Vietnam’s pharmaceutical industry reached sales of $8.9 billion, ranking second in Southeast Asia after Indonesia, whose largest firm, Kalbe Farma, has a market capitalization of $3.9 billion. Despite a large population and a growing market, Vietnam mainly produces generic drugs with thin profit margins, limiting local competition. While major foreign firms invest heavily in R&D and diversify product offerings, Vietnam’s market is fragmented and faces difficulties. The first half of 2025 showed declining profits for many firms, but a wave of mergers and acquisitions from foreign corporations is attracting investment and opportunities for growth. The amended Pharmaceutical Law also aims to provide momentum for the domestic industry and improve citizen access to quality medications.
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