According to the Drug Administration of Vietnam, the total value of the Vietnamese pharmaceutical market in 2023 was estimated at US$8 billion and is projected to grow strongly to $20 billion by 2045. This places Vietnam among the fastest-growing pharmaceutical markets worldwide. However, the segment dominated by leading players remains primarily a “playground” for foreign businesses.
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A part of the production line for packaged drugs at Imexpharm’s EU-GMP factory. Photo courtesy of Imexpharm |
The national strategy for developing the Vietnamese pharmaceutical industry to 2030, with a vision to 2045, aims to meet 80% of domestic drug demand and capture 70% of market value. This ambitious objective has sparked an investment race among pharmaceutical enterprises striving for a competitive edge in the upcoming period.
However, as of October 2024, data from the Drug Administration of Vietnam indicates that the country has approximately 288 drug manufacturing facilities meeting GMP principles. Of these, only about 31 meet EU-GMP or equivalent standards (Japan-GMP), accounting for just over 10%, while the majority comply with WHO-GMP standards.
The market has seen the rise of prominent brands such as Imexpharm, DHG Pharma, and StellaPharm among the Top 10 in terms of revenue. Notably, Imexpharm has emerged with its capacity to produce high-quality drugs that meet EU-GMP standards, setting a new trend in the Vietnamese pharmaceutical market.
The pharmaceutical industry is considered a key sector requiring focused resources and growth motivation from each enterprise. The goal is to position Vietnam as a center for high-value pharmaceutical production in the region by 2030, with the export value of domestically produced drugs expected to reach around $1 billion.
Targeting the Asian market
Imexpharm Pharmaceutical JSC recently increased its charter capital to VND1,540 billion ($60.68 million), making it one of the companies with the highest charter capital in the domestic pharmaceutical industry. This is a positive sign in the context of a fragmented industry with many small companies facing limited financial capacity. A robust financial foundation enables Imexpharm to invest heavily in R&D, high-tech pharmaceutical production, and pharmaceutical innovation, ensuring stable domestic drug supplies.
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Discussion session at Imexpharm’s General Meeting of Shareholders. Photo courtesy of Imexpharm |
“A strong financial foundation enables the company to invest in technology and keep up with the dramatic changes in the pharmaceutical market structure that lie ahead,” said Tran Thi Dao, General Director of Imexpharm. “Additionally, we are ready for both digital and green transformations to compete on an international scale.”
Imexpharm is recognized as a pioneer in Vietnam in technology investment over the past decades. With R&D accounting for 5% of its revenue, the company currently boasts the highest number of high-tech pharmaceutical production lines meeting EU-GMP standards in Vietnam, with 11 lines across three factory clusters. This advantage has allowed Imexpharm to dominate the antibiotic and cough medicine segment, even surpassing foreign enterprises.
The company has achieved success in both the ETC (Ethical/Prescription) and OTC (Over-the-Counter) channels, reflecting the positive impact on domestic pharmaceutical companies amid increasing social demand and the risks from epidemics and supply chain disruptions.
According to its recent financial report, Imexpharm’s revenue in the first nine months of the year increased by 12% over the same period last year, reaching VND1,553 billion ($61.2 million), achieving 66% of the year’s revenue target. Pre-tax profit in September rose sharply by 42% compared to the same period last year and 43% over August. In 2024, Imexpharm aims to reach net revenue of VND2,365 billion ($103.83 million) and a pre-tax profit of VND423 billion ($16.67 million), marking respective increases of 19% and 12% over the previous year.
“With the current growth momentum in the first nine months, the company is approaching the target set by the General Meeting of Shareholders and is likely to set a record profit for the third consecutive year,” said Nguyen An Duy, Deputy General Director of Imexpharm Finance.
In the first nine months of 2024, the company launched 16 new products and is managing 99 ongoing R&D projects. In addition to traditional dosage forms, Imexpharm is capable of developing innovative dosage forms and new technologies in pharmaceutical production. By providing quality and reasonably priced specialty drugs, the company has replaced imported drugs in many hospitals, enhancing competitiveness in the domestic market and creating barriers for foreign pharmaceutical companies.
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Staff working in the lab of Imexpharm’s EU-GMP-certified IMP4 High-Tech Factory. Photo courtesy of Imexpharm |
Thanks to thorough preparation, Imexpharm’s products are gaining popularity in the market, contributing to the company’s improving business results. Along with its three EU-GMP-standard factory clusters, Imexpharm recently announced plans to build the Cat Khanh Pharmaceutical Factory Complex Project in Dong Thap.
Experts believe that the growth of potential large-scale pharmaceutical companies like Imexpharm will enhance Vietnam’s production and supply capacity while boosting its pharmaceutical export potential, laying a firm foundation for Vietnam to become a regional pharmaceutical supply center.
