According to IQVIA’s report, Vietnam’s pharmaceutical sales reached 8.9 billion USD in 2024, ranking second in Southeast Asia; however, the country’s largest company, Hau Giang Pharmaceutical Joint Stock Company (DHG), is only valued at 511 million USD, significantly less than Indonesia’s PT Kalbe Farma Tbk (3.9 billion USD). The Vietnamese pharmaceutical industry consists of about 250 factories mostly producing generic drugs with thin profit margins, while Kalbe has heavily invested in research and development (R&D). In ASEAN, very few pharmaceutical companies exceed 1 billion USD in valuation. Major corporations in the US and Europe spend 15-20% of their annual revenues on R&D to create new medications protected by stringent patent laws. The financial results for the first half of 2025 indicate significant variations among domestic firms: some such as Imexpharm (IMP) and Binh Dinh Pharmaceutical (DBD) showed good growth, while many larger companies like the Drug Corporation (DVN) faced difficulties. The Vietnamese pharmaceutical sector is attracting foreign investments through M&A deals, and the upcoming Drug Law revisions effective July 2025 are expected to stimulate the market.
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