The Pharmaceutical Industry in Vietnam: Market Overview, Growth Drivers, and Forecast for 2025

Key Takeaways

Vietnam’s pharmaceutical market is projected to reach USD 12.12 billion by 2030, driven by rising healthcare demand and consumer spending.
Regulatory reforms and investment incentives are accelerating domestic manufacturing and foreign direct investment in the pharma sector.
Growth opportunities lie in generics, branded drugs, e-pharmacies, and advanced therapies targeting chronic and non-communicable diseases.

The pharmaceutical industry in Vietnam is rapidly evolving, positioning itself as one of Southeast Asia’s most dynamic healthcare sectors. As the nation experiences significant demographic shifts, rising incomes, and ambitious government initiatives, the demand for pharmaceuticals is surging across both urban and rural populations. This blog provides an in-depth market overview, analyzing the current structure, key growth drivers, and future forecasts that collectively shape Vietnam’s pharmaceutical landscape heading into 2025.

The Pharmaceutical Industry in Vietnam: Market Overview, Growth Drivers, and Forecast for 2025

Vietnam’s healthcare sector has witnessed robust expansion fueled by a growing middle class, an aging population, and an increasing prevalence of chronic diseases such as cardiovascular ailments, diabetes, and cancer. These factors have intensified the demand for a diverse range of pharmaceutical products, spanning generic medicines, branded drugs, and specialized therapies. At the same time, regulatory reforms, including the 2024 Pharmacy Law amendment, are transforming the industry’s operational and investment environment, encouraging innovation, foreign direct investment (FDI), and local manufacturing capabilities. The government’s commitment to achieving universal healthcare coverage by 2025 further broadens market access, creating new opportunities for pharmaceutical companies.

This comprehensive analysis explores Vietnam’s pharmaceutical market segmentation, highlighting the dominance of over-the-counter (OTC) products and the accelerating growth of prescription drugs driven by technological advancements and increased healthcare spending. Additionally, it examines the competitive landscape shaped by expanding pharmacy chains, rising e-pharmacy platforms, and strategic mergers and acquisitions. The role of digital transformation, from AI-driven healthcare solutions to e-commerce in pharmaceuticals, is also addressed as a critical factor redefining distribution channels and patient engagement.

Looking ahead, this blog offers detailed forecasts and insights into market trends, including projected market size growth, investment flows, and evolving consumer behavior. It further identifies key challenges such as import dependency, counterfeit drug risks, and regulatory complexities, while outlining strategic opportunities for domestic manufacturers and international investors alike.

For stakeholders seeking to navigate Vietnam’s pharmaceutical industry, understanding these multifaceted developments is essential. This blog aims to equip readers with a nuanced perspective of the market’s current state and future trajectory, making it a valuable resource for policymakers, investors, healthcare providers, and industry professionals poised to capitalize on Vietnam’s burgeoning pharmaceutical sector by 2025 and beyond.

The Pharmaceutical Industry in Vietnam: Market Overview, Growth Drivers, and Forecast for 2025

Executive Summary
Overview of Vietnam’s Economic Landscape
Market Size and Valuation
Market Segmentation Analysis
Competitive Landscape
Key Growth Drivers Shaping the 2025 Pharmaceutical Market
Challenges and Strategic Considerations
Forecast and Outlook: Strategic Implications for 2025 and Beyond

1. Executive Summary

Vietnam’s pharmaceutical sector is entering 2025 with a strong upward trajectory, driven by structural reforms, demographic tailwinds, and increasing healthcare expenditures. As a frontier healthcare market in Southeast Asia, Vietnam is strategically positioned to emerge as a critical hub for pharmaceutical manufacturing, retail, and investment.

Vietnam Pharmaceutical Market Outlook for 2025 and Beyond

Market Valuation:
- In 2024, the Vietnamese pharmaceutical market was valued at USD 7.60 billion (VND 154.1 trillion).
- By 2025, the market is projected to reach VND 166.8 trillion, continuing a trend of steady expansion.
- Long-term forecasts place the market at:
  - USD 12.12 billion by 2030 (CAGR: 7.96%)
  - USD 14.07 billion by 2033 (CAGR: 7.34% from 2025–2033)
Per Capita Pharmaceutical Spending:
- 2022: USD 75
- 2025: Projected to surge to USD 163, reflecting enhanced healthcare consumption and awareness.
Retail Pharmacy Segment:
- 2024: USD 8.9 billion
- 2033: Forecasted to hit USD 16.8 billion (CAGR: 6.7% from 2025–2033)

Table: Vietnam Pharmaceutical Market Growth (2024–2033)

Attribute	2024	2025	2030	2033	CAGR (2025–2030)	CAGR (2025–2033)
Market Value (USD Billion)	7.60	–	12.12	14.07	7.96%	7.34%
Market Value (VND Trillion)	154.1	166.8	–	–	–	–
Per Capita Spending (USD)	75 (2022)	163	–	–	–	–
Pharmacy Retail Market (USD Billion)	8.9	–	–	16.8	–	6.7%

Note: “–” indicates data not explicitly stated.

Key Growth Drivers Shaping Vietnam’s Pharma Landscape

Demographic Shift & Aging Population:
- Vietnam’s population is aging rapidly, increasing the demand for chronic disease treatments, geriatric care, and long-term pharmaceutical interventions.
Rising Middle-Class and Disposable Income:
- A growing middle class is contributing to higher healthcare spending, with increasing demand for branded, OTC, and specialty drugs.
Government Policy and Universal Healthcare Commitment:
- The Ministry of Health aims to achieve 95% universal healthcare coverage by 2025, driving broader pharmaceutical accessibility.
Regulatory Reforms – Pharmacy Law (Effective July 1, 2025):
- Key Amendments:
  - Faster drug registration timelines
  - Expanded market access for Foreign-Invested Enterprises (FIEs)
  - Legal facilitation of e-pharmacy channels and online medicine retailing
Prevalence of Non-Communicable Diseases (NCDs):
- Rising incidence of diabetes, cardiovascular conditions, and cancer is stimulating long-term demand for pharmaceuticals and biologics.

Chart: Vietnam’s Key Pharmaceutical Growth Catalysts

| Growth Driver                     | Impact Level | Explanation |
|----------------------------------|--------------|-------------|
| Aging Population                 | High         | Increases chronic medicine demand |
| Disposable Income Growth         | High         | Higher healthcare spending patterns |
| Healthcare Digitization          | Medium       | Expands e-pharma and health tech |
| Regulatory Reforms (Pharmacy Law)| High         | Improves foreign access and approval timelines |
| Universal Healthcare Coverage    | High         | Boosts national drug consumption |

Structural and Competitive Challenges in the Market

While the outlook is promising, Vietnam’s pharmaceutical industry faces several systemic bottlenecks:

Heavy Dependence on Imports:
- Domestic production fulfills only:
  - 53% of pharmaceutical demand by volume
  - 46.3% by value
- Indicates significant gaps in API manufacturing, local formulation capabilities, and biotech infrastructure
Prolonged Drug Approval Timelines:
- Approval for new drugs historically takes up to 5 years, lagging behind regional peers like Thailand and Malaysia.
Pharmaceutical Retail Market Fragmentation:
- Despite consolidation efforts, the retail sector remains highly competitive, with major chains facing thinning margins and M&A pressures.
Antimicrobial Resistance (AMR):
- Overuse and self-medication are accelerating AMR risks, requiring regulatory tightening, prescription controls, and public health interventions.

