Vietnam's pharmaceutical market attracts many international pharmaceutical companies

With a population of nearly 100 million people and a sharp increase in healthcare spending (8.7 times higher in the past 30 years), the Vietnamese pharmaceutical market has attracted the attention of many international pharmaceutical companies. It is forecasted that this market will reach a value of up to 10 billion USD by 2026, creating great opportunities for international investors and pharmaceutical companies to enter and expand their operations here.

Tạp chí Doanh Nghiệp•14/03/2025

Vietnam is gradually becoming one of the bright spots in the global pharmaceutical industry, not only meeting domestic demand but also having great export potential thanks to strong development in the fields of research and production. With developing infrastructure and the need to treat chronic diseases, aging problems and infectious diseases, Vietnam is now a strategic market for the pharmaceutical industry. Therefore, large companies in the world are looking to expand their market share in Vietnam.

Photo caption — Mayoly inaugurated a representative office in Ho Chi Minh City.

In this context, Mayoly - one of the oldest pharmaceutical companies in France, has officially entered the Vietnamese market. With more than 116 years of experience in the pharmaceutical industry, Mayoly has decided to invest directly in Vietnam by establishing a representative office in Ho Chi Minh City, marking a major shift from distribution cooperation to direct investment. This event not only reflects Mayoly's confidence in the Vietnamese market but also demonstrates the company's long-term strategy in the Southeast Asian region.

Mr. Emmanuel Paint, Vice President of Global Operations of Mayoly said: "Vietnam aims to have the pharmaceutical industry reach the level of advanced ASEAN countries by 2045. Therefore, Vietnam is not only a consumer market but also an R&D center for specialized products in the digestive and neurological fields. Therefore, we wish to contribute to the development of the Vietnamese pharmaceutical industry, committing to invest 15 million Euros/year in R&D in Vietnam, focusing on tropical medicinal herbs and biotechnology".

Accordingly, Mayoly has identified three key strategies to dominate the pharmaceutical market in Vietnam. The first is the transfer of soft capsule production technology to the IPSEN CHC factory in Bien Hoa, which is expected to produce 400 million capsules per year from 2026. The second is the strategic cooperation with Hoang Duc Pharmaceutical Joint Stock Company, which accounts for 45% of the pharmacy market share in the Southern region. The third is product localization, adjusting 30% of the Smecta® formula to suit the Vietnamese physique, combining local herbs.

As a French company, Mayoly benefits greatly from the Vietnam-European Union Free Trade Agreement (EVFTA). Accordingly, 51% of EU pharmaceuticals will be exempted from tariffs as soon as the agreement comes into effect, helping Mayoly reduce transportation costs by up to 8%. This creates a great advantage for the company when entering the Vietnamese market, while also helping it access public hospital systems, which account for 65% of the pharmaceutical industry's revenue.