effectively.
Several factors contribute
to the dominance of prescription drugs in the Vietnam Pharmaceuticals Market. The
country's healthcare system predominantly relies on physician consultations and
prescription-based treatments, with patients typically seeking medical advice
for both minor ailments and serious health conditions. This healthcare-seeking
behavior aligns with cultural norms and societal perceptions that prioritize
professional medical expertise in diagnosing and managing illnesses. The
regulatory framework in Vietnam mandates strict control over the distribution
and dispensing of prescription medications, with licensed healthcare providers
playing a pivotal role in prescribing and monitoring their use. This regulatory
oversight ensures patient safety, promotes rational drug use, and minimizes the
risks associated with self-medication and inappropriate drug use.
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Regional Insights
The South region of Vietnam exerts significant
dominance over the country's pharmaceutical market due to several key factors
that collectively shape its prominence within the industry. Foremost among
these factors is the region's economic vibrancy and industrial development,
with cities such as Ho Chi Minh City and neighboring provinces emerging as
major economic hubs driving the growth of various sectors, including healthcare
and pharmaceuticals. Ho Chi Minh City, in particular, stands out as Vietnam's
largest city and economic powerhouse, boasting a robust healthcare
infrastructure, extensive network of hospitals and clinics, and a burgeoning
pharmaceutical industry. This economic dynamism creates a conducive environment
for pharmaceutical companies to thrive, attract investments, and capitalize on
the burgeoning demand for healthcare products and services.
The South region benefits from its strategic
geographic location and connectivity, serving as a gateway for international
trade and investment. Situated in close proximity to major international ports
and transportation hubs, including Tan Son Nhat International Airport and ports
along the Saigon River, the region enjoys seamless access to global markets,
facilitating the importation of raw materials, pharmaceutical ingredients, and
finished products. This strategic advantage enables pharmaceutical companies in
the South to efficiently distribute their products nationwide and capitalize on
export opportunities, further bolstering their dominance in the market.
Recent Developments
- In March 2024, Korean
Genuone and Imexpharm are teaming up to offer a diverse range of
pharmaceuticals tailored to tackle prevalent health issues in the Vietnamese
market. This collaboration entails joint efforts in drug registration,
manufacturing, and distribution within Vietnam, with Genuone transferring
cutting-edge technology to Imexpharm. Through this knowledge exchange,
Imexpharm will acquire the capability to autonomously produce and oversee
top-notch, branded medications in the future. This initiative aligns with
Imexpharm's aspiration to emerge as a frontrunner in the pharmaceutical sector.
Key Market Players
- Bayer Vietnam Ltd.
- DHG Pharmaceutical Joint Stock Company
- Traphaco Joint Stock Company
- Pharmaceutical Corporation Ha Tay
- Domesco Medical Import Export Joint Stock
Corporation (DOMESCO)
- OPC Pharmaceutical Joint Stock Company
- Sanofi Vietnam
- Mekophar Chemical and Pharmaceutical JSC
- Imexpharm Pharmaceutical Joint Stock Company
- Pymepharco Joint Stock Company
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By Drug Type
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By Product Type
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By Application
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By Distribution Channel
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By Region
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- Generic Drugs
- Branded Drugs
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- Prescription Drugs
- Over-The-Counter Drugs
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- Cardiovascular
- Musculoskeletal
- Oncology
- Anti-infective
- Metabolic Disorder
- Others
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- Retail Pharmacy
- Hospital Pharmacy
- E-Pharmacy
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- South Vietnam
- North Vietnam
- Central Vietnam
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Report Scope:
In this report, the Vietnam Pharmaceuticals Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Vietnam Pharmaceuticals Market, By Drug Type:
o Generic Drugs
o Branded Drugs
- Vietnam Pharmaceuticals Market, By Product Type:
o Prescription Drugs
o Over-The-Counter Drugs
- Vietnam Pharmaceuticals
Market, By
Application:
o Cardiovascular
o Musculoskeletal
o Oncology
o Anti-infective
o Metabolic Disorder
o Others
- Vietnam Pharmaceuticals
Market, By
Distribution Channel:
o Retail Pharmacy
o Hospital Pharmacy
o E-Pharmacy
- Vietnam Pharmaceuticals Market,
By Region:
o South Vietnam
o North Vietnam
o Central Vietnam
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Vietnam Pharmaceuticals Market.
Available Customizations:
Vietnam Pharmaceuticals Market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Vietnam Pharmaceuticals Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]