Matrix: SWOT Analysis of Vietnam’s Pharma Industry (2025)

Strengths	Weaknesses
Rising healthcare demand	Inadequate local R&D and drug manufacturing
Favorable demographic profile	Regulatory bottlenecks (drug approvals)
Government incentives and policy backing	Overreliance on imports

Opportunities	Threats
FDI growth in local production and innovation	Antimicrobial resistance (AMR)
E-commerce and digital health integration	Global supply chain disruptions
Aging population and universal coverage	Margin pressure in retail segment

Strategic Recommendations for Stakeholders

To unlock the full potential of Vietnam’s pharmaceutical sector by 2025 and beyond, the following priorities are recommended:

Attract High-Quality FDI:
- Encourage foreign players to invest in local drug manufacturing, biotech R&D, and API production through incentives and regulatory clarity.
Accelerate Technology Transfer:
- Strengthen collaborations between multinational pharma companies and local enterprises to improve knowledge sharing and production efficiency.
Enhance Domestic Production Capabilities:
- Support innovation hubs, GMP-compliant factories, and university-industry linkages to nurture homegrown pharma innovation.
Strengthen Supply Chain and Distribution Oversight:
- Embrace blockchain-based traceability, digital inventory systems, and centralised procurement to reduce risks of counterfeit and stockouts.
Regulatory Modernisation:
- Fully implement the new Pharmacy Law (2025), streamline drug registration processes, and incentivise market entry of essential drugs.

Conclusion: Vietnam’s Pharma Future is Bright but Requires Deep Investment

The Vietnamese pharmaceutical industry stands at a transformative crossroads. Bolstered by population dynamics, rising healthcare expenditure, and ambitious policy support, the country is moving steadily toward becoming a regional pharmaceutical hub. However, significant investment in local capability building, supply chain modernisation, and regulatory agility will be required to reduce foreign dependency and meet domestic demand sustainably.

Vietnam’s pharmaceutical future will be defined by how effectively it balances market liberalisation, domestic innovation, and healthcare equity—setting a compelling blueprint for emerging healthcare economies across Asia.

2. Overview of Vietnam’s Economic Landscape

Vietnam’s pharmaceutical sector in 2025 is deeply influenced by a blend of economic resilience, rising consumer purchasing power, expanding healthcare access, and substantial infrastructural investments. These macroeconomic and healthcare trends collectively shape the nation’s potential as an emerging pharmaceutical powerhouse in Southeast Asia.

Vietnam’s Economic Performance and Middle-Class Expansion

Macroeconomic Highlights

Vietnam remains one of Asia’s most dynamic economies, exhibiting consistent and broad-based growth.
As of 2023:
- Population: Approximately 100.4 million
- Gross Domestic Product (GDP): USD 429.72 billion
- GDP Growth Rate: 5.0%, highlighting continued post-pandemic resilience
Forecasts for 2025 GDP Growth:
- IMF: 5.2%
- ADB: Ranges between 6.3% and 6.6%
- Despite slight moderation, Vietnam maintains one of the strongest growth trajectories in ASEAN.
Inflation Forecast (2025): Estimated to decline to 3.9%, reinforcing economic stability and consumer confidence.

Rising Disposable Incomes and the Emergence of a Health-Conscious Middle Class

Household disposable income is projected to reach USD 7,500 by 2030, up from lower baselines in the 2010s.
Compound Annual Growth Rate (CAGR) for disposable income:
- 9.0% in VND terms (2020–2024)
- 7.9% in USD terms (2020–2024)
Middle-Class Expansion:
- Grew from 13% of the population in 2021
- Forecasted to reach 26% by 2026
- This segment is increasingly prioritizing:
  - Premium healthcare services
  - Branded and specialty medications
  - Health insurance and wellness solutions

Chart: Vietnam’s Middle-Class Growth vs. Healthcare Demand

matlabCopyEdit| Year | Middle-Class % of Population | Key Impact on Pharma Demand      |
|------|------------------------------|----------------------------------|
| 2021 | 13%                          | Entry-level branded drug demand  |
| 2023 | ~19%                         | Increased OTC and chronic care   |
| 2026 | 26% (projected)              | Demand for specialty and biologics|

Vietnam’s Healthcare Expenditure and Infrastructure: Pillars of Pharma Demand

Current Spending Trends and Coverage Expansion

Healthcare Expenditure (2019): USD 17 billion, representing 6.6% of GDP
2021 Data:
- Healthcare expenditure: 4.59% of GDP
- Per capita spending: USD 172.55
Annual Growth Rate of Healthcare Spending (2010–2020): 11% average, indicating consistent government prioritization
Universal Healthcare Coverage Goals:
- 95% national coverage target by 2025
- 87% coverage was already achieved by mid-2018
- Broader access → greater consumption of both essential and specialized pharmaceutical products

Table: Vietnam’s Healthcare System Performance Metrics

Indicator	Current Value	2025 Target
Hospital Beds per 10,000 People	~28 (est.)	33
Doctors per 10,000 People	~12	15
Nurses per 10,000 People	~20	25
Pharmacists per 10,000 People	~2.5	3.4
Private Hospital Beds (% of Total)	~7–8%	At least 10%

Healthcare Infrastructure Modernisation and the Role of PPPs

The government is scaling Public-Private Partnerships (PPPs) to:
- Expand hospital networks
- Upgrade outdated facilities
- Modernize diagnostic and surgical equipment
- Elevate training standards for medical professionals
Private Sector Participation:
- A growing ecosystem of private clinics and hospitals is emerging in Tier 1 and Tier 2 cities.
- Private healthcare investments are increasingly focused on:
  - Specialty care
  - Diagnostic labs
  - Outpatient surgery and intensive care units

Matrix: Drivers and Bottlenecks in Vietnam’s Healthcare System

Drivers	Bottlenecks
Government spending on universal healthcare	Overcrowded public hospitals
Rising per capita income	Obsolete medical equipment in public facilities
Expanding private sector partnerships	Shortage of trained doctors and nurses
Middle-class demand for higher service quality	Limited rural access to advanced care
International-standard hospital investments	High outbound medical tourism due to local capacity gaps

Challenges Undermining Systemic Efficiency

Despite visible progress, Vietnam’s healthcare system faces persistent structural limitations that indirectly affect pharmaceutical accessibility and distribution:

Overcrowding and Infrastructure Strain:
- Major urban hospitals (e.g., in Ho Chi Minh City and Hanoi) are chronically overloaded, often serving patients from multiple provinces.
Outdated Medical Equipment:
- Many public institutions operate with obsolete machinery, hindering effective diagnosis and treatment.
- Critical shortages in ICU beds, surgical theatres, and imaging devices remain prevalent.
Human Resource Deficit:
- Medical professionals are in short supply, especially in rural and peri-urban zones.
- Doctors and nurses work under high-stress conditions with low remuneration, resulting in burnout and workforce attrition.
Outbound Medical Tourism:
- Over 40,000 Vietnamese travel abroad annually for treatment.
- Estimated USD 2 billion in annual medical tourism expenditure due to perceived gaps in domestic service quality and technology.

