Vietnam
pharmaceuticals market was valued at USD 6.98 billion in 2022 and is further
anticipated to grow at a CAGR of 8.19% during the forecast period. Vietnam's
growing population, increasing burden of chronic diseases, improving healthcare
infrastructure, and supportive government policies are some of the factors
influencing the growth of Vietnam pharmaceuticals market, positively.
Vietnam
is one of the fastest-growing economies in the world, with a population of more
than 95 million people. Vietnam is a major market for pharmaceuticals and
services. The country's population metric is changing due to aging population
and a growing middle class.
As
the population ages, the need for health care and pharmaceuticals increases,
and the increasing PPP enables the middle class to spend more money on health
care, which can boost the pharmaceutical market. Vietnam, like many developing
countries, is facing an increasing number of chronic diseases, such as
diabetes, cardiovascular disease, cancer, and respiratory diseases.
The
prevalence of chronic diseases is on the rise due to sedentary lifestyles, poor
diet, and environmental factors. As a result, there is an increased need for
pharmaceutical products to treat and manage these chronic diseases, driving
market growth.
Vietnam
has made considerable progress in improving its healthcare system. The
country’s investments in healthcare institutions, hospitals, clinics, and
medical centers have increased access to healthcare services throughout the
country. This improved access to healthcare has had a positive effect on the
pharmaceutical market, as patients are now able to seek medical advice and get
prescriptions more easily.
Vietnam
is committed to the development of the healthcare sector and the pharmaceutical
industry. The government has made several initiatives and policies, which
provide a roadmap for the growth and development of the pharmaceutical sector.
The government has also taken steps to promote domestic drug production,
decrease dependency on imports, and support research and development, which
have created the right conditions for pharmaceutical companies to flourish.
Vietnam's
advantageous geographical position and membership in global trade agreements,
such as the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP), have made it a desirable location for foreign
pharmaceutical companies wishing to expand their operations in the Southeast
Asian region. Foreign investment and cooperation have enabled the introduction
of cutting-edge technologies, knowledge, and a wider selection of
pharmaceutical products, thus increased competition and stimulated market
development.
As
health education and awareness grows in Vietnam, the country is moving towards
a healthier lifestyle. People are more open to preventive health care and early
treatment, which increases the demand for preventive health care and wellness
products.
Vietnam
pharmaceuticals market has the potential to be one of the fastest growing in
the world. However, there are several factors that impede the growth of the
industry. Pricing and affordability are two of the most important factors that
affect the demand for pharmaceutical products. The Vietnamese market is price
sensitive. As a result, manufacturers must strike a balance between
profitability and make sure that medicines are available to all parts of
society.
Counterfeit
and substandard medicines continue to be a major issue in Vietnam’s
pharmaceutical market. Not only does counterfeiting and low-quality products
pose a threat to public health, but they also have a negative impact on
consumer confidence in the pharmaceutical industry. Consumers are more
suspicious of buying medicines, even if they are from reputable sources,
because they are worried about buying fake products.
Favorable
regulatory reforms will be one of the main drivers of the pharmaceutical market
growth in Vietnam. The government’s efforts to simplify and clarify
pharmaceutical rules will attract foreign investment and increase local
production. Improved IPR enforcement will encourage multinational
pharmaceutical companies to invest in R&D in Vietnam, which in turn will
bring new innovative drugs to the market. Faster and more effective drug
approval procedures will reduce the time taken by pharmaceutical products to
reach the market, boosting competition and creating a more vibrant industry
environment.
As
Vietnam’s economy continues to expand, the country’s government’s focus on
improving healthcare infrastructure will continue to grow. As healthcare
spending increases, the pharmaceutical market is expected to experience a huge
growth. As more resources are allocated to the healthcare sector, the ability
to acquire and deliver essential medicines will improve, making them more
accessible to patients across the nation. Furthermore, the expansion of health
insurance coverage is expected to further improve the affordability of
medicinal products, boosting demand for pharmaceuticals in both rural and urban
areas.
The
middle-class population in Vietnam is growing rapidly due to rising incomes and
urbanization. As a result, the middle-class population will lead to an increase
in healthcare spending and a higher demand for quality pharmaceutical products.
The increasing purchasing power of the middle-class will increase the demand
for branded and novel medicines, prompting pharmaceutical companies to invest
more in product development and marketing.
With
a growing economy and a supportive regulatory environment, there is an impetus
for both local and international pharmaceutical companies to invest in research
and development activities. By focusing on R&D, companies can introduce
novel drugs and therapies to address unmet medical needs in Vietnam and
potentially export these products to other markets. Government incentives and
public-private partnerships can further fuel research and innovation in the
pharmaceutical sector.
Technology
is revolutionizing the pharmaceutical sector. Precision medicine, personalized
treatments, and the use of AI in drug development and clinical trials are just
a few of the technological breakthroughs that will revolutionize the
development and delivery of drugs to patients. Vietnamese pharmaceutical
companies that adopt these technologies will be able to offer innovative
therapies and improve patient outcomes.
Growing
Prevalence of Chronic Diseases
Vietnam’s
chronic diseases are expected to have a significant impact on the
pharmaceuticals market growth in the next few years. Like many developing
countries, Vietnam is going through a period of demographic and epidemiological
transformation, with a growing burden of chronic diseases such as
cardiovascular disease, diabetes, cancer, and respiratory diseases. Top 10
causes of deaths in Vietnam are stroke, ischemic heart disease, lung cancer,
chronic obstructive pulmonary disease, Alzheimer’s, diabetes, cirrhosis, road injuries,
lower respiratory function, and tuberculosis. These require different
pharmaceuticals for the treatment.
