Illustration courtesy of World Economic Forum.

Market size projected to reach up to $14.6 billion

Vietnam is one of the fastest-growing pharmaceutical markets in the region, according to market research firm Fortune Business Insights. The firm estimates the market reached $7.94 billion in 2024 and $8.58 billion in 2025, and could expand to $16.03 billion by 2032, implying a compound annual growth rate (CAGR) of about 9.33%.

Meanwhile, research company IMARC Group estimated the market at $7.98 billion in 2025 and forecast it to grow to $14.6 billion by 2034, representing a CAGR of around 6.98% between 2026 and 2034.

Despite differences in projections, international research organizations agree that Vietnam’s pharmaceutical market has significant room for expansion, driven by supportive government policies and rising healthcare demand as the population ages.

Strong financial results from major domestic drugmakers also highlight the sector’s growth momentum.

Hau Giang Pharmaceutical JSC reported net revenue of VND5.27 trillion dong ($201 million) in 2025, up 7.8% year-on-year, while pre-tax profit rose 12.8% to VND1.02 trillion ($38.94 million), exceeding its pre-tax profit target for the year by 8.6%.

Imexpharm Corporation posted net revenue of VND2.44 trillion ($93.12 million) in 2025, up 11% from the previous year, while net profit reached a record VND349 billion ($13.32 million), up 9%, marking the fourth consecutive year of profit growth.

However, compared to the plan from the 2025 AGM, the company only achieved 92% of its revenue target and 90% of its profit purpose for the year.

Meanwhile, Vietnam Pharmaceutical Corporation (Vinapharm) recorded net revenue of VND5.52 trillion (VND210.57 million), up slightly, while pre-tax profit surged 38.5% to VND705 billion ($26.9 million), significantly outperforming the year's profit target.

Compared to the set plan, although only achieving about 96% of the revenue target, the corporation exceeded its profit purpose by 51%.

Growth outlook brightens for 2026

Industry analysts say demographic trends, new government policies, and increasing cooperation between international and domestic companies are expected to drive further growth in the pharmaceutical sector.

According to IMARC, Vietnam is placing greater emphasis on boosting domestic pharmaceutical production to reduce reliance on imports. Government initiatives - including tax incentives and investments in manufacturing facilities - aim to strengthen the country’s capacity to produce medicines locally, improve competitiveness, and enhance access to essential drugs.

In February 2025, the Government approved a national program to develop Vietnam’s pharmaceutical and chemical industry through 2030, with a vision to 2045. The plan targets meeting 20% of domestic demand for pharmaceutical raw materials by 2030 and 50% of raw materials used in functional foods and pharmaceutical cosmetics.

By 2045, the industry is expected to evolve into a modern high-tech sector capable of participating in global pharmaceutical value chains, with industrial output growth projected at 8-11% annually.

Data from the Drug Administration of Vietnam shows the country’s pharmaceutical market has maintained stable annual growth of 6-8%.

Vietnam currently has 67 companies exporting medicines and pharmaceutical ingredients, with total export turnover reaching $312 million in 2025 - ranking fourth in Southeast Asia.

Foreign-invested enterprises account for roughly 75% of exports, equivalent to about $230 million, while domestic firms contribute around $82 million. Key export markets include Asia, followed by Europe and Japan.

Policy reforms are also expected to ease procurement procedures in the hospital channel. The Ministry of Health recently issued new regulations on drug procurement at public healthcare facilities aimed at improving the legal framework and addressing medicine shortages.

At the same time, rising FDI signals growing international interest in Vietnam’s healthcare sector, while increasing pharmaceutical exports reflect stronger global confidence in locally produced medicines.

Digital transformation is also reshaping the market, with online pharmacies gaining prominence as they offer patients greater convenience, wider product access, and more competitive pricing.

Looking ahead, industry experts say companies investing heavily in manufacturing standards, quality control, and regulatory compliance will be better positioned to compete as Vietnam’s pharmaceutical sector moves toward higher quality and international integration.