Implications for the Pharmaceutical Sector

Domestic Pharmaceutical Demand Surge:
- As more patients remain in-country for treatment, demand for advanced pharmaceuticals and biologics will escalate.
- Specialized drugs for oncology, cardiology, endocrinology, and rare diseases will see higher uptake.
Foreign Pharma Opportunities:
- Gaps in local manufacturing capabilities, combined with rising expectations, create substantial entry points for:
  - Global pharmaceutical suppliers
  - Medical technology companies
  - API manufacturers
Digital Health and E-Pharmacy Growth:
- Urban populations are embracing telemedicine, mobile health apps, and online pharmaceutical retail, providing new channels for medicine distribution.

Conclusion: Vietnam’s Healthcare Backbone is Paving the Way for a Pharmaceutical Renaissance

Vietnam’s evolving economic and healthcare landscape presents an unprecedented opportunity for pharmaceutical market expansion in 2025 and beyond. As income levels rise and access to medical services widens, the nation is transitioning from a low-cost generics market to a diversified, innovation-driven pharmaceutical ecosystem.

Strategic investments in infrastructure, human capital, and digital health, combined with targeted foreign partnerships, will be critical in unlocking the sector’s full potential. For pharmaceutical companies—both local and international—Vietnam represents not just a market, but a long-term strategic frontier in the ASEAN region.

3. Market Size and Valuation

Vietnam’s pharmaceutical sector in 2025 is set to enter a transformative growth phase, underpinned by a confluence of economic, demographic, and healthcare policy shifts. The nation’s evolving demand for medical products, driven by a burgeoning middle class and greater healthcare access, is positioning Vietnam as one of Southeast Asia’s most promising pharmaceutical markets.

Market Size and Growth Outlook

Key Market Valuations

2024 Market Size:
- Valued at USD 7.60 billion
- Equivalent to approximately VND 154.1 trillion
2025 Forecast:
- Projected to reach VND 166.8 trillion, indicating strong year-on-year expansion
Long-Term Forecasts:
- USD 12.12 billion by 2030
  - Implies a Compound Annual Growth Rate (CAGR) of 7.96%
- USD 14.07 billion by 2033
  - Reflects a CAGR of 7.34% over the 2025–2033 period

Table: Vietnam Pharmaceutical Market Forecast (2024–2033)

Metric	2024	2025	2030	2033	CAGR (2025–2030)	CAGR (2025–2033)
Total Market Value (USD Billion)	7.60	–	12.12	14.07	7.96%	7.34%
Total Market Value (VND Trillion)	154.1	166.8	–	–	–	–
Pharmacy Retail Market (USD Billion)	8.9	–	–	16.8	–	6.7%

Note: “–” denotes projections not explicitly defined for the specified year.

Per Capita Spending: A Reflection of Rising Health Consciousness

Trajectory of Per Capita Pharmaceutical Expenditure

Historical Spending Patterns:
- 2010: USD 22.25
- 2015: USD 37.97
- 2022: USD 75
2025 Projection:
- Expected to surge to USD 163
  - Represents 117% growth in just three years
Growth Implications:
- Signals a shift from basic generics to branded pharmaceuticals, OTC supplements, and specialty care medications
- Reflects increasing health literacy, preventative care behaviour, and consumer trust in pharmaceuticals

Chart: Per Capita Pharmaceutical Spending in Vietnam (2010–2025)

| Year | Spending (USD) | Growth Factor vs 2010 |
|------|----------------|------------------------|
| 2010 | 22.25          | Base                   |
| 2015 | 37.97          | 1.7x                   |
| 2022 | 75.00          | 3.4x                   |
| 2025 | 163.00         | 7.3x                   |

Key Drivers Behind Market Expansion

Rising Disposable Incomes:
- Enhanced financial capacity among the growing middle class is allowing greater expenditure on premium pharmaceuticals and wellness solutions.
Urbanisation and Lifestyle Shifts:
- Increasing urban migration is driving demand for convenient, quick-access retail pharmaceutical models, including chain pharmacies and e-pharmacies.
Government Support and Health Coverage:
- Universal healthcare initiatives are broadening access to subsidised medicines, increasing public sector demand for pharmaceuticals.
Private Sector Expansion:
- Rapid expansion of private clinics, hospitals, and outpatient centres is fuelling demand for high-quality pharmaceutical inventory.
Improved Retail Infrastructure:
- Pharmacy retail modernisation is reducing distribution fragmentation, enhancing drug availability in both urban and rural areas.

Retail Pharmacy Market: Strategic Distribution Backbone

Retail Channel Performance and Outlook

2024 Valuation: Estimated at USD 8.9 billion
2033 Projection: Anticipated to grow to USD 16.8 billion
CAGR (2025–2033): Estimated at 6.7%
Growth Catalysts:
- Franchise pharmacy chains are rapidly replacing fragmented mom-and-pop stores
- Expansion of e-commerce and mHealth platforms is redefining access and distribution models
- Integration with diagnostics and telemedicine services is adding value to retail offerings

Matrix: Factors Accelerating Retail Pharmacy Growth

Growth Enabler	Impact	Explanation
Urban retail chain expansion	High	Improved inventory management and customer experience
Mobile and e-pharmacy platforms	Medium to High	Growing digital adoption, especially in Tier 1 and 2 cities
Consumer demand for convenience	High	Shift towards 24/7 pharmacies and home delivery services
Government retail regulation	Moderate	Encourages compliance, pricing transparency, and consolidation

Conclusion: Vietnam’s Pharmaceutical Market on the Brink of Maturity

The Vietnamese pharmaceutical market in 2025 stands as a compelling convergence of economic momentum, consumer evolution, and healthcare transformation. With per capita spending rising at a faster pace than overall market growth, it is evident that individual consumer behaviour is driving the next chapter of demand.

The expansion of the retail pharmacy segment, coupled with rising healthcare infrastructure and digital retail capabilities, is laying the groundwork for a more sophisticated, resilient, and consumer-oriented pharmaceutical market. Industry stakeholders—including manufacturers, distributors, and investors—must strategically align with these emerging trends to capitalise on Vietnam’s trajectory as a pharmaceutical growth frontier in Southeast Asia.

4. Market Segmentation Analysis

Vietnam’s pharmaceutical market is undergoing a strategic transformation, marked by evolving demand patterns, regulatory reforms, and deeper integration of global healthcare trends. As the industry matures, its segmentation structure is becoming more complex, moving beyond cost-driven consumption toward therapeutic sophistication and innovation.

