Spending on pharmaceuticals in particular has seen rapid growth, with the average person spending $22.25 in 2010, then $37.97 in 2015, reaching approximately $75 in 2022. It is expected that the average Vietnamese citizen will be spending $163 on pharmaceuticals by 2025.

However, Vietnamese people face many difficulties in accessing new drugs or their generic variations. Less than 10 per cent of the 460 new drugs that became available between 2012 and 2021 were available in Vietnam in 2022. In addition, the proportion of generic drugs used in medical facilities in Vietnam is only 11 per cent - quite low compared to the average in the Asia-Pacific region at just over 27 per cent.

Addressing this concern is crucial to meeting the demand for high-quality drugs at reasonable prices.

The government has issued many preferential policies over the past decade for the development of the pharmaceutical industry so it can play a part in producing innovative drugs and high-quality generic alternatives.

Imexpharm (IMP) is one firm hoping to rise to the occasion as it works to improve the quality of its personnel and production infrastructure, and expand its relationships with reputable international partners. Towards the end of February, IMP signed a strategic cooperation agreement with the South Korean pharmaceutical group Genuone Science Inc. to transfer technology used in the production of high-quality generic and speciality drugs with the aim of bringing down costs for patients.

IMP focusses on investing in the research and development (R&D) of new products, especially those with high technology content, then offering them at reasonable prices on the Vietnamese market.

With 11 EU-GMP standard production lines across three modern factories, IMP has the largest cluster of factories and the highest number of EU-GMP lines in Vietnam of any pharmaceutical firm.

"Focusing on investing in EU-GMP standards enhances Imexpharm's competitiveness with foreign pharmaceutical companies in the domestic market and is also a solid step forward for the firm as we enter the global pharmaceutical supply chain," said Tran Thi Dao, general director of Imexpharm.

Drug production at Imexpharm Pharmaceutical JSC

IMP is targeting export market expansion and is poised to enter new markets within the ASEAN region. Last year, IMP participated in major international pharmaceutical events such as CPHI Worldwide in Barcelona, Spain and surveyed potential export markets such as Cambodia and Myanmar.

The company is committed to maintaining and strengthening its collaborations with international partners and solidifying its position as a preferred contract manufacturing partner for top multinational pharmaceutical corporations such as Sandoz, DP Pharma, Galien, Pharma Science Canada, and Sanofi - Aventis.

Through substantial investments in R&D and strong growth expectations in the export segment, IMP is asserting its position within the Vietnamese pharmaceutical industry. This strategy should allow the company to meet domestic demand for medicine in a timely manner while gearing up to contribute to the shared goal of transforming Vietnam into a regional hub for high-value pharmaceutical manufacturing.