It has recently been reported that Vietnam’s pharmaceutical industry has been experiencing a shortage of advanced R&D centers and internationally qualified facilities for biological and clinical research. In addition, the country does not yet possess a dedicated industrial park with a complete ecosystem for drug production.
Due to limitations in science and technology, Vietnam’s pharmaceutical industry is only capable of producing drugs for common and chronic diseases. As a result, the domestic market is dominated by foreign pharmaceutical companies.
The General Secretary and Office Chief of the Vietnam Pharmaceutical Companies Association (VNPCA) highlighted that domestic drugs accounted for only 46% of Vietnamese consumers’ total spending on medication in the 2015-2021 period. While this rate dramatically improved from the 17% of the 2001-2011 period, it is still far lower than the global average.
Under the Pharmaceutical Industry Development Program 2030 with a Vision to 2040, Vietnam has set a target for domestically produced drugs to make up 75% of market consumption by 2025 and 80% by 2030. The country also aims to become a regional center for high-value pharmaceuticals, targeting an export value of USD 1 billion.
To achieve these goals, pharmaceutical businesses must enhance their competitiveness by placing an emphasis on research and development, technology, and digitalization. According to BMI Research, Vietnam’s pharmaceutical market was valued at USD 6.9 billion in 2021, and it is forecasted to reach USD 16.1 billion by 2026 with a CAGR of up to 11%.