Product Type Segmentation: Dominance of OTC and Generics with a Prescription-Driven Evolution

Current Market Structure by Product Type

The Vietnamese pharmaceutical landscape remains primarily price-sensitive, but structural shifts are underway:
- Over-the-Counter (OTC) Medications:
  - Account for over 70% of total market volume
  - Widely accessible without prescriptions, often used for common illnesses, self-medication, and dietary supplementation
- Generic Drugs (Branded and Unbranded):
  - Represent approximately 26% of the market
  - Fastest-growing segment, driven by:
    - Affordability
    - Government cost-containment measures
    - Widening access to health insurance coverage

Chart: Product-Type Market Breakdown (2025 Estimate)

pgsqlCopyEdit| Product Type       | Market Share (%) | Key Drivers                                   |
|--------------------|------------------|-----------------------------------------------|
| OTC                | 70%+             | Self-medication, affordability, urban access  |
| Generics           | 26%              | Public procurement, insurance usage, low cost |
| Patented Drugs     | <5% (but growing)| Imports, advanced treatment demand             |

Prescription Drugs: Accelerating Growth in a Changing Therapeutic Landscape

Growth Trajectory of Prescription Medicines

Market Value (2017): USD 3.9 billion
Projected Value (2027): USD 10.5 billion
CAGR (2017–2027): 10.3%, outpacing all other segments
Key Growth Catalysts:
- Rising incidence of chronic illnesses such as cardiovascular disease, diabetes, and cancer
- Increased demand for patented and specialty drugs imported for more advanced therapies
- Expansion of hospital infrastructure and specialist care units
- Shifts in prescribing practices due to medical education and protocol modernisation

Table: Prescription Drug Market Forecast

Metric	2017	2025 (Est.)	2027 (Est.)	CAGR (2017–2027)
Prescription Drug Sales (USD Bn)	3.9	~8.7	10.5	10.3%
% Share of Total Market	~25%	~40%	~45%	Rising steadily

Therapeutic Application Segmentation: Disease Burden Drives Demand

Vietnam’s pharmaceutical market is increasingly shaped by epidemiological transitions, particularly the rise of non-communicable diseases (NCDs). These shifts are influencing the therapeutic focus of both domestic and multinational players.

Top Application Areas by Market Relevance

Cardiovascular Diseases:
- Leading cause of mortality in Vietnam
- High demand for antihypertensives, statins, and anticoagulants
Oncology:
- Cancer prevalence rising rapidly
- Strong interest in targeted therapies and biologics
Anti-infectives:
- Remain essential for addressing bacterial and viral infections
- Growing concern about antimicrobial resistance (AMR) is pushing toward responsible usage
Musculoskeletal Disorders:
- Increasingly common in aging population
- NSAIDs, DMARDs, and calcium supplements are in high demand
Metabolic Disorders (Diabetes, Obesity):
- Diabetes prevalence reaching near-epidemic levels
- Market sees growing adoption of insulins, GLP-1 agonists, and oral hypoglycemics

Matrix: Therapeutic Area Demand Potential in Vietnam (2025–2030)

Therapeutic Area	Market Demand	Growth Potential	Notes
Cardiovascular	Very High	Strong	Aging population and lifestyle diseases
Oncology	High	Very Strong	Multinational-led innovation and hospital adoption
Anti-infectives	Moderate to High	Moderate	Public health needs, AMR risk
Musculoskeletal	Moderate	Stable	Linked to aging and mobility issues
Metabolic Disorders	High	Strong	Urbanisation, sedentary lifestyle, high sugar diets

Distribution Channel Analysis: From Traditional Pharmacies to E-Commerce Surge

Primary Distribution Models

Retail Pharmacies:
- Still account for a majority share of drug distribution
- Undergoing consolidation with the emergence of chain pharmacies
Hospital Pharmacies:
- Primarily distribute prescription drugs and specialty treatments
- Benefiting from investments in new hospitals and healthcare reform
E-Pharmacies (Online Pharmacies):
- Rapidly gaining traction due to:
  - Urban consumers’ preference for digital convenience
  - Expansion of healthtech platforms and mobile apps
  - Regulatory support under the new Pharmacy Law (2025), which enables digital sales

Chart: Emerging Distribution Channel Trends

| Channel Type       | 2024 Share | 2025–2030 Growth Potential | Notes                                  |
|--------------------|------------|-----------------------------|----------------------------------------|
| Retail Pharmacies  | ~65%       | Moderate                    | Modernisation and franchise growth     |
| Hospital Pharmacies| ~25%       | High                        | Specialty drug penetration             |
| E-Pharmacies       | ~10%       | Very High                   | Urban youth, digital access expansion  |

Strategic Outlook: A Market Shifting Toward Complexity and Innovation

As Vietnam’s pharmaceutical market continues to evolve, several key strategic implications are evident:

Multinational Entry Opportunities:
- The growing appetite for branded, high-tech therapies offers a competitive edge to firms with patent portfolios and strong R&D pipelines.
Domestic Capability Building:
- Under the amended Pharmacy Law (effective July 2025), Vietnam is prioritising:
  - Technology transfer agreements
  - Local manufacturing of high-value products
  - Public-private partnerships for capacity expansion
Specialised Therapeutics Growth:
- Prescription drugs are gradually increasing their share in total market sales, moving Vietnam toward more complex pharmaceutical profiles in line with global best practices.

Conclusion: Segmentation Strategy is Crucial to Winning Vietnam’s Pharma Market

Vietnam’s pharmaceutical market segmentation reveals an industry at the intersection of traditional drug consumption and modern therapeutic adoption. While OTC and generics remain dominant, rapid growth in prescription medicine and disease-specific therapeutics signals a paradigm shift toward healthcare sophistication.

Stakeholders must adapt by tailoring product offerings, leveraging digital distribution, and forging innovation-driven partnerships to align with Vietnam’s trajectory as a fast-modernising and high-potential pharmaceutical ecosystem in Asia.

5. Competitive Landscape

Vietnam’s pharmaceutical retail market is undergoing a profound structural evolution. The sector is transitioning from a traditionally fragmented ecosystem into a modernised, chain-led retail model underpinned by consolidation, technological integration, and strategic foreign partnerships. While rapid growth remains a defining feature, operational sustainability and innovation are emerging as key differentiators among market players.

Market Structure and Chain Store Expansion Trends

Retail Modernisation and Structural Shifts

Historically dominated by independent, small-scale pharmacies, Vietnam’s pharmaceutical retail network is now consolidating rapidly.
By Q1 2025, major chains collectively operate over 3,200 stores, reflecting a fundamental shift in distribution scale and professionalism.
This retail transformation is being shaped by:
- The rise of consumer expectations for product quality, pricing transparency, and consultation services
- Increasing preference for digitally integrated and standardised pharmacy chains
- Regulatory support for retail chain development under the new Pharmacy Law (2025)

Chart: Market Share by Key Pharmacy Chains (Q1 2025)

| Chain Name       | Stores (Q1 2025) | Market Share (Est.) | Key Notes                                           |
|------------------|------------------|----------------------|-----------------------------------------------------|
| Long Châu        | 2,000+           | ~20% (projected)     | Fastest expansion, nationwide presence              |
| Pharmacity       | 921              | Declining            | Restructuring after over-expansion                  |
| An Khang         | 326              | Shrinking            | High losses, downscaling from 500+ stores           |
| Trung Son Pharma | ~460 (by end-2025)| Growing              | Backed by Dongwha Pharm, Mekong Delta stronghold    |

Key Market Players: Strategic Positioning and Performance

Long Châu Pharmacy (FPT Retail Subsidiary)

