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

Economic Development

Vietnam's remarkable economic expansion, with total health expenditure projected to reach $23.3 billion by 2025, is driving a surge in pharmaceutical consumption. As Vietnam progresses toward its goal of a GDP per capita of $7,000 by 2030, there is an augmented capacity and inclination among its populace to allocate resources towards healthcare, with per capita health spending expected to hit $262 by 2025.

This propensity extends to a diverse array of healthcare products, with individual spending on medical care reaching VND 3.5 million (US$140) in 2024. The broadening accessibility of health insurance, which covered about 93.4% of the population in 2024, coupled with government efforts like the National Strategy for developing the pharmaceutical industry to 2030, synergistically catalyze the expansion of the sector. Initiatives like the amended Law on Pharmacy, effective July 1, 2025, which simplifies drug registration and allows online sales of non-prescription drugs, not only enhance healthcare accessibility but also instill confidence in consumers, fostering a conducive environment for sustained growth.

Government Policies and Regulatory Reforms

Government policies and regulatory reforms exert significant influence on shaping Vietnam's pharmaceutical market dynamics. The government's "National Strategy for Developing the Pharmaceutical Industry to 2030" dedicates steadfast commitment to fostering domestic pharmaceutical production, with efforts to refine regulatory frameworks and bolster intellectual property rights protection, fostering an environment conducive to investment and innovation. By prioritizing the promotion of domestic pharmaceutical manufacturing, the government aims to reduce reliance on imported drugs and achieve technology transfer for at least 100 originator drugs by 2030, with the goal for locally made medicines to account for 80% of market volume.

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. The amended Law on Pharmacy, effective July 1, 2025, enhances medication availability by legalizing online sales for non-prescription drugs and shortening reference-based drug registration approvals to nine months. These initiatives incentivize pharmaceutical companies to invest in manufacturing, particularly for affordable generic drugs needed to treat diseases like cancer, which records 165,000 new cases in Vietnam annually. 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 endeavors to enhance its healthcare infrastructure and widen service access are pivotal drivers for its pharmaceutical market. Substantial investments across its 1,665 hospitals, along with clinics and pharmacies, are creating an environment ripe for pharmaceutical companies to expand their reach. This strategic focus helps meet the needs of a broader patient spectrum. By improving facilities, the country not only boosts pharmaceutical distribution but also addresses the growing healthcare demands of an increasingly diverse population, laying a strong foundation for sustained market growth and improved public health outcomes.

As part of the master plan for Vietnam's healthcare network from 2021 to 2030, the country committed to upgrading six key hospitals - Bach Mai, Viet Nam-Germany Friendship, Hue Central, Cho Ray, and the 108 and 175 Military Hospitals to meet international standards. This initiative, designed to reduce medical tourism, is part of a broader effort to improve healthcare access, starting from a 2023 baseline of 12.5 doctors and 32 hospital beds per 10,000 people. The official targets aim for 33 hospital beds, 15 doctors, 3.4 pharmacists, and 25 nurses per 10,000 people by 2025, with these numbers expected to increase to 35 hospital beds and 19 doctors by 2030.

Looking ahead to 2050, Vietnam’s healthcare sector aims to build numerous modern facilities that meet international benchmarks, with long-term goals of 45 hospital beds, 35 doctors, and 90 nurses per 10,000 people. Alongside public sector improvements, there is a strong push to expand private healthcare, exemplified by facilities like FV Hospital, which achieved its fourth JCI accreditation in April 2025 with a 98% compliance score. Private hospital beds are projected to make up at least 10% of the total by 2025, rising to 15% by 2030 and reaching 25% by 2050, further broadening healthcare options and opportunities for pharmaceutical distribution.

The integration of cutting-edge technologies like electronic medical records and telemedicine is another crucial factor optimizing healthcare delivery. These advancements enhance the efficiency and accuracy of patient care, directly augmenting the demand for pharmaceutical products. By streamlining administrative processes and enabling more personalized treatment regimens, technology empowers healthcare providers to deliver more effective care. This seamless integration is a key component in propelling the growth and development of Vietnam’s pharmaceutical market while simultaneously improving health outcomes for the population.

