Market Insight: Pharmaceuticals in Vietnam
Vietnam’s pharmaceuticals market is on a rapid growth trajectory, with projected revenues expected to reach US$2.24 billion in 2024. Over the next few years, the market is anticipated to grow at a compound annual growth rate (CAGR) of 6.53%, resulting in a market volume of US$2.89 billion by 2028. Understanding these insights is valuable for stakeholders involved in the country’s prescription drug market. In this article, we will explore the key statistics and drivers of the market, provided by our expert Vietnam healthcare consulting team at Eurogroup.
Leading Segments & Customer Preferences in Vietnam Medicine Market
The most substantial segment within this market is Oncology Drugs, forecasted to achieve a market volume of US$403.30 million in 2024. Vietnamese consumers prioritize affordability and accessibility in healthcare, which has significantly influenced their pharmaceutical purchasing behaviors. Generic drugs, known for their cost-effectiveness, have surged in popularity and now represent a substantial portion of the market. This preference is driven by the need for budget-friendly medical solutions that do not compromise on quality. Additionally, there is a rising demand for over-the-counter (OTC) medications for common ailments such as headaches and colds, reflecting the consumers’ preference for convenience and immediate relief.
Trends in the Healthcare Market
The Vietnamese pharmaceutical market has demonstrated robust growth in recent years, boasting a CAGR of approximately 10%. This upward trend is expected to persist as the population ages and chronic diseases become more prevalent. The Vietnamese government has been proactive in implementing policies that encourage domestic pharmaceutical production, resulting in increased investment within the industry. This strategic push not only bolsters local manufacturing capabilities but also aims to reduce dependency on imported drugs.
Furthermore, the adoption of modern healthcare technologies and practices is transforming the market landscape. The integration of digital health solutions, such as telemedicine and e-pharmacies, has made healthcare services more accessible, particularly in rural areas. These advancements are set to drive further growth and innovation in Vietnam’s pharmaceutical market.
Vietnam’s Pharma Industry: Local Special Circumstances
One distinctive feature of the Vietnamese pharmaceutical market is the significant role of traditional medicine. A considerable segment of the population continues to prefer traditional remedies, such as herbal medicines, over Western pharmaceuticals. This cultural inclination has fostered a thriving market for traditional medicine, which coexists with modern pharmaceutical products. The government supports this dual approach by promoting the use of safe and effective traditional remedies, ensuring that consumers have a wide range of healthcare options.
Underlying Macroeconomic Factors
Vietnam’s rapid economic growth and the rise of the middle class have been pivotal in the expansion of the pharmaceutical market. As the population becomes more affluent, there is an increased ability to afford better healthcare options, including high-quality pharmaceuticals. The government’s commitment to enhancing healthcare infrastructure and broadening access to healthcare services has further fueled this growth. Efforts to improve hospital facilities, increase the number of healthcare professionals, and expand insurance coverage are making healthcare more accessible to the general population.
Conclusion
In conclusion, Vietnam’s pharmaceuticals market is poised for continued growth, driven by increasing demand for affordable healthcare, supportive government policies, and a blend of modern and traditional medicine practices. For stakeholders involved in Vietnam healthcare, understanding these market dynamics is crucial for navigating this rapidly evolving landscape. The insights provided here highlight significant opportunities for investment and development within Vietnam’s pharmaceutical market. As the market continues to expand, Vietnam healthcare consulting firms will play a vital role in guiding businesses to capitalize on emerging trends and overcome industry challenges.
