Vietnam Pharmaceuticals Market Overview Analysis By Fortune Business Insights
Market Summary
According to Fortune Business Insights: The Vietnam pharmaceuticals market was valued at USD 7.94 billion in 2024 and is estimated to grow from USD 8.58 billion in 2025 to USD 16.03 billion by 2032, at a CAGR of 9.33% during the forecast period. The market encompasses prescription and over-the-counter drugs, vaccines, biologics, and biosimilars distributed across hospital pharmacies, retail drug stores, and online channels. Market growth is propelled by a rising burden of chronic and infectious diseases, a rapidly aging population generating growing demand for generic drugs, active government immunization programs achieving landmark vaccination milestones, and increasing strategic activities by both global multinationals and domestic players seeking to expand footprints in Vietnam's pharmaceutical industry.
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Key Market Drivers
Increasing strategic activities for expansion of pharmaceutical business are the primary market growth driver. Broad-ranging collaborations between global and regional pharmaceutical players — encompassing product portfolio expansion, technology transfer, new therapeutic segment launches, and distribution network strengthening — are accelerating market development. In July 2025, Britain's Medicines and Healthcare products Regulatory Agency signed an agreement under a new trade strategy with Vietnam, simplifying the registration process for new medicines and vaccines and facilitating the sale of U.K.-manufactured medicines in the Southeast Asian market — a development that lowers market entry barriers for international pharmaceutical companies and accelerates patient access to new treatments.
Vietnam's strong vaccination infrastructure and government immunization programs are a parallel structural driver. According to the WHO, Vietnam achieved 99.0% coverage for the first dose of diphtheria, tetanus, and pertussis vaccine as of July 2025, while also achieving a 95.0% reduction in the number of unvaccinated children — reflecting exceptionally high public health program effectiveness. In July 2025, the Ministry of Health and UNICEF completed a nationwide rotavirus vaccination campaign under the National Expanded Programme on Immunization. These government commitments create sustained and predictable institutional demand for vaccines and related pharmaceutical products.
Rising focus on specialty medicine is a defining market trend. The increasing emphasis on targeted treatment, cell-based therapy, and advanced biologics for genetic disorders, rare diseases, blood disorders, and cancers is driving caregivers and companies toward the development and launch of novel specialty medicines. In August 2025, the Vinmec Research Institute of Stem Cells and Gene Technology announced the successful treatment of the first patient with T-cell immunotherapy for acute lymphoblastic leukemia — a milestone that highlights the emergence of advanced therapies within Vietnam's pharmaceutical ecosystem. A March 2025 study by the University Medical Center, Vietnam, also found significantly higher-than-expected prevalence of prediabetes and undiagnosed diabetes among the Vietnamese population, reinforcing the structural demand for chronic disease pharmaceutical products.
Market Restraints
Limited public access to new drugs is the primary restraint on market growth. Lengthy drug registration processes delay market entry, deter investment from global pharmaceutical companies, and reduce patient access to innovative treatments. According to the November 2024 National Assembly session, only 9.0% of new medicines had been introduced in Vietnam over the preceding decade — a penetration rate far lower than comparable Asia Pacific markets — illustrating the structural gap between the availability of novel therapies globally and patient access within Vietnam.
Segmentation Analysis
By type, drugs dominated the market, accounting for approximately 93.6% of market share in 2024. The vaccines segment is expected to grow at the highest CAGR during the forecast period, supported by increasing strategic activities among key players and domestic companies to expand vaccine production capacity in Vietnam. In May 2025, Sanofi strategically collaborated with the Vietnam Vaccine Company to transfer vaccine manufacturing technology, enabling local production of Sanofi vaccines and advancing Vietnam's pharmaceutical self-sufficiency and public health resilience.
By disease indication, oncology is projected to grow at the highest CAGR of 11.3% during the forecast period, driven by rising cancer incidence — with breast cancer identified as the most frequent cancer in Vietnam according to the Global Cancer Observatory 2022 report — and the increasing pipeline of oncology drug launches targeting the country. The respiratory segment is also expected to grow significantly, supported by high respiratory disease prevalence and new formulation development, including the May 2025 launch of LiveSpo NAVAX, a Vietnamese-developed nasal-spray probiotic product for the treatment of rhinosinusitis and otitis media in children.
By drug type, biologics and biosimilars accounted for approximately 40.2% of the market in 2024 and are expected to grow substantially during the forecast period, driven by increasing regulatory approvals for biosimilar commercialization. In March 2025, Bio-Thera Solutions and Dr. Reddy's Laboratories received commercialization and license agreements for BAT2206 (a proposed ustekinumab biosimilar) and BAT2506 (a proposed golimumab biosimilar) in Southeast Asia, including Vietnam — reflecting the accelerating pace of biosimilar market entry.
By route of administration, oral drugs are expected to hold the highest market share, benefiting from superior patient adherence, ease of administration, and a continuous stream of advanced oral formulations. In August 2024, Viet Phap International launched Akynzeo, an antiemetic drug for chemotherapy-induced nausea and vomiting. The parenteral segment supports hospital-based biological drug delivery and vaccine administration.
By age group, the pediatric segment held a significant share in 2024, anchored by high demand for vaccines and infectious disease treatments in the context of active government immunization programs. The adults segment is projected to grow at a CAGR of 9.4% — the fastest among age groups — driven by the expanding chronic disease burden among Vietnam's working and aging adult populations. By distribution channel, drug stores and retail pharmacies held the largest market share, with FPT Retail announcing plans in March 2025 to open 500 new pharmacies across Vietnam — combining pharmacy services with vaccination centers to improve patient access within and near healthcare facilities.
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Competitive Landscape
The Vietnam pharmaceuticals market features a mix of global multinational leaders and established domestic players. Key companies profiled include DHG Pharmaceutical Joint-stock Company (Vietnam), Imexpharm Corporation (Vietnam), Bidiphar (Vietnam), Sanofi (France), Bayer AG (France), Pfizer Inc. (U.S.), Abbott (U.S.), Merck and Co. Inc., AbbVie Inc. (U.S.), and AstraZeneca (U.K.). Pfizer, AbbVie, and Abbott are identified as the most prominent players, leveraging key product portfolios and strategic manufacturing capacity expansion to maintain market leadership. Domestic players including DHG Pharmaceutical, Imexpharm, and Bidiphar are expanding R&D investment and pursuing regulatory approvals to strengthen their positions in both branded and generic formulations. In December 2023, Bidiphar inaugurated a new manufacturing plant for anti-cancer drug production in Binh Dinh Province, while in September 2024, Takeda received Vietnam's Ministry of Health approval for its dengue vaccine — illustrating the continued pace of manufacturing investment and regulatory milestone activity shaping the market's competitive trajectory.
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