The global pharmaceutical industry is navigating a period of rapid innovation and complex challenges, from shrinking profit margins to evolving geopolitical threats. Within this context of global economic dynamics, Vietnam is emerging as a critical hub in the life sciences landscape. The nation's pharma industry is entering a new era, propelled by a convergence of […]
The global pharmaceutical industry is navigating a period of rapid innovation and complex challenges, from shrinking profit margins to evolving geopolitical threats. Within this context of global economic dynamics, Vietnam is emerging as a critical hub in the life sciences landscape.
The nation's pharma industry is entering a new era, propelled by a convergence of digital transformation, supportive government policies, and rising healthcare demand. However, significant challenges remain, including regulatory compliance hurdles and a fragmented supply chain.
This article provides an essential guide for pharma executives on the current trends shaping Vietnam's pharmaceutical market in 2025, blending policy insights with actionable commercial strategies.
Key Takeaways:
- ASEAN-Leading Growth: Vietnam's pharma market is projected to exceed USD 10 billion by 2026, positioning it as a leader among regional emerging markets.
- Strategic Government Policy: The pharmaceutical sector is designated a national priority, with policies designed to streamline drug approvals and encourage local drug production.
- Digital Transformation: Leading companies are rapidly adopting artificial intelligence and digital health platforms to optimize the supply chain and accelerate drug discovery.
- M&A Boom: Robust M&A activity signals strong investor confidence in the long-term potential of the Vietnamese pharma sector.
- FDI as a Key Driver: Evolving regulations are opening new pathways for FDI, particularly in advanced manufacturing and clinical research.
Current Trends In The Pharmaceutical Industry: Vietnam's Market Overview 2025
Vietnam's pharmaceutical industry is on a powerful growth trajectory, underpinned by strong economic fundamentals and strategic government backing. This expansion is reshaping the entire healthcare ecosystem.
Market Size And Growth Outlook
According to an IQVIA Vietnam pharmaceutical industry report (as cited by VnEconomy, 2024), sales reached USD 8.88 billion in 2024, surpassing other regional markets. The Ministry of Health projects the market will exceed USD 10 billion by 2026, driven by an expanding healthcare system and increased access to new drugs.
Government Strategy And Policy Orientation
The government has positioned the pharmaceutical sector as a strategic national priority in decision No. 1165/QD-TTg National strategy for developing Vietnam's pharmaceutical industry for the period up to 2030, vision to 2045. According to the Government News portal (2025), the national strategy emphasizes achieving parity with advanced countries. Key policy pillars are designed to support pharmaceutical companies through:
- Prioritizing high-value segments: Focusing on biotechnology and advanced therapeutic modalities.
- Modernizing regulations: The revised Law on Pharmacy will streamline the path for drug approvals and grant priority to EU-GMP producers, a key focus for local regulatory bodies.
- Attracting targeted investment: Creating a welcoming environment for FDI in manufacturing and the drug development ecosystem.
Infrastructure And Manufacturing Capacity
Vietnam’s industrial foundation is robust, with about 294 of Good Manufacturing Practice (GMP)-compliant factories and 28 facilities own production lines that meet EU-GMP standards or equivalent (as of April, 2025). This infrastructure is critical for building a resilient supply chain for drug production and meeting international standards for patients worldwide.
The Role Of Artificial Intelligence And Digital Health In Drug Discovery
Emerging technologies are revolutionizing the pharma industry, moving it beyond traditional pharma models. Artificial intelligence and advanced analytics are central to this shift, improving everything from drug research to patient engagement.
AI Technology Redefining Operations And Decision Making
Pharmaceutical companies are adopting digital tools to modernize. AI technology is now key for:
- Optimizing the supply chain: Using AI models for predictive demand forecasting.
- Enhancing R&D: Accelerating the identification of potential drug candidates.
This shift is forcing companies to rethink traditional methods of operation to remain competitive. A major focus is on improving supply chain management to ensure reliability.
The Next Phase In Life Sciences: Biotech And Precision Medicine
The frontier of the life sciences in Vietnam is focused on innovation. Key areas include:
- Accelerated Drug Discovery: Using AI models to analyze how compounds interact with the human body, dramatically speeding up the early phases of drug discovery.
