Vietnam Pharmaceuticals Market 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), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

Vietnam Pharmaceuticals Market was valued at USD 7.60 Billion in 2024 and is expected to reach USD 12.12 Billion by 2030 with a CAGR of 7.96% during the forecast period.

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.

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Key Market Drivers

Demographic Shifts and Disease Profiles

A primary catalyst behind the expansion of Vietnam’s pharmaceutical industry is the country’s demographic transition, as a steadily aging population is increasing the need for long-duration treatment across chronic care categories, including cardiovascular therapies, diabetes medicines, oncology drugs, and affordable generics suited to recurring use. This demand is being reinforced by rapid urbanization and lifestyle shifts, which are contributing to a broader burden of non-communicable diseases and pushing the market beyond acute treatment toward sustained medication use, physician-led prescription demand, and more preventive health consumption. At the same time, consumer awareness around wellness is widening interest in vaccines, nutritional supplements, and other preventive healthcare products, as households increasingly prioritize earlier intervention rather than waiting for advanced illness.

These structural forces are especially favorable for generic medicines, since cost-conscious patients and providers need lower-priced solutions for long-term disease management, making chronic therapy access a central growth theme in Vietnam’s pharmaceutical landscape. For Instance, the World Health Organization states that one in every 20 Vietnamese adults has diabetes, while VinUniversity notes that older people are projected to account for about 20 percent of the population by 2038, clearly illustrating why chronic care and age-related pharmaceutical demand are set to deepen over time.

Economic Growth and Healthcare Access

Parallel to demographic change, Vietnam’s strong economic trajectory is widening pharmaceutical market access by increasing household purchasing power and enabling more consumers to spend on physician consultations, branded medicines, preventive products, and higher-quality treatment pathways rather than relying only on basic, price-led purchases. As the country deepens its middle-income profile, rising disposable incomes and broader health insurance coverage are supporting higher per capita medical spending, which is translating into stronger demand for both prescription medicines and organized pharmacy-based healthcare access.

This economic empowerment is being reinforced by healthcare infrastructure expansion, as investment in hospitals, clinics, and pharmacy distribution is improving physical access to medicines across both major cities and secondary markets. Vietnam’s growing digital health ecosystem is also extending reach further, with telemedicine, e-pharmacy models, and technology-enabled consultations helping reduce access gaps and connect patients more efficiently to medicines and care pathways. For Instance, FPT Retail’s Long Chau chain had 1,943 pharmacies and 126 vaccination centers in 2024 and planned to reach about 2,500 pharmacies and vaccination centers by 2025, clearly showing how large private-sector networks are accelerating medicine availability and healthcare convenience across Vietnam.

Government Policies and Regulatory Reforms

Favorable government policies and regulatory reforms are becoming a decisive force in Vietnam’s pharmaceutical industry, because they are not only modernizing approval pathways but also reshaping how medicines are produced, distributed, and accessed across the country. The amended Law on Pharmacy, effective from July 1, 2025, shortens reference-based drug registration approvals to nine months and legalizes the online sale of non-prescription medicines, creating a more efficient framework for product launches while opening a clearer path for e-pharmacy development and wider retail reach. At the same time, the National Strategy for developing the pharmaceutical industry through 2030 is pushing Vietnam to reduce dependence on imported medicines and raw materials by strengthening domestic manufacturing capacity, technology transfer, and local value creation.

Under this strategy, Vietnam aims for domestic production to meet 80 percent of pharmaceutical demand and 70 percent of market value by 2030, while local pharmaceutical materials are expected to supply 20 percent of the country’s drug production needs. Broader health insurance coverage is reinforcing these reforms, with about 93.4 percent of the population covered in 2024, helping translate policy change into real demand-side access. For Instance, FPT Retail planned in 2024 to open 400 new Long Chau pharmacies and 100 vaccination centers, showing how major private players are already scaling in response to a more supportive regulatory and healthcare access environment.

