Surging past a value of $7.2 billion, Vietnam's pharmaceutical market is racing towards a $10.5 billion future, fueled by a generics powerhouse, a booming OTC sector, and strategic investments reshaping its healthcare landscape.
Key Takeaways
- Vietnam's pharmaceutical market reached a value of USD 7.2 billion in 2023, with a CAGR of 8.5% from 2018-2023 driven by rising healthcare expenditure.
- The generic drugs segment accounted for 75% of Vietnam's pharmaceutical market revenue in 2023, totaling approximately USD 5.4 billion.
- Over-the-counter (OTC) medicines grew by 12% year-on-year in 2023, reaching USD 1.8 billion in sales within Vietnam's pharma sector.
- Vietnam produced 450 million packs of pharmaceuticals in 2023, up 12% from 2022.
- Local manufacturing capacity for generic drugs reached 85% of domestic demand in 2023.
- There are 245 pharmaceutical manufacturing facilities in Vietnam as of 2023.
- Vietnam pharmaceutical imports totaled USD 3.5 billion in 2023, up 11% YoY.
- Pharmaceutical exports from Vietnam reached USD 1.2 billion in 2023, growth of 20%.
- India supplied 35% of Vietnam's pharma imports valued at USD 1.225 billion in 2023.
- Vietnam pharma per capita consumption was 28.5 DDD per day in 2023.
- Urban areas accounted for 60% of pharma consumption in Vietnam 2023.
- Antibiotics consumption: 45% of total pharma volume in Vietnam 2023.
- FDI in Vietnam pharma reached USD 1.5 billion cumulative by 2023.
- 45 new foreign pharma investments approved in Vietnam 2023.
- EU GMP compliance achieved by 120 Vietnam factories by 2023.
Vietnam's pharma market is rapidly expanding, driven by generic drugs and rising healthcare needs.
Consumption and Distribution
- Vietnam pharma per capita consumption was 28.5 DDD per day in 2023.
- Urban areas accounted for 60% of pharma consumption in Vietnam 2023.
- Antibiotics consumption: 45% of total pharma volume in Vietnam 2023.
- Average annual pharma spend per household: VND 5.2 million in 2023 Vietnam.
- Hospital sector consumed 38% of pharma products in Vietnam 2023.
- Retail pharmacies dispensed 45% of prescriptions in Vietnam 2023.
- Online pharmacy orders: 8 million transactions in Vietnam 2023.
- Generics consumption rate: 80% of total prescriptions in Vietnam 2023.
- Painkillers top consumed category at 18% volume in Vietnam 2023.
- Vitamins and supplements: 12% of consumption value in Vietnam 2023.
- Chronic disease drugs: 55% of total consumption spend in 2023 Vietnam.
- Rural pharma access improved to 92% coverage in Vietnam 2023.
- Out-of-pocket pharma payment: 52% of total health spend in 2023 Vietnam.
- Social health insurance covered 40% of pharma costs in 2023 Vietnam.
- Pediatric drugs consumption: USD 320 million in Vietnam 2023.
- Geriatric pharma demand up 16% to USD 680 million in 2023 Vietnam.
- Seasonal flu drugs peaked at 2.5 million packs sold Q4 2023 Vietnam.
- Counterfeit drugs seized: 1.2 million packs in Vietnam 2023.
- Pharmacist-to-population ratio: 1:3,500 in Vietnam 2023.
- Drug utilization review covered 75% of public hospitals in 2023 Vietnam.
- Antibiotic stewardship reduced usage by 10% in 2023 Vietnam hospitals.
- Pharmacy chains: 15,000 outlets nationwide in Vietnam 2023.
- Home delivery pharma services reached 25% urban penetration 2023 Vietnam.
- OTC sales volume: 320 million packs in Vietnam 2023.
- Insulin consumption doubled to 1.2 million vials in 2023 Vietnam.
Consumption and Distribution Interpretation
While Vietnam's pharmacies are well-stocked with generics for chronic pain, the nation's health narrative is a telling split between city dwellers popping pills and rural patients relying on resilience, all while paying out of pocket more than they insure and trying to cut back on the antibiotics they still consume nearly half of.
Imports and Exports
- Vietnam pharmaceutical imports totaled USD 3.5 billion in 2023, up 11% YoY.
- Pharmaceutical exports from Vietnam reached USD 1.2 billion in 2023, growth of 20%.
- India supplied 35% of Vietnam's pharma imports valued at USD 1.225 billion in 2023.
- EU countries exported USD 650 million worth of pharma to Vietnam in 2023.
- China was top pharma exporter to Vietnam with USD 850 million in 2023.
- US pharma exports to Vietnam hit USD 420 million in 2023, up 15%.
- Vietnam's pharma trade deficit stood at USD 2.3 billion in 2023.