Status: Vietnam’s largest pharmacy chain by store count and revenue
Q1 2025 Store Count: 2,000+ stores across all 63 provinces
Q1 2025 Revenue: Approx. VND 11,670 billion
- Represents a 29% YoY increase
- Contributes 69% of FPT Retail’s total revenue
Growth Strategy:
- Plans to open an additional 500 stores by the end of 2025
- Aggressively investing in digital tools, inventory management, and supply chain automation
- Targeting a 20% national market share by end-2025

Pharmacity

Status: Early pioneer in Vietnam’s pharmacy chain movement
Q1 2025 Store Count: 921, down from 1,100+ in 2022
2024 Revenue Decline: ~15%
Challenges:
- Overextended expansion strategy led to financial inefficiencies
- Currently undergoing restructuring and cost rationalisation
Outlook: Needs clear differentiation strategy, digital rebranding, and supply chain improvement to regain momentum

An Khang Pharmacy (Mobile World Group Subsidiary)

Q1 2025 Store Count: Reduced to 326 stores
2024 Financial Loss: USD 13.88 million
Cumulative Losses: VND 1,033+ billion
Key Issues:
- Lack of clear operational roadmap amid fierce competition
- Shrinking network despite parent company’s retail strength
Strategic Crossroad: Requires bold pivot, possible acquisition, or rebranding to remain viable

Trung Son Pharma

Geographic Focus: Primarily operates in the Mekong Delta
2025 Expansion Target: Reach 460 stores by year-end
Recent Developments:
- In late 2024, received USD 30 million investment from Dongwha Pharm (Korea) for a 51% stake
- In March 2025, partnered with GS25 Vietnam to pilot a convenience store-pharmacy hybrid model
Differentiators:
- Innovative retail format
- Strong regional brand equity
- Leverages Korean expertise and investment for fast-track scaling

Strategic M&A and Foreign Investment Landscape

Growing Role of Foreign Capital in Market Consolidation

Mergers & Acquisitions (M&A) and cross-border partnerships are increasingly shaping the competitive dynamics of Vietnam’s pharmaceutical retail and production sectors.

Notable Transactions and Foreign Stake Increases (2024–2025):
- ASKA Pharmaceutical (Japan) increased its stake in Hatay Pharmaceutical JSC
- KWE Beteiligungen AG (Switzerland) lifted its ownership in Bidiphar to over 10%
Implications:
- Reflects foreign interest in gaining direct market access
- Encourages vertical integration: combining retail chains with manufacturing capacity
- Supports technology transfer and R&D localisation goals aligned with Vietnamese policy

Innovation and Partnership-Driven Competitiveness

Key Foreign-Vietnamese Collaborations (2025)

Partnership	Entities Involved	Strategic Focus
Vaccine Production Tech Transfer	Sanofi & Vietnam Vaccine Company (VNVC)	Local vaccine manufacturing, pandemic preparedness
Varicella Vaccine Authorization	GC Biopharma	Fast-track regulatory clearance, pediatric focus
AI HealthTech Integration	GE HealthCare & FPT	AI-driven diagnostics, digital hospital transformation

These initiatives highlight a dual approach:
- Strengthening domestic production capabilities
- Introducing advanced therapeutics and diagnostics to Vietnamese consumers

Strategic Insights: Competitive Success Factors in 2025 and Beyond

Success Factor	Explanation
Operational Efficiency	Critical for scale sustainability in a cost-sensitive market
Digital Integration	Key to meeting Gen Z and millennial expectations for convenience and speed
Supply Chain Optimization	Ensures consistent product availability, pricing control, and inventory health
Strategic Partnerships	Accelerates innovation, regional knowledge, and regulatory navigation
Consumer Trust & Loyalty	Builds competitive moat via quality assurance and personalised consultation

Conclusion: Market Consolidation Meets Strategic Sophistication

Vietnam’s pharmaceutical retail industry in 2025 is no longer a game of scale alone. While expansion remains crucial, the next phase of market leadership will be defined by operational excellence, digital adaptability, and strategic foreign collaborations. The contrasting fortunes of Long Châu versus Pharmacity and An Khang illustrate that agility, innovation, and consumer-centric models are the real growth currencies in this dynamic market.

As foreign players deepen their involvement and domestic champions innovate their models, Vietnam’s pharmaceutical retail sector is set to become one of the most competitive and high-potential markets in Southeast Asia.

6. Key Growth Drivers Shaping the 2025 Pharmaceutical Market

Vietnam’s pharmaceutical market is being propelled by a confluence of macroeconomic, demographic, regulatory, and technological factors. These forces are creating a fertile landscape for both domestic and foreign pharmaceutical players to capitalise on the nation’s evolving healthcare needs and long-term strategic ambitions.

Favourable Demographic Transition and Socioeconomic Upliftment

Vietnam’s Aging Population: An Expanding Consumer Base for Pharmaceuticals

Vietnam’s population reached 100.4 million in 2023, with a rapidly aging demographic profile:
- Individuals aged 60 and above accounted for 10% in 2017, expected to grow to 13.7% by 2030 and 20.3% by 2050.
- The 65+ age group grew from 6.7% in 2015 to 7.9% in 2020, with projections indicating a rise to nearly 30% by 2050.
Implications for the pharmaceutical industry:
- Sharp increase in age-related conditions such as cardiovascular disease, cancer, diabetes, and arthritis
- Higher frequency of long-term medication use
- A more health-conscious elderly population with increasing ability and willingness to spend on health solutions

Rising Middle Class and Consumer Health Spending Power

Vietnam’s middle class is projected to grow from 13% (2021) to 26% (2026), a near doubling in just five years.
Disposable income growth trajectory:
- Per capita income forecast to reach USD 7,500 by 2030
- Household disposable income growing at a CAGR of 9.0% (VND terms) and 7.9% (USD terms) from 2020–2024
Impacts on pharmaceutical consumption:
- Increased demand for branded, specialized, and imported medications
- Accelerated expansion of private clinics, wellness centres, and health-tech providers
- Shift in consumer behaviour toward preventative care, nutraceuticals, and personalised health services

Government Policy Alignment and Infrastructure Development

National Pharmaceutical Development Strategy (2021–2045)

The Vietnamese government has codified its long-term commitment through a national pharmaceutical roadmap, which aims to:
- Position Vietnam as a regional pharmaceutical manufacturing hub
- Achieve 95% universal health insurance coverage by 2025
- Enhance local drug production capabilities for essential and high-tech medicines

Healthcare Infrastructure Goals for 2025

Metric	Target by 2025
Hospital beds	33 per 10,000 people
Doctors	15 per 10,000 people
Pharmacists	3.4 per 10,000 people
Nurses	25 per 10,000 people
Private hospital beds	≥ 10% of total capacity

These initiatives aim to increase both the volume and quality of care available to Vietnam’s population.
Public-Private Partnerships (PPPs) are central to mobilising capital and upgrading infrastructure, offering:
- Modern medical facilities
- Advanced diagnostic systems
- Professional training programs

Mounting Disease Burden and Clinical Demand for Modern Treatments

Rising Prevalence of Non-Communicable Diseases (NCDs)

Over 22 million Vietnamese are affected by chronic diseases, which now account for 81% of total deaths.
Breakdown of Disease Burden:

