Vietnam’s pharmaceutical industry reached sales of $8.9 billion by the end of 2024, surpassing Thailand and the Philippines, yet trailing behind Indonesia. Indonesia’s largest pharma company, Kalbe Farma, has a market capitalization of $3.9 billion, greater than the combined value of the top 10 Vietnamese firms, with Hau Giang Pharmaceutical (DHG) at only $511 million. The Vietnamese market is fragmented, primarily producing generic drugs, leading to thin profit margins. In contrast, Kalbe invests in R&D and diversifies its product portfolio. Vietnamese pharma companies face significant business challenges. A few firms like Imexpharm and Binh Dinh Pharmaceutical recorded positive growth, while many large companies suffered losses. Despite difficulties, Vietnam’s pharmaceutical sector attracts foreign investment through M&A. The revised Pharmacy Law effective July 2025 is expected to provide a boost by enhancing access to quality drugs and promoting domestic production.
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