- Precision Medicine: Developing targeted therapies for complex diseases by analyzing patient responses through real world data found in electronic health records. This approach to drug development promises to improve patient outcomes.
- Modernizing Clinical Research: Moving from traditional clinical trials toward decentralized clinical trials. This shift enhances patient safety and leverages digital health platforms for more efficient data collection and analysis during the clinical development phase.
Navigating Drug Development And Clinical Trials: The Regulatory Landscape
For foreign investors, navigating the legal landscape and engaging with regulatory agencies is a significant challenge.
Regulatory Framework For Clinical Development And Investment
Law amending and supplementing a number of articles of Pharmacy Law No. 44/2024/QH15 and relevant new regulations create greater opportunities for FDI in manufacturing. However, navigating the rules set by regulatory bodies requires deep local expertise.
M&A And Joint-Venture Trends Shaping The Sector
A flurry of M&A activity serves as a testament to investor confidence. According to StellaPharm (2025), notable transactions such as South Korea's Dongwha Pharm spent $30 million to buy 51% of Trung Son Pharma retail chain; Singapore's Thomson Medical Group acquired FV Hospital; KKR acquired a majority stake in Medical Saigon Group from Heliconia Capital, which highlight how investors are capitalizing on the market's growth.
Viettonkin Insight - Practical Market-Entry Pathways
Based on our experience, three viable models exist for investors:
- Mergers & Acquisitions (M&A): For immediate market access.
- Joint Ventures (JVs): To leverage local expertise from the partners.
- Contract Manufacturing: A lower-risk option to manage the complexities of the local supply chain; however, with this option, foreign investors will not be able to have a commercial presence in Vietnam.
Local Value Chains And Workforce Development
A major challenge for the pharmaceutical industry is the development of resilient local supply chains.
Local Manufacturing Self-Sufficiency Goals
The government aims for 70% domestic production of raw materials, including active pharmaceutical ingredients, by 2030. This ambitious goal is crucial for strengthening the national supply chain and ensuring a stable supply of medicine. Building these supply chains is a core part of the national strategy.
Talent Upskilling And Technology Transfer
Expanding university-industry partnerships is essential for training experts who can manage a modern drug development process and a complex supply chain.
Strategic Outlook: The Future Of The Clinical Trial And Decentralized Clinical Trials In Vietnam
The outlook for Vietnam's pharmaceutical industry is strong, with compelling opportunities in high-growth niches.
Emerging Investment Hotspots
High-potential sectors are rapidly emerging. Key areas to watch include:
- Clinical Trial Services: Growing demand for both traditional and decentralized clinical trials.
- Digital Health Platforms: Tools to improve medication adherence, analyze medical records, and track the patient journey.
- Supply Chain Logistics: Specialized services for the pharmaceutical supply chain.
Viettonkin Perspective On Partnerships
Successfully navigating this market requires a partner who understands the local landscape. We help clients build strategies to manage the intricate supply chain and capitalize on opportunities in drug discovery and digital health.
Frequently Asked Questions
What is the single biggest opportunity for foreign investors in Vietnam’s pharma market in 2025?
The biggest opportunities lie in high-tech manufacturing and supporting the clinical trial ecosystem. As the drug development pipeline grows with new drugs targeting therapeutic targets for complex diseases, the need for advanced clinical research services and robust supply chains will expand dramatically.There are also preferential development policies when investing in the pharmaceutical sector.
How should a foreign company structure its entry into Vietnam's pharmaceutical market?
The optimal structure depends on the company's goals, but M&A offers immediate access, JVs leverage local knowledge, and contract manufacturing minimizes risk. The key is to choose a path that aligns with the complex demands of the local supply chain and regulatory environment.
What is the most significant regulatory change affecting FDI in Vietnam's pharma industry?
The amended Law on Pharmacy is the most critical change. It simplifies the clinical trial and approval process, directly impacting the entire drug development process. This reform aims to attract high-quality FDI and integrate real world evidence more effectively into regulatory decisions, using data from medical records to accelerate innovation.
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