- ASEAN pharma imports to Vietnam: USD 280 million in 2023.
- Finished dosage forms imports: 70% of total pharma imports in Vietnam 2023.
- API imports dominated by penicillins and cephalosporins, USD 950 million 2023 Vietnam.
- Top export market for Vietnam pharma: Cambodia, USD 250 million in 2023.
- Exports to Laos: USD 180 million pharma products from Vietnam 2023.
- Myanmar imported USD 120 million Vietnam pharma in 2023.
- Pharma exports to US: USD 95 million from Vietnam in 2023.
- EU pharma exports from Vietnam: USD 85 million in 2023.
- Intra-company pharma imports: USD 1.1 billion in Vietnam 2023.
- Oncology drugs imports: USD 280 million, 8% of total pharma imports 2023 Vietnam.
- Vaccine imports dropped 5% to USD 220 million in Vietnam post-2023.
- Biologics imports USD 150 million, growing 25% in Vietnam 2023.
- Medical devices bundled with pharma imports: USD 450 million 2023 Vietnam.
- Tariffs on pharma imports averaged 2% under EVFTA in 2023 Vietnam.
- Pharma export growth to Africa: 30% to USD 45 million in 2023 Vietnam.
- Digital trade platforms facilitated 10% of pharma imports in 2023 Vietnam.
- Pharma import clearance time averaged 4.2 days in Vietnam 2023.
Imports and Exports Interpretation
Vietnam's pharmaceutical industry is like a discerning foodie with expensive tastes, indulging in a lavish $3.5 billion import banquet of finished drugs from global suppliers while its own kitchen, though growing faster, is still mostly packing $1.2 billion worth of simpler meals for the neighbors.
Market Size and Growth
- Vietnam's pharmaceutical market reached a value of USD 7.2 billion in 2023, with a CAGR of 8.5% from 2018-2023 driven by rising healthcare expenditure.
- The generic drugs segment accounted for 75% of Vietnam's pharmaceutical market revenue in 2023, totaling approximately USD 5.4 billion.
- Over-the-counter (OTC) medicines grew by 12% year-on-year in 2023, reaching USD 1.8 billion in sales within Vietnam's pharma sector.
- Prescription drugs market in Vietnam expanded to USD 4.7 billion in 2023, representing 65% of total pharma sales.
- Biopharmaceuticals segment in Vietnam grew at 15% CAGR from 2020-2023, valued at USD 450 million in 2023.
- Vietnam pharma market projected to hit USD 10.5 billion by 2028 at 9.2% CAGR, fueled by urbanization.
- Hospital pharmacy channel captured 42% of Vietnam's pharma market share in 2023, worth USD 3.0 billion.
- Retail pharmacy sales in Vietnam pharma reached USD 2.7 billion in 2023, up 10% from previous year.
- Traditional medicine segment valued at USD 1.1 billion in 2023, comprising 15% of total pharma market.
- Nutraceuticals market in Vietnam grew to USD 850 million in 2023, with 11% YoY growth.
- Vietnam's pharma market per capita spending reached USD 72 in 2023, up from USD 65 in 2022.
- Oncology drugs sub-market in Vietnam valued at USD 320 million in 2023, growing at 18% CAGR.
- Cardiovascular drugs accounted for 22% of Vietnam pharma sales in 2023, totaling USD 1.58 billion.
- Anti-infective drugs segment reached USD 1.2 billion in Vietnam 2023, 17% market share.
- Diabetes drugs market in Vietnam hit USD 450 million in 2023, CAGR 14% since 2019.
- Vietnam pharma industry attracted FDI of USD 1.2 billion in 2023 for market expansion.
- E-pharmacy sales in Vietnam surged 25% to USD 180 million in 2023.
- Private clinic pharma sales grew 13% to USD 950 million in Vietnam 2023.
- Vaccine market in Vietnam pharma valued at USD 280 million in 2023, up 20% post-COVID.
- Pain management drugs segment reached USD 380 million in Vietnam 2023.
- Vietnam's total pharma revenue from top 10 companies was USD 2.8 billion in 2023.
- Local firms held 55% market share in Vietnam pharma generics in 2023.
- Imported branded drugs 28% of market value at USD 2.0 billion in 2023 Vietnam.
- Gastro-intestinal drugs USD 520 million, 7% share in Vietnam pharma 2023.
- Respiratory drugs market USD 410 million in Vietnam 2023, 6% growth.
- Central nervous system drugs USD 290 million in Vietnam pharma 2023.
- Hormonal drugs segment USD 210 million, 3% of Vietnam market 2023.
- Ophthalmology drugs USD 150 million in Vietnam 2023 pharma sales.
- Dermatology products USD 340 million, growing 9% in Vietnam 2023.
