Ken Research - Vietnam Pharmaceutical Market | Page 2

The pharmaceutical market recorded growth at a CAGR of ~% during 2012-2017 increasing from USD ~
billion in 2012 to USD ~ billion in 2017, driven by rise in self-medicating culture and OTC drug sales.
Foreign entities are not allowed to engage in distribution activities; hence, they typically conduct
marketing activities through representative offices or local drug distributors. Heightened regulatory
environment for drug manufacturing has enabled entities which comply with regulatory standards to
remain competitive.
Market Segmentation
By Generic and Patented Drugs: Generic drugs dominated the pharmaceutical market with higher
revenue share of ~% in the in 2017. Most common generic drugs sold in the market include antibiotics
and pain killers. Patented drugs followed generic drugs segment and generated ~% revenue share in
2017. Currently all patented drugs are imported for local consumption. Widely imported patented drugs
include high-value specialty drugs for oncology and diabetes management.
By Prescribed Drugs and OTC Drugs: Prescribed drugs dominated the pharmaceutical market with
higher revenue share of ~% in the in 2017. Drugs prescribed by clinicians mostly consisted of imported
and patented drugs. OTC drugs followed prescribed drugs segment and generated ~% revenue share in
2017. Sales of OTC drugs have been on an incline owing to rise in trend of self-medication in Vietnam.
About 88-91% of antibiotics are sold via OTC channel.
By Therapeutic Drugs (Metabolism and Nutritional Medicine, Cardiovascular, Central Nervous System,
System Infection, Oncology, Musculoskeletal, Respiratory and Others): Metabolism and Nutritional
Medicine dominated the therapeutic drugs in pharmaceutical market with highest revenue share of ~%
in the in 2017. Pharmaceutical market has witnessed high demand for nutritional and metabolism health
supplements especially for segments including skin care, anti-aging, eye health and digestive health.
Antibiotic consumption has risen steeply in the last few years. Recent statistics reveal that about ~% to
~% of all antibiotics were sold without prescription in Vietnam. Others include contraception,
gastrointestinal, skin, allergy, endocrine, analgesic and contributed ~% revenue share in the therapeutic
drugs in the pharmaceutical market.
Future Outlook to Vietnam Pharmaceutical Market
The pharmaceutical market is expected to record growth at a CAGR of ~% during 2017-2022, driven by
rise in utilization of generic drugs, especially those manufactured locally. Generic drug usage will
continue to rise in future owing to rising number of drug manufacturers and government’s push for
production and utilization of locally produced. Prescribed drugs will dominate the pharmaceutical
market but there will be increase in the OTC medication due to self medication. Antibiotics, Vitamins
and dietary supplements will continue to attract heavy demand through OTC channel. Demand for
oncology drugs and system infections medicine is expected to become almost ~ times the size in 2017