Disease Area	Estimated Cases	Health Impact & Market Implication
Hypertension	15 million	Largest share of outpatient drug consumption
Diabetes	4.5 million	Cases doubled in 10 years; rising demand for insulin and oral drugs
COPD	2 million (40+)	Growing need for respiratory therapies and devices
Cancer	354,000 cases	High demand for oncology drugs, radiology, and targeted therapy
Stroke	200,000 cases/year	High fatality; increased demand for emergency and follow-up care

Pharmaceutical companies can benefit from:
- Scaling oncology and cardiovascular pipelines
- Investing in chronic care management programs
- Expanding access to preventative therapies

Under-penetration of Innovative Drugs

Only 9% of newly developed drugs have entered the Vietnamese market over the last decade, compared to 20% in neighbouring APAC countries.
Highlights the urgent need for:
- Faster regulatory clearance
- Stronger intellectual property frameworks
- More investment in diagnostic ecosystems

Regulatory Reform as a Catalyst for Growth

Pharmaceutical Law Amendment 2024 (Law No. 44/2024/QH15)

Coming into full force on July 1, 2025, the law provides a pro-growth regulatory framework:

Key Provisions and Market Implications

Reform Area	Description	Strategic Impacts
Investment Incentives	Projects ≥ VND 3,000B receive priority support	Encourages large-scale domestic & foreign manufacturing
Foreign Enterprise Rights	FIEs allowed full control over supply chains	Improves FDI inflows, supply chain efficiency
Drug Registration Reform	Registration period cut from 12 to 9 months for certain drugs	Accelerates time-to-market for innovative drugs
Emergency Drug Approval	Critical drugs approved within 15 days	Enables rapid response to health crises
E-Commerce Regulation	Legal clarity for online retail and wholesale of drugs	Expands digital pharmaceutical ecosystems
Price Transparency Mandates	Public declaration of wholesale/retail prices to Ministry of Health	Builds trust, curbs price gouging, boosts compliance

Technological Transformation and E-Commerce Proliferation

Rise of E-Pharmacies and Digital Supply Chains

E-commerce platforms now represent a pivotal distribution channel, particularly in rural and semi-urban areas.
Enabled by regulatory support from the 2024 Pharmacy Law, Vietnam’s online pharmacy market is:
- Reducing overhead costs
- Enhancing real-time inventory control
- Improving consumer price access and delivery timelines

R&D and High-Tech Ecosystem Emergence

Vietnam aims to boost R&D spending to 2% of GDP by 2030, facilitating:
- Growth of clinical trial centres
- Expansion of biotech innovation labs
- Local development of high-value pharmaceuticals

Technology and Pharma Collaboration Highlights (2024–2025)

Partnership	Focus Area	Impact
GE HealthCare x FPT	AI-integrated diagnostics	Smart imaging and remote patient monitoring
DocMed x Hoang Duc Pharmaceutical	B2B pharmaceutical supply chain digitalisation	Reduces counterfeit risk and enhances traceability
Sanofi x VNVC	Vaccine tech transfer	Builds local vaccine resilience and export potential

These developments signal Vietnam’s readiness to emerge as a regional healthtech and pharmaceutical innovation hub.

Conclusion: Multi-Layered Growth Drivers Reinforce Long-Term Industry Potential

Vietnam’s pharmaceutical industry in 2025 is powered by a multi-dimensional growth engine:

Demographic aging and the rising middle class are expanding patient volumes and deepening healthcare sophistication.
The government’s aggressive infrastructure development and universal coverage targets are structurally increasing pharmaceutical demand.
A heavy disease burden is creating urgency for innovative treatment solutions.
Regulatory liberalisation and foreign investor facilitation are aligning domestic capabilities with global best practices.
Digital transformation is reconfiguring access, distribution, and engagement models across the value chain.

For domestic enterprises and multinational corporations alike, aligning with these macro and micro-level trends will be essential to capturing the Vietnamese pharmaceutical market’s full potential in the years ahead.

7. Challenges and Strategic Considerations

Despite the promising trajectory of Vietnam’s pharmaceutical sector, a closer examination reveals a series of structural, regulatory, and market-specific challenges that must be addressed to ensure sustainable and inclusive industry growth. At the same time, a variety of strategic opportunities—both conventional and emerging—present attractive prospects for forward-looking domestic firms and foreign investors.

Persistent Market Challenges

Overdependence on Imports and Limited Domestic Production Capacity

Vietnam’s pharmaceutical industry remains heavily reliant on imports, particularly for high-value and specialized products:
- 53% of total pharmaceutical demand by volume is met through domestic production.
- However, only 46.3% of the market by value is produced locally, reflecting a high-value gap.
- Pharmaceutical imports amounted to USD 4 billion in 2021, with continued upward trends.
Limitations of the domestic manufacturing ecosystem:
- Predominantly focused on basic generics with low R&D intensity
- Limited capital investment, outdated technology, and fragmented production capacity
- Weak local supply chains, especially in active pharmaceutical ingredient (API) sourcing

Indicator	Domestic Capacity (%)
Volume of Pharmaceutical Products	53%
Value of Pharmaceutical Products	46.3%
Domestic Production of High-Tech Drugs	<15% (Est.)

Strategic implication: Significant value continues to accrue to multinational manufacturers, especially in oncology, cardiology, and rare diseases.

Regulatory Bottlenecks and Delayed Market Entry for New Drugs

Prior to the 2024 Pharmacy Law Amendment, drug approval in Vietnam was among the slowest in the Asia-Pacific region:
- Average time for a new drug to reach market: ~5 years
  - 2.5 years for clinical trials
  - 2.5 years for government approval
Resulting in:
- Only 9% of new drugs introduced over the past decade, compared to 20% in other APAC nations
- Delayed patient access to innovative treatments
- Lower investor confidence in product lifecycle returns

Region	New Drug Penetration (Last Decade)
Vietnam	9%
Asia-Pacific Avg	20%

Counterfeit Pharmaceuticals and Supply Chain Vulnerabilities

The proliferation of counterfeit drugs is a growing risk due to:
- Expanding e-commerce platforms without sufficient verification mechanisms
- Loosely regulated online retail channels
- Inadequate enforcement of track-and-trace regulations
Other supply chain threats include:
- Raw material shortages (API dependence on India and China)
- Climate-related and geopolitical disruptions
- Workforce gaps in pharmaceutical logistics and cold chain operations
Impacts:
- Loss of consumer trust
- Health hazards and ineffective treatment outcomes
- Challenges in pharmacovigilance and regulatory compliance

Antimicrobial Resistance (AMR): A Mounting Public Health Threat

Vietnam ranks high among countries grappling with AMR, driven by:
- Widespread over-the-counter antibiotic sales
- Inconsistent prescribing practices in public and private sectors
The government has initiated the National Strategy on AMR (2023–2030, Vision 2045) to:
- Regulate antimicrobial usage
- Promote prescription-only antibiotic sales
- Implement surveillance and stewardship programs
Implications for pharmaceutical businesses:
- Sales of certain widely-used antimicrobials may decline
- Shift required towards novel antimicrobial R&D and education-based marketing

Retail Sector Consolidation and Competitive Saturation

Vietnam’s pharmaceutical retail landscape is transitioning from fragmentation to chain-driven consolidation, which is intensifying competition:
- Long Châu Pharmacy leads with >2,000 stores nationwide
- Pharmacity and An Khang experienced retrenchments due to operational inefficiencies

