The magnetic appeal of the $10 billion market
For many years, the Vietnamese government has identified the development of the domestic pharmaceutical industry as a key strategy to meet local market demands and promote exports. Today, Vietnam is emerging as an attractive destination for foreign investors in the pharmaceutical sector. Leading domestic pharmaceutical companies, such as DHG Pharma, Domesco, Traphaco, Imexpharm, and Pymepharco, all boast strategic foreign shareholders.
Overview of the IMP4 High-Tech Plant in Binh Duong
With rapid growth in domestic pharmaceutical production, Vietnam shows significant potential for export, especially to major markets like Cambodia, Laos, Myanmar, and other ASEAN countries. Experts from KPMG suggest that implementing a well-established legal framework and offering incentives for businesses could attract investment and encourage the development of the innovative drug industry. By driving growth through modern production facilities, KPMG projects a breakthrough for the industry as companies invest in advanced infrastructure.
Singapore serves as an exemplary model, transforming itself into a pharmaceutical hub in just two decades. The first phase of its strategy aimed to double the annual output of the Biomedical Sciences (BMS) sector to $7 billion by 2025. Over the years, Singapore has become a center for pharmaceutical research and manufacturing in the region, growing its pharmaceutical output from $2.8 billion in 2000 to $15.7 billion in 2018, with a compound annual growth rate of 10%.
EU-GMP standards and the export ambition
Vietnam could draw valuable lessons from Singapore's success in developing its pharmaceutical sector and integrating into the global supply chain. By creating favorable conditions for enterprises, particularly those investing seriously in quality, technology, production lines, and R&D, and strengthening efforts to penetrate new markets, Vietnam can position itself as a competitive player in the global market.
In mid-October this year, Imexpharm boldly ventured into the international stage by participating in the prestigious CPhI event in Barcelona, Spain. This global event connects leading pharmaceutical manufacturers worldwide to exchange innovations, showcase new products, seek partnerships, and integrate into the global supply chain. At CPhI, Imexpharm seized the opportunity to present its products, explore potential partnerships, and receive initial recognition from international stakeholders.
Imexpharm’s journey to global reach is a long one, beginning in the early 1980s with the production of Amoxicillin and Paracetamol-based products. The company later gained prominence by becoming a licensed production partner for leading global pharmaceutical corporations such as Sandoz, DP Pharma, Galien, Pharmacience Canada, and Sanofi-Aventis.
Today, Imexpharm operates 4 production clusters, including 03 EU-GMP-certified factory clusters with 11 EU-GMP production lines, making it one of Vietnam’s largest EU-GMP-certified pharmaceutical manufacturers. The company has also secured 12 Marketing Authorizations in Europe for 7 EU-GMP-certified products authorized for distribution in Europe.
EU-GMP technicians at work at Imexpharm's factory
People's Doctor, Pharmacist Tran Thi Dao, General Director of Imexpharm, remains deeply concerned about the challenges ahead as many domestic pharmaceutical companies generate limited added value, allowing imported medicines to dominate the market. This leaves Vietnamese patients at a disadvantage, as they have less access to new drugs compared to neighboring countries. According to the Ministry of Health, only 9% of new drugs released globally from 2012 to 2021 are available in Vietnam. Expanding production capacity to meet international standards and increasing capabilities in innovative drug manufacturing will enhance the competitiveness of domestic pharmaceuticals against imports. This, in turn, will create better access for the Vietnamese population to high-quality medicines at affordable costs, fostering a self-reliant and sustainable healthcare system.
Ms. Dao affirmed that Imexpharm is committed to enhancing product quality while ensuring affordability for patients. The company’s dedication to maintaining internationally certified production systems has earned the trust of hospitals, doctors, and patients over the years. Imexpharm continuously invests in EU-GMP and other advanced international standards, reinforcing its R&D activities. With strong support from SK Group, Imexpharm plans to expand collaborations with international partners, diversify its product portfolio, and introduce world-class Vietnamese medicines that offer high treatment efficacy at competitive prices.
Inspecting finished products: a key step in quality control
"In terms of expansion, we are consistently investing and implementing initiatives to improve the productivity of our existing production lines and facilities. Additionally, we are conducting feasibility studies for new factory and production line projects to better meet domestic and international demand. Imexpharm will share updates with media outlets, readers, investors, and partners at the appropriate time," shared General Director Tran Thi Dao.