Vietnam’s pharmaceutical market is a promising playground in the Asian pharmaceutical market. With the demand for health care, people’s incomes have improved, along with rapid urbanization, creating conditions for Vietnam’s pharmaceutical market to develop.

Vietnam’s pharmaceutical market is among the top growth in asia

According to statistics from the Ministry of Health, Vietnam’s pharmaceutical market reached more than 6.9 billion USD in 2021. BMI Research forecasts that Vietnam’s pharmaceutical market will reach 16.1 billion USD by 2026, a compound growth rate of 11% VND. Approximately 30% of Vietnamese people buy expensive medicines, a number that is increasing. The scale of the pharmaceutical market in Vietnam is very large with a population of more than 98 million people and an elderly population with an approximate life expectancy of 76 years.

One of the other opportunities for Vietnam’s pharmaceutical market to develop is the rapid urbanization rate. In Vietnam, the urbanization rate reached 37% from 2020 to 2021, the urban population is approximately 36.6 million people. Vietnam’s pharmaceutical industry system is developing with 250 manufacturing plants, 200 import-export enterprises, 43,000 distribution companies and 62,000 retail wholesale units.

Vietnam’s pharmaceutical market is potential but has not developed strongly

Vietnam is highly dependent on imported pharmaceutical supplies, of which China and India account for more than 85%.  Vietnam has a tropical monsoon climate, potential for the development of medicinal plants. However, there is still no national-scale medicinal growing area, only a few local producers are growing medicinal herbs but only meet a small amount of demand. Vietnam’s pharmaceutical production capacity only meets 53% of domestic demand. According to the General Statistics Office, Vietnam spent nearly $2.8 billion in 2018 to import pharmaceuticals and increased to $4 billion in 2021.

Opportunity to participate in Vietnam pharmaceutical market

With the right business orientation, domestic and international pharmaceutical companies can gain many advantages when participating in the Vietnamese pharmaceutical market because there are not many pharmaceutical companies competing.  However, the major challenge for foreign pharmaceutical companies operating in Vietnam is that they are not allowed to participate in direct distribution into the Vietnamese pharmaceutical market directly, but must sell products through domestic pharmaceutical distributors. Added to this, delays in approving new drugs are also a limitation.

Most pharmaceuticals still have to be imported, including raw materials, which is the status quo in Vietnam, which creates opportunities for companies to participate in the supply chain of the medical industry in general and the pharmaceutical market in particular. To penetrate the Vietnamese pharmaceutical market, foreign enterprises need an introduction, connection and reputation channel with domestic enterprises. Vietnam International Medical Exhibition – Pharmedi Vietnam is a place to connect leading prestigious pharmaceutical enterprises in Southeast Asia. The event is held annually with more than 800 booths, attracting many participating countries such as China, Germany, Japan, Korea to attend.

In addition to the goal of connecting trade in the medical industry, the exhibition also enhances knowledge, skills and resources through seminars and seminars.  Companies operating in the field of Health and Pharmaceuticals do not ignore this potential event, quickly register to receive many incentives from the organizers.

Source: General