Disease Burden and Epidemiological Shifts

The escalating incidence of chronic diseases, infectious ailments, and lifestyle-related disorders is a primary catalyst for the burgeoning demand for pharmaceutical products across Vietnam. Non-communicable diseases (NCDs) accounted for 81% of deaths in 2019, with leading causes including stroke, heart disease, and cancer. This notable shift in disease patterns, marked by a surge in conditions like diabetes and cancer, presents pharmaceutical companies with lucrative opportunities to innovate and introduce treatments tailored to address these prevalent health concerns, underscoring the need for effective pharmaceutical interventions.

The persistent burden of infectious diseases also remains a formidable challenge in Vietnam's healthcare landscape. In 2021, the country reported an estimated 169,000 tuberculosis cases and is implementing a strategic plan to eliminate TB by 2030. Conditions such as dengue fever and HIV/AIDS continue to pose significant public health threats, 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.

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. In October 2024, the draft version of the Pharmacy Law is expected to drive technological advancements and innovation in Vietnam’s pharmaceutical market by encouraging companies to prioritize the country for new drug launches. The revised Pharmacy Law, to be presented in the ongoing National Assembly session, aims to improve public access to new medicines. Over the past decade, only 9% of new drugs were introduced in Vietnam, a figure significantly lower than other Asia-Pacific nations (20%).

The draft law seeks to streamline approval processes and introduce a reliance mechanism to speed up pharmaceutical recognition. These changes are designed to enhance efficiency, allowing Vietnamese patients to access new medicines more quickly, supporting innovation and competitiveness in the 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 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 May 2025, Livzon Pharmaceutical Group acquired a controlling stake of about 64.81 percent in Imexpharm Pharmaceutical Joint Stock Company for more than USD 220.6 million through its Singapore subsidiary, with SK Investment Vina III selling its 47.69 percent stake. Completion is expected within nine months.
• In January 2025, Binh Viet Duc Co., Ltd. began construction of Vietnam’s first plasma-based biopharmaceutical plant in the Thu Duc High-Tech Park, Ho Chi Minh City, with an investment of about USD 114 million. The facility includes plasma fractionation, vaccine and insulin production, anesthetic manufacturing, and cancer drug production, with completion scheduled for February 2026.
• In May 2025, Imexpharm announced the Cat Khanh pharmaceutical complex in Dong Thap Province with an investment of about USD 58 million, targeting 1.4 billion products at full operation in 2028–2030 under WHO-GMP and EU-GMP standards and supported by a 146-product R&D pipeline. Groundbreaking is expected by late 2025.
• In January 2025, Docquity partnered with the Ho Chi Minh City Center for Disease Control to improve healthcare professional education in Vietnam through a preventive medicine channel to be developed over three years.
• In 2024, ASKA Pharmaceutical of Japan increased its ownership in Hatay Pharmaceutical Joint Stock Company to nearly 40 percent and continued seeking more shares.
• In 2024, KWE Beteiligungen AG of Germany expanded its stake in Binh Dinh Pharmaceutical Medical Equipment JSC to more than 10 percent as part of its long-term investment approach.
• In September 2024, Lotus Pharmaceutical acquired the trademark, marketing authorization, and manufacturing expertise for Alpha Choay from Sanofi in Vietnam and Cambodia, gaining full management of the product’s operations.
• In July 2024, Imexpharm Pharmaceuticals JSC and Deloitte Vietnam launched an ERP upgrade project using SAP S/4HANA to improve efficiency, along with plans to integrate IFRS into the accounting system and plant maintenance module.
• In March 2024, Korean Genuone and Imexpharm formed a partnership focused on drug registration, manufacturing, and distribution in Vietnam, supported by technology transfer to strengthen Imexpharm’s future production capabilities.

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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