Indonesia’s largest pharmaceutical company is valued more than the combined total of the 10 largest Vietnamese pharmaceutical companies. PT Kalbe Farma Tbk has a market capitalization of approximately $3.9 billion, while Vietnam’s largest company, DHG, has only $511 million. Vietnam’s pharmaceutical market reached $8.9 billion, ranking second in Southeast Asia, but remains fragmented with many companies focusing on low-margin generic drugs. In contrast, companies like Kalbe invest heavily in R&D and product diversity. Although both countries import raw materials, Kalbe excels in offering a range of diverse products. Amid a decline in revenue and profits for several Vietnamese companies, the pharmaceutical sector still attracts foreign investment through M&A transactions. The recently revised Drug Law, effective July 2025, is expected to boost Vietnam’s pharmaceutical sector by improving the business environment and ensuring quality drug access for the population.
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