Vietnam's pharmaceutical industry is all set to enter a more sustainable growth phase from 2026, building on strong momentum in 2025 and backed by supportive government policies, rising healthcare demand and expanding domestic production.
Market research firm Fortune Business Insights estimates the country's pharmaceutical market reached $7.94 billion in 2024 and $8.58 billion in 2025. It projects the market could grow to $16.03 billion by 2032, reflecting a compound annual growth rate (CAGR) of about 9.33%.
Meanwhile, IMARC Group values the market at $7.98 billion in 2025 and forecasts it will reach $14.6 billion by 2034, representing a CAGR of around 6.98% between 2026 and 2034.
Although projections vary, research firms agree that Vietnam remains one of the fastest-growing pharmaceutical markets in the region. Growth is underpinned by an ageing population, rising healthcare awareness and policies aimed at strengthening local production.
Strong financial results from leading domestic drugmakers underscore the sector's resilience. Hau Giang Pharmaceutical JSC posted net revenue of VND5.27 trillion ($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 annual target by 8.6%.
Imexpharm Corporation recorded net revenue of VND2.44 trillion ($93.12 million), up 11%, and net profit of VND349 billion ($13.32 million), an increase of 9% and its fourth straight year of profit growth. However, the company achieved 92% of its revenue target and 90% of its profit goal for the year.
Vietnam Pharmaceutical Corporation (Vinapharm) reported net revenue of VND5.52 trillion and a 38.5% jump in pre-tax profit to VND705 billion ($26.9 million), surpassing its profit target by 51% despite achieving 96% of its revenue goal.
Industry observers say demographic trends and closer collaboration between local and international firms will continue to fuel expansion. The government is also stepping up efforts to reduce reliance on imported medicines and raw materials through tax incentives and investments in manufacturing capacity.
In February 2025, authorities approved a national programme to develop the pharmaceutical and chemical industry through 2030, with a longer-term vision to 2045.
The plan aims to meet 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 sector is expected to evolve into a high-tech industry integrated into global value chains, with projected industrial output growth of 8-11% annually.
Data from the Drug Administration of Vietnam shows the pharmaceutical market has maintained steady annual growth of 6-8%. The country now 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 about 75% of exports, or roughly $230 million, while domestic firms contribute around $82 million. Key export destinations are in Asia, followed by Europe and Japan.
Recent regulatory reforms are also expected to streamline procurement procedures at public hospitals, addressing medicine shortages and strengthening the legal framework for drug purchases.
At the same time, rising foreign direct investment and growing pharmaceutical exports reflect increasing global confidence in Vietnam's healthcare sector. Digitalisation is reshaping the industry as well, with online pharmacies gaining traction by offering convenience, broader product access and competitive pricing.
Analysts say companies that invest in higher manufacturing standards, stricter quality control and stronger regulatory compliance will be best placed to compete as Vietnam's pharmaceutical industry moves toward deeper international integration and higher-value production.
