Vietnam's Pharmaceutical Industry 2025: M&A Surge and Technology Leap
Vietnam's Pharmaceutical Market is Booming
Vietnam's pharmaceutical market is undergoing a powerful transformation and impressive growth in 2025. With a market size projected to exceed USD 25 billion and a population of over 100 million people, Vietnam is becoming Southeast Asia's second-largest pharmaceutical market, trailing only Indonesia.
M&A Value Surges
According to BDA Partners' report, M&A deal value in the healthcare-pharmaceutical sector reached USD 4.8 billion in the first 8 months of 2025, up 21% year-on-year. Average deal size also increased significantly, demonstrating growing interest from strategic investors and private equity (PE) funds.
One of the standout transactions was Livzon's acquisition of 65% stake in Imexpharm for approximately USD 221 million. This deal not only brings pharmaceutical manufacturing capacity with EU-GMP certified facilities but also positions Vietnam as a regional pharmaceutical manufacturing hub, leveraging advantages from free trade agreements.
Sustained Growth at 10% Annual Rate
Vietnam's pharmaceutical market maintains a compound annual growth rate (CAGR) of approximately 10%, with two main distribution channels:
- Hospital Channel (ETC): Accounts for 70% market share with 12% annual growth
- Retail Channel (OTC): Represents 30% market share with 8% annual growth
Prescription drug sales reached USD 4.6 billion in 2023 and are projected to reach USD 9.1 billion by 2033, reflecting increasing demand for specialized medicines and chronic disease treatments.
Digital Transformation - New Growth Driver
E-Pharmacy Boom
Digital transformation is redefining Vietnam's pharmaceutical industry. E-pharmacies like Long Châu Pharmacy (under FPT Retail) are leading this revolution with:
- Extensive distribution network with deep local market understanding
- Advanced technology deployment to optimize customer experience
- Enhanced healthcare accessibility, especially in rural areas
AI & Smart Healthcare Solutions
In April 2025, GE HealthCare and FPT expanded their strategic partnership to promote AI-driven healthcare solutions. This long-term alliance will enhance product development and operational efficiency, including establishing an FPT Competency Center in Vietnam to support product strategy, innovation, and customer onboarding.
Exhibitions and Networking Opportunities
PHARMEDI 2025 - Vietnam's Largest Healthcare Event
The Pharmed & Healthcare Vietnam 2025 (PHARMEDI) exhibition will take place from September 24-27, 2025, at the Saigon Exhibition and Convention Center (SECC), Ho Chi Minh City. As Vietnam's premier healthcare and pharmaceutical trade event, it offers:
- Cutting-Edge Innovations: Discover latest medical technologies, pharmaceutical developments, and healthcare solutions
- International Collaboration: Connect with global experts, scientists, and industry leaders
- B2B Networking: Explore expansion opportunities with key stakeholders in Vietnam's healthcare sector
Vietnam Medipharm Expo 2025
Scheduled from July 31 to August 2, 2025, the event will gather 450 enterprises from 23 countries across 500 booths, expecting 12,000 healthcare professionals, distributors, and manufacturers. The expo will showcase:
- Home healthcare devices such as blood pressure monitors and smart wearable technology
- Advanced medical technologies, including AI-powered solutions and diagnostic imaging systems
- National pavilions from India, Korea, and Malaysia
Challenges and Opportunities
Challenges to Overcome
Despite significant potential, Vietnam's pharmaceutical industry still faces several challenges:
- Inconsistent legal framework
- Complex licensing procedures
- Valuation standardization
- International accreditation requirements
- Counterfeit drugs and quality control issues
Golden Investment Opportunities
The Vietnamese government actively encourages private sector participation in healthcare through:
- Allowing public hospitals to lease and purchase medical equipment from the private sector
- Public-Private Partnership (PPP) investment in healthcare
- Tax incentives and business support in industrial parks
- International cooperation and technology transfer
With FDI reaching USD 13.82 billion in early 2025, up nearly 40% year-on-year, a significant portion is flowing into healthcare infrastructure and digital technology.
Future Vision
Vietnam's pharmaceutical industry is at a golden moment for sustainable development. With a population exceeding 100 million, per capita GDP projected to reach USD 4,900 in 2025, and an aging population, demand for healthcare services and products has never been greater.
Leading pharmaceutical companies such as DHG Pharma, Traphaco, Imexpharm, Sanofi Vietnam, and Bayer Vietnam are leading the industry not only through financial performance but also through strategic vision, R&D investment, global partnerships, and commitment to quality and sustainability.
The market is expected to reach USD 10 billion by 2026, cementing Vietnam's position as Southeast Asia's second-largest pharmaceutical market. This represents not only an opportunity for investors but also an important step forward in improving healthcare quality for the Vietnamese people.
