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Market Overview

Vietnam's pharmaceutical market is expected to grow through 2031, with prescription drug sales outpacing OTC medicine. The top 5 pharmaceutical companies in Vietnam will benefit from this growth. Healthcare spending is also expected to increase as the population ages and the middle class expands.

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92 views7 pages

Market Overview

Vietnam's pharmaceutical market is expected to grow through 2031, with prescription drug sales outpacing OTC medicine. The top 5 pharmaceutical companies in Vietnam will benefit from this growth. Healthcare spending is also expected to increase as the population ages and the middle class expands.

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thaonguyendpdxqn2209
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PHARMACEUTICAL MARKET SIZE

Vietnam’s pharmaceutical revenue is expected to reach $7.51 billion by 2025,


accounting for 1.78 percent of GDP and 32.2 percent of healthcare spending at a
CAGR in 2020-2025 of 8 percent (“The Global Use of Medicines 2022” report
from IQVIA Institute)
Vietnam's pharmaceutical market includes two main sectors: the prescription
drug market and the OTC Medicine Market
*OTC medicine (over-the-counter medicine): medicines that may be purchased from a
pharmacist without a doctor’s prescription.
Source:FitchSolutions

=> Vietnam’s prescription drug and OTC medicine market is expected to grow over
the forecast period through 2031. Plus, prescription drug sales outpace OTC medicine
sales.
Vietnam’s Generic Drug will grow in the long term given the country’s
cost-containment measure, poor regulatory environment, and lack of scientific
expertise

Source:FitchSolutions
A downward trend will be witnessed in the Vietnamese patented medicines
market
Source:FitchSolutions

Affluent urban populations are more frequent users of patented medicines, however,
poor intellectual property law enforcement makes it hard for patented medicines to
retain their market and get an advantage over generic medicines.

PRODUCTION OVERVIEW
TOP 5 LARGEST PHARMACEUTICAL COMPANIES IN VIETNAM
=> The high demand for drugs, especially for antibiotics and disease prevention
, and immune system-boosting products, was the main driving force for DHG’s
revenue growth.
The first half of 2023 has been an unpredictable time for the supply chain of
medical materials:
About 65% of APIs used in drug protection in Vietnam are from China, which has
reopened. However, there is still concern about shortages. The war between
Russia-Ukraine put active ingredients and drugs imported from Europe at risk of
shortages.
The COVID-19 pandemic leads to broken supply chain of drugs from other countries.
=> Companies using domestic raw materials will gain a better position, such as
Traphaco Joint Stock Company
HEALTHCARE SPENDING WITNESS AN UPWARD TREND
Source: FitchSolutions
From 2020 to 2030, healthcare spending will account for a similar share of the
country’s GDP at 5.6%
DEMOGRAPHIC
Nearly 70% of Vietnam’s population aged 15 to 64 years,
which creates the window of adopting innovative science and technology

Source: Statista
However, Vietnamese begin to age rapidly, with the over-65-years of age dominates
The faster growth rate of the people aged 65 years and above put pressure on
healthcare system and demand for care services.

Vietnam’s middle and affluent class has also grown significantly in recent years.
Households with annual incomes at or above $13,450 are expected to make up nearly
20% of the population by 2024, up from 12% in 2019.
Source: “Emerging trends in healthcare and their implications for Vietnam” by Pwc

=>These wealthier income groups typically demand a higher quality of healthcare


examination and treatment, These groups also have access to much wider care options,
in hospitals and alternative care sites, either domestically or abroad, via offline or
virtual channels.

References:
● EU-Vietnam Free Trade Agreement | Access2Markets (no date). Available at:
https://trade.ec.europa.eu/access-to-markets/en/content/eu-vietnam-free-trade-a
greement.
● TRADING ECONOMICS. (n.d.-a). Vietnam Exports By Category.
https://tradingeconomics.com/vietnam/exports-by-category

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