More and more domestic pharmaceutical firms have recently announcedplans to expand their production as the market has shown signs ofpicking up in recent months, an English language news website reported.
Accordingto the VietNamNet Bridge, in Vietnam, there are 178 pharmaceuticalmanufacturers, including 100 western medicine and 78 oriental medicineenterprises, about 300 oriental medicine manufacturers, and numerousdistributors of imported drugs.
Although Vietnam inheritedEastern traditional medicine from their ancestors, the country can nowproduce only 50 percent of domestic demand.
The limited domesticproduction capability, plus increasingly high demand for healthcareservices and drugs, can explain why the Vietnamese drug market hasalways been very attractive.
The latest report of the BusinessMonitor Index, a market survey firm, showed that drug consumptionmaintained an impressive high growth rate of 16 percent last year.
However,with market value estimated at 3.3 billion USD last year, Vietnamesehave only spent 2 percent of GDP on medicine, a very modest figure.
Bythe end of 2013, every Vietnamese spent 35 USD a year on drugs onaverage, a very low level if compared with regional countries such asMalaysia, Thailand (70 USD per annum) or Singapore (150 USD).
Thefigures give investors more reason to hope that they will have greatopportunities to do business in Vietnam, as Vietnamese incomes andexpenditures are increasing rapidly.
GlobaData, a globalpharmaceutical market survey firm, in its report released in June 2014,also commented that the Vietnamese drug market was very promising.
The firm predicted that the Vietnamese pharmaceutical market value would reach 8 billion USD in the next six years.
TheGovernment, in its pharmaceutical industry development strategy by2020, stated that by that time, Vietnam-made products must satisfy 80percent of market demand.
If this happened, Vietnamesepharmaceutical companies would be able to get eight to 10 pieces of thecake, or they would pocket 6.4 billion USD.
Vietnamese players
Hau Giang Pharmacy, the Vietnamese biggest pharmaceutical firm inVietnam, last November completed the construction of a new factory whichwould help increase the output by twofold to 9 billion units per annum.
Meanwhile,Imexpharm, which is believed to have the most advanced productionlines, has also finished the construction of a factory specializing inmaking penicillin injections in Binh Duong province.
While Hau Giang Pharmacy is dominating the southern market, the northern market is being dominated by Traphaco.
Whilethe former focuses on making popular products antibiotics, analgesicsand respiratory drugs, the latter makes functional foods with naturalmaterials.
Planning to buy medical equipment companies in somekey provinces such as Thai Nguyen in the north, Dak Lak in the CentralHighlands and Quang Tri in the central region, Traphaco is making hecticpreparations to set up a large distribution network for its productsthroughout the country.-VNA
Accordingto the VietNamNet Bridge, in Vietnam, there are 178 pharmaceuticalmanufacturers, including 100 western medicine and 78 oriental medicineenterprises, about 300 oriental medicine manufacturers, and numerousdistributors of imported drugs.
Although Vietnam inheritedEastern traditional medicine from their ancestors, the country can nowproduce only 50 percent of domestic demand.
The limited domesticproduction capability, plus increasingly high demand for healthcareservices and drugs, can explain why the Vietnamese drug market hasalways been very attractive.
The latest report of the BusinessMonitor Index, a market survey firm, showed that drug consumptionmaintained an impressive high growth rate of 16 percent last year.
However,with market value estimated at 3.3 billion USD last year, Vietnamesehave only spent 2 percent of GDP on medicine, a very modest figure.
Bythe end of 2013, every Vietnamese spent 35 USD a year on drugs onaverage, a very low level if compared with regional countries such asMalaysia, Thailand (70 USD per annum) or Singapore (150 USD).
Thefigures give investors more reason to hope that they will have greatopportunities to do business in Vietnam, as Vietnamese incomes andexpenditures are increasing rapidly.
GlobaData, a globalpharmaceutical market survey firm, in its report released in June 2014,also commented that the Vietnamese drug market was very promising.
The firm predicted that the Vietnamese pharmaceutical market value would reach 8 billion USD in the next six years.
TheGovernment, in its pharmaceutical industry development strategy by2020, stated that by that time, Vietnam-made products must satisfy 80percent of market demand.
If this happened, Vietnamesepharmaceutical companies would be able to get eight to 10 pieces of thecake, or they would pocket 6.4 billion USD.
Vietnamese players
Hau Giang Pharmacy, the Vietnamese biggest pharmaceutical firm inVietnam, last November completed the construction of a new factory whichwould help increase the output by twofold to 9 billion units per annum.
Meanwhile,Imexpharm, which is believed to have the most advanced productionlines, has also finished the construction of a factory specializing inmaking penicillin injections in Binh Duong province.
While Hau Giang Pharmacy is dominating the southern market, the northern market is being dominated by Traphaco.
Whilethe former focuses on making popular products antibiotics, analgesicsand respiratory drugs, the latter makes functional foods with naturalmaterials.
Planning to buy medical equipment companies in somekey provinces such as Thai Nguyen in the north, Dak Lak in the CentralHighlands and Quang Tri in the central region, Traphaco is making hecticpreparations to set up a large distribution network for its productsthroughout the country.-VNA
