According to IQVIA’s report, Vietnam’s pharmaceutical market reached a revenue of $8.9 billion, ranking second in Southeast Asia, but the market capitalization of the top 10 pharmaceutical companies in Vietnam is only a fraction of Indonesia’s Kalbe Farma (valued at $3.9 billion). Vietnam has about 250 manufacturing firms primarily producing generic drugs with thin profit margins, while Kalbe invests heavily in R&D and has a diverse product portfolio. Both markets depend on imported raw materials. In ASEAN countries, few pharmaceutical companies exceed a market cap of $1 billion. In the first half of 2025, some firms like Imexpharm and Binh Dinh Pharmaceutical achieved growth, while many others reported revenue declines. The stock performance for the pharmaceutical sector is also underwhelming. Nevertheless, Vietnamese pharmaceutical companies continue to attract foreign investment through M&A deals. The revised Drug Law is expected to drive the development of Vietnam’s pharmaceutical sector.
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