Foreign Direct Investment and Strategic Partnerships

Foreign Direct Investment and strategic partnerships are becoming central to Vietnam’s pharmaceutical transformation, as multinational companies increasingly use acquisitions, equity stakes, and technology-led collaborations to deepen their manufacturing footprint and raise the quality of local production. This matters because foreign participation is not limited to capital infusion; it is also accelerating technology transfer, regulatory upgrading, and the adoption of internationally recognized manufacturing practices that improve the competitiveness of medicines made in Vietnam.

A major priority is the upgrade of domestic facilities to higher compliance levels such as EU-GMP, since these standards strengthen access to high-value hospital tenders, support export readiness, and help Vietnam move from basic generics toward more sophisticated pharmaceutical production. At the same time, the market is showing growing interest in biotechnology, genomics, personalized medicine, and more localized innovation pathways, reinforcing Vietnam’s position as one of the more dynamic pharmaceutical investment destinations in Asia-Pacific. For Instance, STADA increased its indirect stake in Pymepharco to 72 percent, noted that two production areas at the Vietnamese site already applied EU-GMP standards, and stated that a third area was being established, illustrating how foreign investors are pairing capital with technical upgrading to strengthen Vietnam’s local manufacturing base.

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 advancement is becoming a key force behind innovation in Vietnam’s pharmaceutical sector, as regulatory reform and higher-value scientific investment are gradually improving the country’s ability to discover, register, manufacture, and distribute more advanced therapies. The amended Law on Pharmacy is especially important in this transition because it introduces a reference-based mechanism that allows drug dossiers appraised by recognized foreign authorities to be reviewed in nine months rather than 12 months for normal dossiers, which can shorten time to market and improve patient access to newer medicines.

At the same time, Vietnam is moving toward more innovation-led healthcare through investment in biotechnology, gene and cell technologies, monoclonal antibodies, artificial intelligence, big data, and in vitro diagnostics, creating the foundation for more targeted and personalized treatment approaches in the future. These developments strengthen the market beyond basic generics by supporting safer formulations, better delivery systems, and more precise therapies aligned with the country’s growing chronic disease burden and evolving treatment expectations. For Instance, DHG Pharma reported that it launched 14 new products in 2024 that generated 62 billion dong in net sales and introduced Lusefi, a patented medicine containing luseogliflozin for type 2 diabetes, illustrating how local pharmaceutical companies are already translating technology transfer and product development into commercially relevant innovation.

Medical Tourism and Healthcare Exports

Vietnam’s growing role in medical tourism and healthcare exports is reinforcing pharmaceutical demand by expanding both treatment volumes and the international reach of locally manufactured products. The country is attracting patients from neighboring markets and overseas Vietnamese communities because it combines improving clinical expertise, skilled physicians, and modern hospital capabilities with treatment costs that remain highly competitive by regional and global standards. This strengthens demand for a wide range of pharmaceutical products, including hospital medicines, generic therapies, supportive care products, and wellness-focused formulations used across cardiovascular treatment, rehabilitation, fertility care, aesthetic procedures, and other specialized services increasingly offered in Vietnam.

At the same time, healthcare exports are becoming more relevant to industry growth because domestic manufacturers are supplying pharmaceutical products to overseas partners, which encourages higher production standards, broader product portfolios, and greater competitiveness in international markets. The combination of inbound patient flows and outbound pharmaceutical shipments therefore creates a dual growth engine, linking Vietnam’s healthcare service ambitions with its wider pharmaceutical manufacturing and export potential. For Instance, DHG Pharma reported export sales of VND 130 billion in 2024, shipping more than 250 million product units across 20 countries through 27 distribution partners and pharmacy chains, illustrating how Vietnamese pharmaceutical companies are already building meaningful export scale alongside domestic healthcare expansion.

Segmental Insights

Drug Type Insights

Based on Drug Type, the Generic drugs emerged as the fastest growing segment in the Vietnam Pharmaceuticals market during the forecast period. Generic drugs offer a significant cost advantage over branded medications, making them an appealing choice for both patients and healthcare providers in Vietnam’s price-sensitive market. As healthcare costs rise, the affordability of generics plays a crucial role in ensuring broader access to essential treatments. With increasing awareness of healthcare needs, especially in rural areas where access to care is often limited, demand for affordable medications, particularly generics, is growing.

