Vietnam Pharmaceuticals Market: Driving Forces and Disruptive Trends [2028]

Introduction

The pharmaceutical industry in Vietnam is experiencing significant growth, driven by various factors such as increasing population, rising income levels, and government initiatives to promote healthcare. According to the latest report by TechSci Research, titled "Vietnam Pharmaceuticals Market - By Region, Competition, Forecast and Opportunities, 2028", the market was valued at USD 6.98 billion in 2022 and is expected to grow at a CAGR of 8.19% during the forecast period. This report aims to provide a comprehensive analysis of the Vietnam pharmaceuticals market, focusing on recent trends, driving factors, competitive landscape, and future opportunities.

Recent Trends in the Vietnam Pharmaceuticals Market

The pharmaceutical sector in Vietnam has witnessed several notable trends in recent years, shaping the market dynamics and influencing its growth trajectory.

1. Digital Health and Telehealth

The COVID-19 pandemic has accelerated the adoption of digital health and telehealth services in Vietnam. With restrictions on movement and face-to-face consultations, virtual healthcare consultation platforms and e-pharmacies have gained prominence, revolutionizing the delivery of healthcare services. This trend is expected to continue post-pandemic, driving further innovation in the healthcare sector.

2. Increasing Interest in Traditional Medicine

Vietnam boasts a rich herbal heritage, leading to a growing interest in traditional medicine and natural remedies among the population. This trend has resulted in an increased demand for herbal pharmaceuticals and supplements, presenting opportunities for both local and international pharmaceutical companies to diversify their product offerings.

3. Emphasis on R&D Activities

The Vietnamese government is focusing on promoting domestic drug production and reducing dependence on imports by encouraging investments in research and development (R&D). This strategic initiative is expected to spur innovation in the pharmaceutical sector, leading to the development of new drugs and therapies to address unmet medical needs.

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Drivers of Growth in the Vietnam Pharmaceuticals Market

Several key drivers are fueling the growth of the pharmaceutical industry in Vietnam, contributing to its expansion and development.

1. Economic Growth and Rising Income Levels

Vietnam has experienced robust economic growth over the past two decades, with the GDP expanding at an average yearly rate of 7%. In the same time, GDP per capita increased from 288 USD in 1995 to 2110 USD in 2015, equivalent to growth of over 10% per year in nominal terms. This growth, coupled with increasing per capita income, has led to higher healthcare expenditure and greater affordability of pharmaceutical products among the population.

2. Population Growth and Urbanization

The country's population has been steadily increasing, passing from 72 million people in 1995 to 91 million in 2015, and reaching over 97 million people in recent years. Rapid urbanization has accompanied this population growth, resulting in a consistent expansion in the domestic market size. At the same time, urban areas in Vietnam have developed spatially at 2.8% per year, which is among the fastest rates in the Asian region. This has heightened demand for healthcare services and medicinal products.

3. Demographic Shift towards Aging Population

Vietnam is undergoing a demographic transition characterized by an aging population. According to the Ministry of Health, the number of people above the age of 60 reached 10.2% in 2014 in comparison to 7.1% in 1989. During the same time, the number of people under the age of 15 quickly decreased from 39.2% to 23.5%. As a result, the ageing index increased from 18.2% (1989) to 43.3% (2014). This demographic shift is expected to drive demand for pharmaceutical drugs, particularly those targeting age-related ailments and chronic diseases.

4. Government Initiatives and Regulatory Support

The Vietnamese government has implemented proactive measures to strengthen the healthcare system and support the pharmaceutical industry. Since the early 1990s, acknowledging the importance of the healthcare sector, various policies have been formulated to promote its development. This includes regulatory strengthening, streamlined drug registration processes, and support for domestic drug production.

Competitive Analysis

The Vietnam pharmaceuticals market is characterized by intense competition among domestic and international players. Major companies operating in the market include:

1. Bayer Vietnam Ltd.

2. DHG Pharmaceutical Joint Stock Company

3. Traphaco Joint Stock Company

4. Ha Tay Pharmaceutical Joint Stock Company

5. Domesco Medical Import Export Joint Stock Corporation (DOMESCO)

6. OPC Pharmaceutical Joint Stock Company

7. Sanofi SA

8. Mekophar Chemical and Pharmaceutical JSC

9. Imexpharm Corporation

10. PYMEPHARCO Joint Stock Company (STADA Arzneimittel AG)

These companies compete based on factors such as product innovation, pricing strategies, distribution network, and market presence. Collaboration with healthcare providers, investment in R&D, and expansion into emerging therapeutic areas are key strategies adopted by players to gain a competitive edge in the market.

Benefits of the Research Report - https://www.techsciresearch.com/sample-report.aspx?cid=7808

The TechSci Research report on the Vietnam pharmaceuticals market offers several benefits to stakeholders, including:

1. Comprehensive Market Analysis: The report provides a detailed analysis of the Vietnam pharmaceuticals market, including market size, growth trends, and future prospects.

2. Insightful Market Segmentation: By segmenting the market based on drug type, product type, application, distribution channel, and region, the report offers valuable insights into different market segments and their dynamics.

3. Strategic Planning: Stakeholders can use the report's findings to formulate strategic business plans, identify growth opportunities, and make informed decisions regarding market entry and expansion.

4. Competitive Landscape Analysis: The report offers a thorough analysis of the competitive landscape, including profiles of key players, their market share, and strategies. This information helps stakeholders benchmark their performance against competitors and devise competitive strategies.

5. Regulatory Environment Assessment: The report assesses the regulatory environment governing the pharmaceutical industry in Vietnam, helping stakeholders navigate compliance requirements and regulatory challenges.

6. Market Entry Strategies: For new entrants and existing players, the report provides valuable insights into market entry strategies, including mergers and acquisitions, partnerships, and investment opportunities.

7. Market Dynamics Understanding: By analyzing the drivers, restraints, and opportunities shaping the market, the report helps stakeholders understand the market dynamics and anticipate future trends.

8. Risk Assessment and Mitigation: Stakeholders can use the report to identify potential risks and challenges in the market and devise risk mitigation strategies to safeguard their investments.

9. Investment Feasibility Analysis: The report offers an assessment of the investment feasibility of various market segments, helping investors make informed decisions and allocate resources effectively.

10. Future Outlook and Forecast: Finally, the report provides a comprehensive forecast of the Vietnam pharmaceuticals market, enabling stakeholders to anticipate future market trends and plan their business strategies accordingly.

The Vietnam pharmaceuticals market presents lucrative opportunities for domestic and international players, driven by factors such as economic growth, population expansion, and government initiatives to promote healthcare. However, stakeholders need to navigate challenges such as supply chain issues, counterfeit drugs, and regulatory complexities to capitalize on these opportunities successfully. By leveraging the insights provided in the TechSci Research report, stakeholders can gain a competitive advantage and achieve sustainable growth in the dynamic Vietnamese pharmaceutical market.

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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.

Download Free Sample Report - https://www.techsciresearch.com/sample-report.aspx?cid=7808

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