Vietnam's Pharmaceutical Market Reaches $7 Billion, Domestic Production Meets 60% of Demand

Vietnam's pharmaceutical market has reached a scale of approximately USD 7 billion, with domestic production currently meeting about 60% of the country's drug consumption volume. This was stated by Minister of Health Đào Hồng Lan at the ceremony celebrating the 30th anniversary of the Drug Administration of Vietnam. Over the past three decades, Vietnam's pharmaceutical industry has developed strongly, gradually enhancing its self-sufficiency capacity. Domestic production accounts for about 60% of the volume and 46% of the total value of drugs used. The average per capita drug consumption has increased many times compared to the beginning of the century, reaching about USD 70 per person. The country has 245 pharmaceutical manufacturing facilities, with 26 factories meeting EU-GMP standards or equivalent. Many businesses have invested in modern technology, mastered certain dosage forms, and are progressively producing high-tech drugs, expanding exports to markets with stringent standards. These achievements indicate an increase in the scale of domestic production capacity, improved quality, and technological advancement. The domestic pharmaceutical industry contributes to ensuring drug security, reducing dependence on external supplies, and enhancing people's access to medicines. According to representatives from the Drug Administration of Vietnam, the inspection system annually collects about 30,000-40,000 drug samples from the market to monitor quality during circulation and use. In 2025 alone, 943 batches of vaccines and medical biological products were reviewed before release. The rate of substandard drugs has been maintained below 1%, and counterfeit drugs below 0.1%, which is lower than the regional and global averages according to WHO assessments. The price of patented drugs in Vietnam is among the lowest in ASEAN, while generic drugs are 1.5-2 times lower than the regional average. However, the Minister acknowledged that the pharmaceutical industry still faces many challenges, including dependence on imported raw materials, limited capacity for research and development of new drugs, and insufficient participation in the global pharmaceutical value chain relative to its potential. The Drug Administration of Vietnam will continue to perfect its legal framework to ensure the full supply of quality drugs at reasonable prices, promote the development of the domestic pharmaceutical industry, especially for drug ingredients, high-tech drugs, and biological drugs. Simultaneously, it will strengthen quality control, combat counterfeit drugs, accelerate digital transformation, and build a professional drug management team. "Vietnam is striving to build a modern, self-reliant, and deeply integrated pharmaceutical industry, aiming to enhance drug research, production capabilities, and ensure people have access to quality medicines at reasonable costs," the Minister stated. Information Source: VnExpress