Logo of Phnom Penh Post newspaper Phnom Penh Post - VN pharma market forecast to grow 15%

VN pharma market forecast to grow 15%

Content image - Phnom Penh Post
An engineer works on a machine in DHG Pharmaceutical Co’s drug manufacturing plant in Can Tho city. Vietnam’s pharmaceutical industry is expected to recover and grow by 15 per cent this year. VIETNAM NEWS AGENCY/VIET NAM NEWS

VN pharma market forecast to grow 15%

Vietnam's pharmaceutical industry grew by just 2.8 per cent last year, much lower than its average 11.8 per cent growth in the last five years.

It is expected to recover and grow by 15 per cent this year, mainly due to a rapidly ageing population and increasing incomes, analysts at SSI Securities Corp said.

According to a report by the company, social distancing and strict control at hospitals last year meant people with minor ailments did not go for treatment due, resulting in lower sales of both prescription and non-prescription drugs.

The incidence of health checks was 10-15 per cent down until the fourth quarter.

Then, in the final quarter, after the pandemic was controlled, people again began going to hospitals that the number visiting hospitals went up by five per cent year-on-year.

Last year there was a short supply of active pharmaceutical ingredients (API) from China and India due to social distancing and lockdowns and higher demand for them globally, causing drug prices to rise.

India and China account for 55 per cent of the global API supply and nearly 70 per cent of Vietnam’s requirements.

The prices of most APIs increased by five-to-eight per cent and pharmaceutical companies’ gross profit margin decreased by one-to-three percentage points last year since they could not increase prices to compensate for this.

Construction of new pharmaceutical plants fell behind schedule.

According to the Ministry of Health, domestic drug production grew at 13.8 per cent per year in 2015-2019 backed by government policies and construction of new plants.

SSI Research said however the industry was recovering.

Last year was notable for mergers and acquisitions (M&A) in the industry. According to SSI Research, the total value of M&A deals was 1.68 trillion dong ($73 million) and they involved a number of foreign investors.

German generic drugmaker Stada paid 400 billion dong to increase its stake in Pymepharco JSC from 70 per cent to 76 per cent.

Japan’s Aska Pharmaceutical paid 350 billion dong to acquire a 25 per cent stake in Ha Tay Pharmaceutical JSC.



  • Kingdom's Covid cluster cases jump to 194

    The Ministry of Health on February 25 confirmed 65 new cases of Covid-19, with 58 linked to the February 20 community transmission. The latest cluster cases include nine Vietnamese nationals, five Cambodians, one each from Korea, Singapore and Japan, with the rest being Chinese. This brings the total number

  • Locations shut, dozens more Covid-19 positive

    The Ministry of Health has closed 23 locations in connection with the February 20 community transmission of Covid-19 and summoned for testing anyone who had direct contact with affected people and places. The number of discovered related infections has risen to 76, including 39 women. In a press release,

  • Preah Sihanouk hit with travel ban

    Preah Sihanouk Provincial Administration has announced a temporary travel ban to and from the province, except for ambulances and trucks transporting goods. The announcement came after prime minister Hun Sen called on people in the province to travel only if necessary, and that people not

  • Cambodia's Covid cluster cases rise to 137

    The Ministry of Health on February 24 recorded 40 more cases of Covid-19, with 38 linked to the February 20 community transmission. Of the 40, two are imported cases involving Chinese passengers. The 38 include two Vietnamese nationals and one Cambodian, with the rest being Chinese. This brings the total cases

  • Covid cluster raises alarm, health bodies urge vigilance

    The Ministry of Health and the World Health Organisation (WHO) in Cambodia have expressed great concern over the February 20 cluster transmission of Covid-19 in the community. Both entities appealed for vigilance and cooperation in curbing further spread of the virus. Ministry spokeswoman Or Vandine said

  • AstraZeneca jabs touch down in Phnom Penh airport

    The first shipment of 324,000 doses of the AstraZeneca/SII vaccine which was provided through the Covid-19 Vaccines Global Access (COVAX) Facility was delivered to Phnom Penh International Airport on March 2. The rest of the COVAX provided vaccines will arrive in Cambodia at a later date.