Posted 16.03. 2020 by Cekindo
In Vietnam, the pharmaceutical market is one of several sectors that contribute to the country’s economic developments. With a population of 96 million people, this industry shows positive growth.
In the last decade, the government has increased the number of imported drugs. This fact changes not only basic regulations about distribution but also advertising.
In the last two years, the country’s pharmaceutical market has grown by 10 percent to US$5.2 billion. This momentum offers promising opportunities for many potential suppliers.
According to the World Bank, many Vietnamese, especially those who live in cities, begin to pay more attention to their health. This makes the pharmaceutical sector getting more attention across the country.
According to the Chamber of Commerce and Industry of Vietnam, the pharmaceutical market in the country runs on a positive track.
Demands grow every year. one of many factors supporting this condition is that a lot of Vietnamese begin to care about their health. It makes a good development, which can be seen in the two-digit growth in current decades. This trend is projected to continue in some years ahead.
Foreign brands are commonly found in the industry. For instance, in the last two decades, Bayer HealthCare Pharmaceutical distributes its products to several important cities in the country, including Ho Chi Minh, Da Nang, and Hanoi. Bayer provides any kind of products, specifically for infectious diseases, cancer treatments, and women’s health issues.
Meanwhile, no less than 80% of Vietnamese buy pharmaceutical products from self-medicate and non-public pharmacies. People tend to buy their drugs without any prescription. Most of them use some information from friends and relatives to make decisions about what drug they should buy.
The pharmaceutical market in Vietnam was projected to increase radically from US$4.6 billion in 2017 to US$6.6 billion this year. This rapid growth contributes to the country’s per capita spending (for pharmaceuticals), from US$37 billion in 2015 to US$85 billion today.
Domestic firms mostly focus on producing and distributing generic products. Meanwhile, other products are imported from many countries. As a result, some of Vietnam’s pharmaceutical spending is coming from imports. The government spends US$2.1 billion for imported products to meet domestic product demands and only US$113 million on exported products.
All aspects of pharmaceuticals are regulated by The Drug Administration of Vietnam in the Ministry of Health. All products must have a registration number from authority.
Since foreign products are commonly sold in some areas, all drugs must follow the International standard made by the World Trade Organization. Generally, drug products from a foreign company collaborate with local suppliers and distributors and build a joint venture.
Vietnamese really care about their health, especially those who live in cities. It is in a positive trend over the past three decades. It can be seen in mortality rates for mothers that significantly lower. The number of newborn and children under five are the same. In other words, this phenomenon indicates some diseases causing deaths are gone.
But, at the same time, Vietnam’s health problems are constantly facing some issues. The biggest thing that still becomes the main concern to be solved is the existence of noncommunicable diseases, such as cancer, diabetes, and cardiovascular. These non-communicable diseases contribute to more than 70% of total death in the country.
Bad pollution and water supply become unpredictable things that can make everything worse. Unhealthy Western diet trends also have a negative impact. There is a growing number of Vietnamese suffering some health issues related to diets, one of them is diabetes.
Market research and analysis is an important aspect to build your business in the target area. To reach the goal, you need to know what is the potential market in a territory, suitable products for the market, and potential local partner to support your business in the new target area.
As a leading consulting firm in Vietnam, Cekindo has all the resources required to perform extensive market research and analysis.
Furthermore, we have a team of professional consultants and legal practitioners with extensive knowledge and experience in assisting foreign investors in incorporating their businesses in Vietnam through our one-stop services that include company registration and pharmaceutical product registration.
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