Vietnam Pharmaceuticals Market [2028]: Top Trends, Size, and Competitive Intelligence - TechSci Research
Market Growth and Opportunities
According to the TechSci Research report, "Vietnam Pharmaceuticals Market - By Region, Competition, Forecast and Opportunities, 2028," the pharmaceuticals market in Vietnam is growing rapidly with a Compound Annual Growth Rate (CAGR) of 8.19%. Vietnam, one of Southeast Asia’s fastest-growing economies, presents a lucrative opportunity for pharmaceutical companies to expand their business.
Factors Driving Market Growth
Increasing Population and Healthcare Demand
Vietnam's population is burgeoning, now exceeding 97 million. This demographic surge is propelling the demand for healthcare services and medicinal products. Furthermore, the expansion of Vietnam’s middle class is making healthcare products more affordable and accessible. As a result, there is a significant uptick in the consumption of pharmaceutical products.
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Government Initiatives
The Vietnamese government has been instrumental in fostering the growth of the pharmaceuticals market through several initiatives. Improvements in healthcare infrastructure and increased health insurance coverage have played crucial roles. As healthcare becomes more accessible, the demand for pharmaceuticals naturally increases. Additionally, healthcare reforms have been implemented to streamline drug registration processes, enhance intellectual property protection, and support domestic pharmaceutical production.
Demographic Shifts and Chronic Diseases
Vietnam is experiencing a demographic shift, with an aging population expected to reach over 20% by 2038 and approximately 25% by 2049. This aging population is contributing to the heightened demand for pharmaceutical drugs. Moreover, the prevalence of chronic diseases such as cancer and diabetes is rising. This epidemiological transition is driving the demand for specialty drugs that offer targeted therapies and improved outcomes for patients.
Increased Healthcare Expenditure
With a growing affluent class and a median age of around 30 years, Vietnam’s expenditure on medicines has risen significantly, reflecting a high paying capacity for healthcare. The increased purchasing power of the population, coupled with government investment in healthcare infrastructure and services, further boosts the pharmaceutical market.
Recent Trends
Emphasis on R&D Activities
The Vietnamese government is emphasizing research and development (R&D) activities to encourage domestic drug production and reduce reliance on imports. Increased R&D investments are expected to spur innovation in the pharmaceutical market, leading to the development of new and advanced medicinal products.
Interest in Traditional Medicine
There is a growing interest in traditional medicine and natural remedies in Vietnam. The country’s rich herbal heritage has made traditional medicine popular, increasing the demand for herbal pharmaceuticals and supplements. This trend is likely to continue, driven by consumer preferences for natural and holistic health solutions.
Impact of COVID-19
The COVID-19 pandemic has significantly impacted the global pharmaceutical industry, and Vietnam is no exception. While the pandemic disrupted supply chains and logistics, it also provided an opportunity for local pharmaceutical companies to demonstrate their ability to produce critical medical supplies. Additionally, the pandemic accelerated the development of digital health and telehealth in Vietnam. Virtual healthcare consultations and e-pharmacies gained momentum, changing the way healthcare is provided.
Competitive Analysis
Major Players in the Market
Several key players dominate the Vietnam pharmaceuticals market, contributing to its rapid growth. Major companies operating in the market include:
- 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)
Market Segmentation
The Vietnam pharmaceuticals market can be segmented by drug type, product type, application, distribution channel, and region.
- Drug Type: The market is divided into generic drugs and branded drugs. In 2022, generic drugs acquired the highest share of 61.73% due to their cost-effectiveness and equivalence to brand-name drugs in terms of active ingredients, dosage, safety, efficacy, and intended use.
- Product Type: The market is categorized into prescription drugs and over-the-counter (OTC) drugs. Prescription drugs held the highest share of 69.73% in 2022, underscoring their essential role in healthcare.
Drivers of Market Growth
Government Reforms and Initiatives
The Vietnamese government has implemented proactive measures to enhance the healthcare system and pharmaceutical industry. These measures include regulatory strengthening, streamlined drug registration processes, and support for domestic pharmaceutical production. Such initiatives are designed to boost the production and availability of pharmaceutical products, fostering market growth.
Growing Affluent Class and Urbanization
The rising population, increasing urbanization, and a growing middle class are creating a larger consumer base for pharmaceutical products. Urbanization brings improved access to healthcare facilities and services, while the growing middle class enhances the purchasing power for healthcare products.
Increased Investment in Healthcare
The Vietnamese government has been increasing its investment in healthcare infrastructure and services. This includes expanding access to healthcare facilities, improving healthcare quality, and enhancing the affordability of pharmaceutical products. Such investments are crucial for sustaining market growth.
Rising Prevalence of Non-Communicable Diseases
The rising prevalence of non-communicable diseases among the Vietnamese population, coupled with growing purchasing power, is expected to contribute to market growth over the forecast period. The demand for pharmaceutical products to manage chronic diseases is increasing, driving the need for advanced medicinal products.
Benefits of the Research Report
The research report on the Vietnam pharmaceuticals market provides numerous benefits, including:
- Comprehensive Market Analysis: Detailed insights into the current state and future prospects of the Vietnam pharmaceuticals market.
- Market Segmentation: In-depth analysis of market segmentation by drug type, product type, application, distribution channel, and region.
- Growth Drivers and Challenges: Identification of key growth drivers and challenges impacting the market.
- Competitive Landscape: Analysis of major players and their strategies in the Vietnam pharmaceuticals market.
- Trends and Opportunities: Insights into recent trends and opportunities in the market.
- Government Initiatives: Examination of government reforms and initiatives shaping the market.
- Impact of COVID-19: Assessment of the COVID-19 pandemic's impact on the market.
- R&D Activities: Analysis of the role of R&D activities in driving market growth.
- Consumer Preferences: Understanding of consumer preferences for traditional medicine and natural remedies.
- Future Outlook: Forecast of market growth and potential opportunities for stakeholders.
The Vietnam pharmaceuticals market is poised for significant growth in the coming years, driven by an increasing population, rising middle class, government initiatives, and a growing interest in traditional medicine. Despite challenges such as a lack of domestic manufacturing capability and the prevalence of counterfeit drugs, the market presents substantial opportunities for pharmaceutical companies. With ongoing investments in R&D and healthcare infrastructure, Vietnam is set to become a major player in the global pharmaceutical industry.
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“Vietnam’s pharmaceutical market is growing rapidly due to several factors. A growing middle class with higher disposable income has increased their healthcare spending, leading to an increase in pharmaceutical demand. Also, a rapidly ageing population has increased the market for drugs that address age related health conditions. Manufacturing processes and research capacities have improved, allowing local pharma companies to improve their product range and quality, increasing competition and innovation within the sector. However, the coronavirus pandemic presented challenges and opportunities to the market. Demand for some medications and vaccines increased, but supply chain disruptions and logistical issues posed challenges. Pharmaceutical companies that showed resilience and flexibility thrived during the pandemic.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
“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, 2028”, has evaluated the future growth potential of Vietnam pharmaceuticals market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Vietnam pharmaceuticals market.
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