Merger and acquisition (M&A) activities between domestic and foreign pharmaceutical companies are being seen in both production and distribution.

Most recently, Japan’s Aska Pharmaceutical signed an agreement to acquire a 24.9% stake in Vietnamese pharmaceutical company Hataphar, formally the Ha Tay Pharmaceutical JSC.

Other major names in global pharmaceuticals are present in Vietnam, including the Abbott Group from the US and the Adamed Group from Poland.

In the context of COVID-19, pharmaceutical companies are expected to enjoy substantial benefits and breakthroughs into the future.

The greatest challenge at the moment is that 80-90% of raw materials are imported, primarily from China and India. In the first two months of this year, when the pandemic first broke out, material imports from the two countries fell 30% and 25.8%, respectively, to US$27.2 million and US$9.4 million.

Market researchers IBM said the size of Vietnam’s pharmaceutical industry could reach US$7.7 billion in 2021 and US$16.1 billion in 2026, while researchers IMS Health forecast that per capita spending on pharmaceuticals in the country would rise to US$50 this year.