Vietnam: The growing OTC and pharma market in South East Asia
Vietnam’s self-medication and pharma market is one of the fastest-growing markets in South-East Asia and is expected to continue growing in the next few years. Discover all the opportunities this market has to offer in this article:
Vietnam is one of the most promising OTC and pharma markets in Asia. This market in Vietnam is projected to be worth USD 25,8 billion ex-factory in 2035. Rising drug consumption and government investment contribute to the country’s attractive consumer healthcare and Rx market.
Vietnam’s current population is nearly 100 million people while its per capita income is 2,750 USD. The country is one of the fastest-growing economies in the world. Along with that, the population is aging while income is increasing and health issues are being paid more attention to. Therefore, spending on health products also increases. In 2005, per capita drug spending was $9.85, in 2010 it was $22.25 and in 2019 it was $75. The average growth rate in the period 2010-2019 is 14.8%.
In 2020, the revenue of the over-the-counter (OTC) drug market in Vietnam amounted to 1,4 billion U.S. dollars and should reach USD 6,76 billion in 2035. Meanwhile, prescription drugs had total revenue of USD 3.91 billion in 2020 and are expected to reach USD 19 billion in 2035.
In terms of market share, the largest Vietnamese drug companies include Duoc Hau Giang, VIET NAM FUMIGATION JSC, and PYMEPHARCO. The biggest Healthcare expenditure in Vietnam is in the out-of-pocket segment, with national health insurance only covering a small section of the population and private expenditure accounting for around 70% of spending. In terms of pharmacy chains, there is one ‘local giant’, Pharmacity Jsc.
As a fast-growing economy in Asia, Vietnam presents a tremendous opportunity for foreign healthcare firms to establish themselves in a promising Emerging Market.
If you are planning on entering the Vietnamese Pharma market, our expertise and long-standing network can support you. Chameleon Pharma Consulting’s knowledge of the Vietnamese market is based on multiple projects over the past 10 years. All our experts have at least 20 years of experience, and we have supported several leading European and international companies in entering the Health care and Pharma sectors of Vietnam.
The Vietnamese OTC and pharma market in 2035
USD 25,8 billion
OTC and pharma market size, ex-factory
10 – 12%
OTC and pharma market growth
Vietnam in numbers
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