Vietnam’s $7 billion pharmaceutical market targets 80% domestic supply by 2030

Domestic output leads by volume, trails by value

Vietnam’s pharmaceutical market has reached about $7 billion and is forecast to expand by 10-15% annually, Health Minister Đào Hồng Lan said at an August 7 ceremony marking the 30th anniversary of the Drug Administration of Vietnam. The country has 245 pharmaceutical manufacturing facilities, including 26 plants certified to EU-GMP or equivalent standards, according to Soha.

Locally manufactured medicines now account for approximately 60% of the drugs used in Vietnam by volume, but only 46% of total spending. The gap indicates that domestic producers have built substantial capacity in widely used products while higher-value parts of the market remain more exposed to external suppliers. Soha reported that some Vietnamese companies have adopted technology for specialized and high-technology medicines and have begun supplying markets with stringent requirements.

2030 plan raises targets for medicines, APIs and vaccines

By 2030, the industry aims to provide 100% of required medicines proactively and on time for disease prevention and treatment, Drug Administration director Vũ Tuấn Cường said. Domestic products are expected to cover around 80% of medicine demand and 70% of market value. Vietnam also wants local production to meet 20% of its demand for active pharmaceutical ingredients, addressing one of the sector’s clearest supply vulnerabilities.

Vaccine policy forms another part of the self-reliance program. Vietnam is targeting domestic production sufficient to cover 100% of vaccine demand under its expanded immunization program and 30% of demand in the commercial vaccination segment. The industry also plans to receive technology transfers, or combine contract manufacturing with technology transfer, for at least 100 originator drugs, vaccines and biological products. These include biosimilars and medicines not currently manufactured in the country.

Imported inputs remain a constraint

Despite the growth of finished-dose manufacturing, the Health Ministry says domestic production still depends significantly on imported materials and technology. Research and development capabilities for new drugs and pharmaceutical inputs also remain limited. These constraints will be central for producers, technology owners and API suppliers assessing Vietnam’s expansion plans: higher local shares in value cannot be achieved solely by adding capacity for established generic products.

Quality control is being expanded alongside production. Vietnam’s testing system samples about 30,000-40,000 medicines from the market each year. Vietbao reported that 943 batches of vaccines and medical biological products were reviewed before release in 2025, while Soha said around 1,000 domestically produced and imported vaccine batches are checked before use annually. The rate of substandard medicines remains below 1%, and counterfeit drugs below 0.1%; the publications cited a World Health Organization assessment that these levels are lower than regional and global averages. Vietbao also reported that patented drug prices in Vietnam are among the lowest in ASEAN, while generic prices are 1.5-2 times lower than the regional average. The government’s next steps include tighter lifecycle supervision, stronger post-market checks, digital traceability and closer coordination against counterfeit and poor-quality products.