Chain	2022 Store Count	Q1 2025 Store Count	Trend
Long Châu	~1,400	>2,000	Expansion
Pharmacity	~1,100	921	Retrenchment
An Khang	>500	326	Retrenchment

Strategic takeaway:
- Scalability alone does not guarantee success
- Winners will be defined by digital agility, supply chain excellence, and customer-centric models

Strategic Opportunities Driving Future Growth

Parallel Expansion of Generic and Branded Drug Portfolios

Vietnam’s dual-tier market structure enables opportunity across:
- Generics: Affordable access and volume-based growth, especially in rural provinces
- Branded and specialty drugs: High-margin segments targeting urban and aging populations
Companies can adopt multi-brand portfolio strategies to:
- Tap both public healthcare tenders and private outpatient channels
- Localise products while introducing technology-transferred innovations

Favourable FDI Environment for Manufacturing and R&D

With the 2024 Pharmacy Law amendments in effect from July 2025, Vietnam now offers:
- Preferential treatment for pharmaceutical investments exceeding VND 3,000 billion (~USD 118 million)
- Expanded rights for Foreign-Invested Enterprises (FIEs) in:
  - Distribution and logistics
  - Contract manufacturing
  - Technology transfer and repurchasing
Vietnam recorded USD 38.23 billion in FDI in 2024, with pharma and healthcare gaining increased interest.

Strategic Advantage	Description
Low-cost skilled labour	Strong pipeline of pharmacists, engineers, biotech grads
Export potential	ASEAN+ access via trade treaties
Government alignment	Industry declared as “strategic priority”
Regulatory fast-tracking	For innovative drugs and emergency treatments

Dietary Supplements and Traditional Medicine Integration

The nutraceuticals and herbal segment is becoming an attractive niche:
- Market valued at USD 325.47 million in 2024
- Forecasted to grow at a CAGR of 6.58%, reaching USD 471.73 million by 2030
Consumer demand drivers:
- Preference for natural, non-synthetic solutions
- Increasing trust in scientifically backed traditional formulas
- Wellness tourism and preventative healthcare trends
Strategic positioning for firms:
- Combine GMP-certified herbal production with clinical validation
- Collaborate with traditional medicine institutes for R&D commercialisation

Emerging Potential in Personalised Medicine and AI-Driven Health

While still in early phases, Vietnam’s evolving ecosystem supports:
- Tailored drug therapies using genomic profiling
- AI-assisted diagnostics and remote treatment planning
Government R&D target: 2% of GDP by 2030
Opportunities for innovators:
- Partnering with local universities and AI start-ups
- Piloting personalised oncology and diabetes care programs
- Leveraging electronic health records to develop predictive care models

Conclusion: Navigating Complexity with Precision Strategy

Vietnam’s pharmaceutical industry in 2025 stands at a critical juncture—rich in opportunity yet challenged by structural gaps. To unlock its full potential, stakeholders must pursue:

Smart localisation strategies that balance affordability and innovation
Deepened public-private collaboration, particularly in manufacturing and R&D
Advanced digital adoption, both for distribution and patient engagement
Rigorous alignment with regulatory frameworks and price transparency requirements

As Vietnam gradually transforms from an import-dependent market to a self-reliant pharmaceutical hub, companies that embed themselves within the national vision—through investment, partnerships, and innovation—are likely to secure long-term strategic advantage.

8. Forecast and Outlook: Strategic Implications for 2025 and Beyond

Vietnam’s pharmaceutical sector stands on the cusp of a major structural transformation—shaped by rapid market expansion, policy reforms, evolving consumer demand, and a pronounced shift towards digitalisation and innovation. As the sector accelerates into 2025 and beyond, both domestic and international stakeholders must recalibrate their strategies to navigate a market that is simultaneously expanding and maturing.

Market Forecast and Emerging Growth Trajectories

Projected Market Size and Revenue Evolution

Vietnam’s pharmaceutical market is set for robust growth through the end of the decade. This expansion is underpinned by rising healthcare demand, higher per capita income, increasing disease burdens, and supportive government policies.

Year	Market Value (USD)	Market Value (VND Trillion)	Per Capita Pharma Spend (USD)
2022	~7.0 Billion	~147.5	$75
2024	7.60 Billion	154.1	—
2025	—	166.8	$163
2030 (Est)	12.12 Billion	~245	>$220 (Projected)
2033 (Est)	14.07 Billion	~285	—

CAGR (2025–2033): ~7.34% to 7.96%, depending on source methodology.
Retail pharmacy segment: Expected to reach USD 16.8 billion by 2033, up from USD 8.9 billion in 2024, at a CAGR of 6.7%.

Defining Market Trends Shaping the Outlook

Branded & Specialized Drugs:
- Increased demand for oncology, cardiovascular, diabetes, and other NCD treatments.
- Driven by rising affluence, aging population, and preference for targeted therapies.
Generic Medicines:
- Continued dominance in public hospitals and insurance-covered prescriptions.
- Rising penetration in rural and low-income regions supports universal access.
Pharmacy Chain Expansion:
- Rapid proliferation of modern retail models and e-pharmacy platforms.
- Market leaders such as Long Châu are approaching 20% national share.
Policy Reforms:
- Full implementation of Amended Pharmacy Law (effective July 1, 2025) is expected to:
  - Streamline drug registration and approvals
  - Expand operational rights for foreign-invested enterprises (FIEs)
  - Catalyse technology transfer, R&D, and digital innovation

Strategic Recommendations for Market Stakeholders

To fully leverage Vietnam’s evolving pharmaceutical ecosystem, both local and international players must align operations with national policy direction and consumer demand shifts.

Domestic Companies: Growth Acceleration through Upgrading and Integration

Invest in Innovation and Tech Transfer:
- Move up the value chain from simple generics to complex biologics and patented formulations.
- Actively pursue co-development deals with MNCs for vaccine and high-tech drug production.
Strengthen Manufacturing Infrastructure:
- Upgrade production sites to GMP-EU standards to compete in regional and export markets.
- Adopt lean manufacturing and automated quality systems.
Embrace End-to-End Digitalisation:
- Launch and scale omnichannel strategies including e-commerce platforms, CRM, and supply chain analytics.
- Implement AI-enabled logistics and demand forecasting tools.
Participate in M&A and Vertical Consolidation:
- Acquire or partner with regional pharmacy networks or upstream suppliers to gain market scale.
- Consolidate market share in underserved geographies through tactical acquisitions.

International Enterprises: Strategic Entry, Localization, and Expansion

Capitalize on Expanded FIE Rights:
- Utilize enhanced rights under new legislation for domestic manufacturing, direct distribution, and technology ownership.
- Establish regional hubs in Vietnam to serve ASEAN+3 markets.
Target High-Growth and High-Margin Segments:
- Prioritize investment in oncology, diabetes, cardiovascular, and rare diseases.
- Leverage unmet demand for new molecule launches and biologics, which are currently underrepresented.
Form Local Alliances:
- Enter public-private partnerships (PPP) for hospital procurement or R&D.
- Co-invest in API facilities or vaccine development centers with Vietnamese firms.
Innovate in Digital Health:
- Back e-pharmacy platforms, AI-powered diagnostics, and teleconsultation ecosystems.
- Integrate digital therapeutics and remote patient monitoring into chronic disease management.

