Vietnam's pharmaceutical market boasts immense potential

Leading industry experts and business representatives convened on the afternoon of July 31 in Hanoi to discuss Vietnam's pharmaceutical industry and its journey towards globalisation. The seminar provided a platform for sharing insights, experiences, and solutions for advancing Vietnam's medicine sector.

A doctor giving medicine to patients

Le Van Truyen, chairman of the Advisory Council for Drug Registration at the Ministry of Health, highlighted the significant changes in Vietnam's pharmaceutical industry over the past decade.

"Vietnam has experienced rapid growth, with a compound annual growth rate of 7.3 per cent. The current pharmaceutical market is valued at approximately $7 billion, with an average per capita drug consumption of $70–a 10-fold increase since 2000," Truyen said.

He noted that Vietnam is now among the countries with the highest pharmaceutical market value and growth rate globally. The market value surged from $2.7 billion in 2015 to $5.1 billion in 2018, and reached $6.1 billion in 2020. According to the World Health Organisation classification, Vietnam's pharmaceutical industry is at level 3, signifying the capability to produce generic drugs and export some pharmaceutical products.

Vo Thi Tuan Anh, chairman of Newtechco Group, which focuses on investment and connections in Vietnam's healthcare sector, also highlighted the potential for growth in the Vietnamese pharmaceutical market.

"The healthcare sector has made significant strides, ensuring a proactive supply of pharmaceuticals and medical equipment. With improved industry capabilities, many leading global pharmaceutical companies are eager to transfer new inventions to Vietnam, confident in the sector's potential," Anh said.

Tran Thi Thu, vice chairman of the Vietnam Pharmaceutical Enterprises Association, emphasised that the National Strategy for the Development of Vietnam's Pharmaceutical Industry outlines clear principles, goals, and a development roadmap.

"Vietnam aims to become a high-value pharmaceutical manufacturing hub in the region by 2030, with domestically produced drug exports reaching approximately $1 billion," Thu said.

The national strategy focuses on developing Vietnam's pharmaceutical industry to be on par with advanced countries in the region. It aims to ensure affordable drug access for citizens, enhance research capacity, and apply technology to produce original drugs and new formulations, with the goal of establishing Vietnam as a centre for manufacturing and technology transfer of original drugs in Southeast Asia.

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