According to IQVIA’s overview report, Vietnam’s pharmaceutical sales reached $8.9 billion, ranking second in Southeast Asia after Indonesia. However, the largest Vietnamese pharmaceutical company, Hau Giang Pharmaceutical (DHG), is valued at only $511 million, far less than Indonesia’s giant Kalbe Farma, valued at $3.9 billion. The Vietnamese pharmaceutical market is fragmented with 250 factories primarily producing generic drugs, leading to thin profits and limited breakthrough developments. Major companies in both countries rely on imported raw materials. Meanwhile, Kalbe Farma has invested more in research and development. The first half of 2025 shows a mixed performance: Imexpharm and Binh Dinh Pharmaceutical recorded growth, while the General Pharmaceutical Company and many others struggled. Profit declines have left pharmaceutical stocks overlooked in the stock market, but the industry continues to attract foreign investment. The revised Pharmaceutical Law, effective July 2025, is expected to improve the situation.
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