The Vietnamese government has supported the use of generic medicines through policies that aim to control costs and improve healthcare access. The expiration of patents for branded drugs has further fueled the demand for generics, ensuring continuity in treatment at lower costs. Additionally, the rising prevalence of chronic conditions like diabetes, hypertension, and cardiovascular diseases has increased the demand for long-term medications, with generics being the preferred, more affordable option for extended management. These factors have positioned generic drugs as the fastest-growing segment in Vietnam’s pharmaceutical market, driven by both cost-efficiency and the country's healthcare needs. 

Product Type Insights

Based on product type, Prescription Drugs emerged as the dominating segment in the Vietnam Pharmaceuticals market in 2024. 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 Vietnamese pharmaceutical 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

Based on Region, Southern Vietnam emerged as the dominant region in the Vietnam Pharmaceuticals market in 2024. Ho Chi Minh City serves as Vietnam’s economic and commercial hub, driving the demand for healthcare products, including pharmaceuticals. The region's robust economic growth and rapid urbanization have heightened the need for advanced healthcare services and medications.

Southern Vietnam is home to the most advanced healthcare infrastructure in the country, with numerous hospitals, clinics, and pharmaceutical distributors. This concentration of facilities improves access to medications and stimulates the growth of the pharmaceutical sector. According to the EU-Vietnam Business Network (EVBN), 80% of Vietnamese individuals purchase drugs from private pharmacies and often self-medicate. The pharmaceutical industry is expanding, with around 250 manufacturing plants, 200 import-export facilities, 4,300 wholesale agents, and over 62,000 retail agents.

Leading pharmaceutical companies, both domestic and international, have established their headquarters or production sites in southern Vietnam, benefiting from the region's well-developed infrastructure that supports efficient distribution. The growing population, coupled with the rising prevalence of chronic diseases and an aging demographic, further fuels the demand for pharmaceutical products. The World Bank reported that 7.6 million Vietnamese people were aged 65 and above in 2020, representing nearly 7.9% of the population, with projections suggesting this will increase to 18.1% by 2049. This demographic shift creates sustained demand for pharmaceuticals.

Additionally, southern Vietnam has attracted significant investments in healthcare technologies, boosting innovation in pharmaceutical research, development, and manufacturing, which strengthens the region’s position in the market. These factors combine to make southern Vietnam the dominant player in the country’s pharmaceutical sector, driving both demand and supply. 

Recent Developments

• In January 2025, Vietnam began construction of its first plasma-based biopharmaceutical production plant in Thu Duc City, Ho Chi Minh City, marking a major manufacturing breakthrough for the domestic pharmaceutical industry. In January 2025, VietnamPlus reported that the facility is intended to strengthen strategic reserves of biological medicines, reduce dependence on imported pharmaceuticals, and support greater national self-sufficiency in medicines, vaccines, and biopharmaceuticals, with the first batch of products expected in 2026.

• In May 2025, Imexpharm planned to build a $58 million pharmaceutical plant in Dong Thap province and launch 16 new products in 2025, focusing on high-tech segments such as first generics, biosimilars, and complex formulations. In May 2025, the development stood out because the company said these higher-technology products would improve margins and expand its manufacturing depth beyond its existing four plant complexes and 12 EU-GMP production lines, signalling an important innovation-led upgrade in Vietnam’s local drug industry.

• In August 2025, South Korea’s Celltrion made a full-scale entry into Vietnam by launching four pharmaceutical products, including the autoimmune treatment Remsima and the cancer therapy Herzuma. In August 2025, Biz Chosun said the company had already completed local sales approval and product release for these medicines and was using the rollout to build market share in Vietnam, making it a significant product-launch development in advanced therapeutics.

• In December 2025, French pharmaceutical group Biocodex signed a strategic partnership with Vietnam’s pharmacy chain Pharmacity to expand distribution of its health products across the country. In December 2025, The Investor described the agreement as a milestone for widening consumer access through Pharmacity’s national retail footprint, making it one of the clearest collaboration-led developments in Vietnam’s pharmaceutical distribution landscape during the period.

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

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   Southern Vietnam

o   Northern 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).

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