In
Vietnam, strokes cause the most deaths with an estimated 200,000 new cases
reported each year. 50% of those cases are fatal and 90% of survivors
experience post-stroke effects, such as cognitive disorders, impaired mobility,
and speaking or swallowing problems.Cardiovascular diseases (CVDs), which
includes strokes and ischemic heart disease, accounts for 31% of causes of
deaths, equivalent to about 170,000 annual cases.
Pharmaceutical
companies in the domestic market will focus on increasing their production
capacity, introducing new and cutting-edge drugs, and partnering with
international pharmaceutical companies to expand their product lines. Foreign
pharmaceutical companies, on the other hand, will recognize the market
potential in Vietnam and will invest in local production, distribution
channels, and research partnerships. This synergy will further drive market
growth.
Improving
Vietnam’s Healthcare Infrastructure
Vietnam’s
expanding healthcare infrastructure is a key factor driving the growth of the
country’s pharmaceuticals market over the next few years. As Vietnam’s economy
continues to grow at a rapid pace, there has been a growing emphasis on
strengthening its healthcare system. Significant investments have been made to
modernize medical facilities, expand access to healthcare, and improve the
quality of care throughout the country. This increase in healthcare
infrastructure development not only improves the health of the Vietnamese
people, but also prepares the ground for a growing pharmaceuticals industry.
According
to the AmCham Vietnam, Vietnam’s healthcare expenditures per capita is expected
to grow 9.2 percent per year over 2009 – 2025, reaching USD 262 by 2025 (USD 26
billion of the total market), equivalent to 5.8% of the country’s GDP.
The
improved healthcare facilities have led to an increase in the demand for
pharmaceuticals and medical supplies. As a result, local and foreign
pharmaceutical companies can thrive. With improved access to medical care, the
burden of chronic diseases can be managed more efficiently, thus increasing the
need for a steady supply of drugs. With the growing awareness of healthcare,
and the increasing disposable income of the middle class, there is a growing
demand for modern and creative pharmaceutical solutions. Consumer behavior has
changed significantly, leading to the development of the pharmaceutical market
in Vietnam.
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Market
Segmentation
The
Vietnam pharmaceuticals market can be segmented by drug type, product type,
application, distribution channel, and region. By drug type, the Vietnam
pharmaceuticals market can be segmented into generic drugs and branded drugs.
Based on product type, the Vietnam pharmaceuticals market is divided into
prescription drugs and over-the-counter drugs. Based on application, the
Vietnam pharmaceuticals market is divided into cardiovascular, musculoskeletal,
oncology, anti-infective, metabolic disorder, and others. Based on distribution
channel, the Vietnam pharmaceuticals market is divided into retail pharmacy,
hospital pharmacy, and e-pharmacy. Based on regions, the Vietnam
pharmaceuticals market is divided into Southern, Northern, and Central regions.
Market
Players
Bayer
Vietnam Ltd., DHG Pharmaceutical Joint Stock Company, Traphaco Joint Stock
Company, Ha Tay Pharmaceutical Joint Stock Company, Domesco Medical Import
Export Joint Stock Corporation (DOMESCO), OPC Pharmaceutical Joint Stock
Company, Sanofi SA, Mekophar Chemical and Pharmaceutical JSC, Imexpharm
Corporation, and PYMEPHARCO Joint Stock Company (STADA Arzneimittel AG) are
some of the leading companies operating in the market.
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Attribute
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Details
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Market Size Value in FY2022
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USD 6.98 Billion
|
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Revenue Forecast in FY2028
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USD 11.27 Billion
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Growth Rate
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8.19%
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Base Year
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2022
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Historic Data
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2018 – 2022
|
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Estimated Year
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2023
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Forecast Period
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2024 – 2028
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Quantitative Units
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Revenue in USD Billion, , and CAGR for 2018-2022 and 2023-2028
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Report Coverage
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Revenue forecast, Volume forecast company
share, competitive landscape, growth factors, and trends
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Segments Covered
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Drug Type
Product Type
Application
Distribution Channel
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Regional Scope
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Southern; Northern; Central
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Key Companies Profiled
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Bayer Vietnam Ltd., DHG Pharmaceutical Joint Stock Company,
Traphaco Joint Stock Company, Ha Tay Pharmaceutical Joint Stock Company,
Domesco Medical Import Export Joint Stock Corporation (DOMESCO), OPC Pharmaceutical
Joint Stock Company, Sanofi SA, Mekophar Chemical and Pharmaceutical JSC,
Imexpharm Corporation, PYMEPHARCO Joint Stock Company (STADA Arzneimittel AG)
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Customization Scope
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10% free report customization with
purchase. Addition or alteration to country, regional & segment scope.
|
|
Pricing and Purchase Options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
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Delivery Format
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PDF and Excel through Email (We can also provide the editable
version of the report in PPT/Word format on special request)
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Report
Scope:
In
this report, Vietnam pharmaceuticals market has been segmented into following
categories, in addition to the industry trends which have also been detailed
below:
- Vietnam
Pharmaceuticals Market, By Drug Type
- Generic
Drugs
- Branded
Drugs
- Vietnam
Pharmaceuticals Market, By Product Type
- Prescription
Drugs
- Over-The-Counter
Drugs
- Vietnam
Pharmaceuticals Market, By Application
- Cardiovascular
- Metabolic
Disorder
- Oncology
- Anti-infective
- Musculoskeletal
- Others
- Vietnam
Pharmaceuticals Market, By Distribution Channel
- Retail
Pharmacy
- Hospital
Pharmacy
- Vietnam
Pharmaceuticals Market, By Region
- Southern
- Northern
- Central
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in Vietnam pharmaceuticals market.
Available
Customizations:
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).