Vietnam’s Long-Term Pharmaceutical Vision: 2030 and Beyond

Strategic Development Objectives

Vietnam has articulated a bold roadmap through its “National Pharmaceutical Industry Development Strategy to 2030, Vision 2045.” This vision prioritizes both domestic self-reliance and global competitiveness.

Objective	Target by 2030
Domestic Production Coverage	≥70% of total pharmaceutical demand
R&D Expenditure (as % of GDP)	≥2.0%
Local Vaccine/High-Tech Drug Capability	Established via tech transfer programs
Export-Ready Manufacturing Facilities	≥50 GMP-EU Certified Sites
Universal Health Coverage	≥95% population covered by 2025

Core Policy Themes:
- Affordable healthcare through domestic innovation.
- Increased export orientation and regional supply hub positioning.
- Diversified local industry supported by high-quality FDI.

Key Strategic Implications for 2025–2033

Import-to-Export Shift:
- Vietnam aims to reduce its reliance on imported patented drugs by nurturing domestic alternatives through local production and regulatory fast-tracking.
Innovation with Affordability:
- Local production of advanced medicines is not only a quality play but a cost-control mechanism.
- This fosters price competitiveness across both public insurance and private channels.
Human Capital Development:
- Meeting the R&D goals requires a major investment in STEM education, clinical trial infrastructure, and regulatory science expertise.
Export Market Potential:
- Vietnamese-manufactured drugs may increasingly target ASEAN, South Asia, and Africa, given comparable disease burdens and income levels.

Conclusion: A Market Defined by Duality and Momentum

Vietnam’s pharmaceutical landscape heading into 2025 and beyond is defined by two coexisting dynamics:

Demand-driven expansion, spurred by demographic shifts, healthcare reform, and rising affluence.
Supply-side evolution, driven by policy liberalisation, infrastructure development, and digital transformation.

Stakeholders who understand and anticipate this duality—balancing affordability with innovation, and localisation with globalisation—will be best positioned to benefit from Vietnam’s emergence as a regional pharmaceutical leader and technology hub.

Conclusion

Vietnam’s pharmaceutical industry in 2025 stands as a compelling case study in rapid transformation, dynamic policy evolution, and untapped potential. As this Southeast Asian nation transitions from a fragmented, generics-driven pharmaceutical market to a more structured, innovation-oriented ecosystem, stakeholders must navigate a landscape shaped by demographic urgency, economic expansion, policy reforms, and an increasing appetite for healthcare access and quality.

A Market at the Crossroads of Growth and Complexity

With the pharmaceutical market projected to surpass VND 166.8 trillion in 2025 and forecasted to reach USD 14.07 billion by 2033, Vietnam has solidified its position as one of the fastest-growing pharmaceutical markets in Asia-Pacific. This is driven by a powerful convergence of macro and microeconomic forces:

Aging Population and Chronic Disease Burden: Vietnam’s rapidly aging society and the growing prevalence of non-communicable diseases (NCDs) such as cardiovascular disorders, diabetes, and cancer are fueling long-term pharmaceutical demand. An estimated 22 million citizens are living with chronic conditions, fundamentally reshaping the healthcare and medicine consumption landscape.
Rising Incomes and Health Awareness: A burgeoning middle class and rising per capita income—estimated to reach USD 7,500 by 2030—are driving higher expenditure on healthcare, branded drugs, dietary supplements, and specialty treatments. Consumers are increasingly opting for advanced, high-quality therapies, pushing the market beyond basic generics.
Government Commitment and Regulatory Reform: The Vietnamese government has demonstrated an unwavering commitment to sectoral reform through the Amended Pharmacy Law (effective July 2025) and the National Pharmaceutical Industry Development Strategy to 2030 and Vision to 2045. These frameworks are fostering a more transparent, investor-friendly regulatory environment and incentivizing local production, foreign direct investment (FDI), and technology transfer.
Digital Disruption and E-Pharmacy Expansion: Technology is playing a transformative role in the sector. E-pharmacies, AI-driven diagnostics, and telemedicine platforms are expanding access to healthcare services, especially in rural and underserved areas. Digitalisation is not merely enhancing convenience—it is redefining supply chain management, patient engagement, and product delivery models.

Strategic Opportunities for Stakeholders

For both domestic enterprises and multinational pharmaceutical corporations, Vietnam offers a spectrum of high-potential investment avenues:

Domestic Manufacturers are being incentivised to elevate capabilities beyond generics into complex formulations, biologics, and vaccines, especially through R&D and partnerships with global firms.
International Players are finding an increasingly hospitable environment for market entry and expansion. New regulations now permit broader wholesale, distribution, and manufacturing rights for foreign-invested enterprises (FIEs), opening the door for full-spectrum operational control and vertical integration.
Retail Pharmacy Chains and E-Commerce Players are poised for consolidation and competitive expansion, with modern retail outlets and online pharmaceutical platforms gaining substantial traction among tech-savvy consumers.
Niche Segments such as dietary supplements, traditional medicine integrations, and oncology therapies offer high-margin growth potential as consumer health consciousness rises and healthcare infrastructure matures.

Key Challenges That Require Ongoing Reform and Investment

Despite the bullish trajectory, several structural challenges still constrain the industry’s full potential:

Heavy Reliance on Imports: Domestic production currently meets just 53% of demand by volume and 46.3% by value, underscoring vulnerability in pharmaceutical sovereignty and cost volatility.
Limited R&D and Innovation Capacity: While the government aims to raise R&D spending to 2% of GDP by 2030, Vietnam still lags behind regional peers in introducing new molecules, with only 9% of new global drugs entering the Vietnamese market over the past decade.
Counterfeit Drugs and AMR Risks: The proliferation of counterfeit medicines, particularly through unregulated online channels, poses a serious threat to public safety. Additionally, Vietnam is battling high rates of antimicrobial resistance (AMR) due to overprescription and unsupervised antibiotic sales.
Talent and Infrastructure Gaps: Human capital in pharmaceutical sciences, GMP-EU manufacturing, and regulatory compliance needs significant strengthening if Vietnam is to achieve its vision of becoming a regional pharmaceutical hub.

A Visionary Roadmap to 2030 and Beyond

Vietnam’s pharmaceutical future is guided by a strategic vision to:

Achieve 70% domestic pharmaceutical production by 2030
Position itself as a regional manufacturing and R&D center
Expand universal healthcare coverage to 95% of the population
Accelerate digital health innovation and global investment partnerships

To reach these goals, the nation must continue fostering a collaborative environment where policy, private enterprise, academic research, and foreign capital align with shared goals—namely, quality, affordability, innovation, and accessibility.

Final Thought

As 2025 marks a pivotal inflection point for Vietnam’s pharmaceutical industry, the nation is no longer simply a consumption market—it is becoming a strategic node in the global pharmaceutical value chain. Those who can read the long-term signals, adapt to policy shifts, and localize innovation will not only capture immediate growth but also help shape the future of healthcare in one of Asia’s most dynamic economies.

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