- Vietnam pharma market digital sales channel to reach 15% share by 2025 from 5% in 2023.
Market Size and Growth Interpretation
Vietnam's pharmaceutical market is a tale of two pharmacies: one is a traditional, generic-dominated giant slowly stretching its limbs, while the other is a nimble, digital-savvy sprinter fueled by biotech and e-pills, both racing toward a ten-billion-dollar finish line.
Production and Manufacturing
- Vietnam produced 450 million packs of pharmaceuticals in 2023, up 12% from 2022.
- Local manufacturing capacity for generic drugs reached 85% of domestic demand in 2023.
- There are 245 pharmaceutical manufacturing facilities in Vietnam as of 2023.
- API production in Vietnam covered only 15% of needs in 2023, rest imported.
- Biotech production output grew 18% to VND 15 trillion in Vietnam 2023.
- 12 new GMP-compliant factories opened in Vietnam pharma sector in 2023.
- Oral solid dosage forms comprised 60% of Vietnam's pharma production volume in 2023.
- Injectable drugs production reached 120 million units in Vietnam 2023.
- Top 5 local producers manufactured 40% of Vietnam's total pharma packs in 2023.
- Capacity utilization in Vietnam pharma plants averaged 75% in 2023.
- Herbal medicine production hit 180 million packs in Vietnam 2023.
- Vaccine production capacity in Vietnam reached 50 million doses annually by 2023.
- Packaging materials local production met 70% of pharma needs in 2023 Vietnam.
- R&D spending by Vietnam pharma firms totaled USD 250 million in 2023.
- 35 new drug products registered for production in Vietnam in 2023.
- Automation rate in Vietnam pharma manufacturing reached 45% in 2023.
- Export-oriented pharma production grew 22% to USD 650 million in 2023.
- Southern Vietnam produced 55% of national pharma output in 2023.
- Northern region factories output 30% of Vietnam pharma in 2023.
- Central Vietnam pharma production doubled to 15% national share in 2023.
- Imidacloprid production capacity 2,500 tons/year by local firms in 2023 Vietnam.
- Tablet pressing machines installed: 1,200 units across Vietnam pharma in 2023.
- Sterile manufacturing lines: 45 operational in Vietnam 2023.
- Annual production of paracetamol: 8,000 tons in Vietnam pharma 2023.
- Amoxicillin production: 5,500 tons/year capacity in Vietnam 2023.
- Vietnam imported pharma raw materials worth USD 2.8 billion in 2023.
- Local content in finished pharma products averaged 45% in Vietnam 2023.
- Energy consumption in pharma manufacturing down 8% per unit in 2023 Vietnam.
- Waste generation from pharma production: 120,000 tons managed in 2023 Vietnam.
Production and Manufacturing Interpretation
Vietnam's pharmaceutical industry is striding confidently toward self-sufficiency in finished pills and packaging, yet it still walks with a pronounced limp when it comes to sourcing the essential ingredients to make them.
Regulations and Investments
- FDI in Vietnam pharma reached USD 1.5 billion cumulative by 2023.
- 45 new foreign pharma investments approved in Vietnam 2023.
- EU GMP compliance achieved by 120 Vietnam factories by 2023.
- PIC/S membership application submitted by Vietnam DAV in 2023.
- Pharma price controls capped 1,200 drugs in Vietnam 2023.
- VAT on pharma reduced to 5% for essentials in Vietnam 2023.
- Local content requirement 30% for govt procurement pharma 2023 Vietnam.
- R&D tax incentives boosted pharma innovation 20% in 2023 Vietnam.
- New Drug Law 2023 enforced stricter bioequivalence standards.
- 2,500 drug registrations approved by DAV in 2023 Vietnam.
- Post-marketing surveillance inspected 180 factories in 2023 Vietnam.
- Investment in high-tech pharma parks: USD 800 million by 2023.
- Sanofi invested USD 100 million in Vietnam plant expansion 2023.
- Pfizer partnership for local production worth USD 50 million 2023 Vietnam.
- Roche R&D center opened in Hanoi with USD 30 million 2023.
- Novo Nordisk factory investment USD 120 million in Binh Duong 2023.
- Regulatory harmonization with ASEAN: 85% alignment by 2023 Vietnam.
- Clinical trial approvals: 150 new in Vietnam 2023.
- IP protection strengthened for 500 pharma patents in 2023 Vietnam.
- Govt subsidies for vaccine R&D: VND 2 trillion in 2023 Vietnam.
- Public-private partnerships: 25 in pharma sector 2023 Vietnam.
Regulations and Investments Interpretation
Vietnam's pharmaceutical industry is sprinting towards global standards with a potent cocktail of foreign investment, regulatory muscle, and sweetened tax incentives, all while carefully managing the patient's bill.
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