Vietnam Pharmacy Retail Market, By Region, Competition, Forecast & Opportunities, 2020-2030F

The Vietnam Pharmacy Retail Market was valued at USD 9.87 Billion in 2024, and is expected to reach USD 14.19 Billion by 2030, rising at a CAGR of 6.30%. According to the Vietnam Population Forecast by the General Statistics Office (GSO), the population aged over 65 currently totals 7.6 million and is projected to account for 17.5 percent of the total population by 2049. This demographic shift is expected to drive increased demand for medications and healthcare products in Vietnam. Additionally, rising incomes and growing urbanization are anticipated to further support the expansion of the country's pharmacy market.

According to the latest data from the Ministry of Industry and Trade, total retail sales of goods and consumer services in December 2023 are estimated at USD22.51 million, marking a 2.6 percent increase from November 2023 and a notable 9.3 percent rise compared to December 2022. For the whole year of 2023, total retail sales of consumer goods and services at current prices are projected to reach USD247.84 million, reflecting a 9.6 percent increase from the previous year. Retail sales of goods alone were estimated at USD192.4 million, making up 78 percent of the total and showing an 8.6 percent rise from the previous year. Inflation has decreased from its peak of 4.9 percent to a current range of 3.4-3.6 percent. KBSV anticipates that these positive trends will bolster economic demand.

Key Market Drivers

Increasing Healthcare Awareness

Vietnam pharmacy retail market is significantly driven by the rising awareness about healthcare and wellness among its population. As the Vietnamese people become more informed about health issues, the demand for pharmaceutical products and services has grown. This heightened awareness is fueled by increased access to health information through various media channels, including the internet, social media, and educational campaigns. Health consciousness has shifted from merely addressing illnesses to preventing them through proactive measures and maintaining overall wellness. Improved healthcare education has led to a greater understanding of chronic diseases, preventive care, and the importance of early intervention.

Consequently, consumers are seeking out pharmacies for not only medications but also for health supplements, vitamins, and other wellness products. This trend is further supported by the government's efforts to promote health literacy and preventive care through public health campaigns and educational programs. At the 2024 annual general meeting of shareholders, Nguyen Bach Diep, Chairwoman of FPT Retail, unveiled plans to expand the Long Chau pharmacy chain by adding 400 new stores, increasing the total number to 1,900. Each new pharmacy will require an average investment of approximately USD31,500 and is projected to break even within three months. This expansion is part of a broader strategy to develop the medical ecosystem.

Diep aims to roll out the Long Chau Healthcare Platform strategy, which will focus on preventive medicine, diagnostics, testing, treatment, pharmacies, and home monitoring. The growing awareness also influences consumer behavior, as people are more inclined to purchase high-quality, branded medications and health products. This shift has resulted in an increase in both the frequency and volume of purchases at retail pharmacies. Additionally, the rise of health-conscious lifestyle choices, such as dietary supplements and fitness products, contributes to the expanding market for pharmacy retail.

Key Market Challenges

Regulatory and Compliance Issues

The Vietnamese pharmacy retail market faces significant challenges related to regulatory and compliance issues. The pharmaceutical industry in Vietnam is governed by a complex array of regulations, which are constantly evolving. Ensuring compliance with these regulations can be challenging for pharmacy retailers, particularly smaller businesses with limited resources. Regulatory requirements encompass various aspects, including drug registration, quality control, labeling, and advertising. Pharmacy retailers must navigate these regulations to avoid legal issues and ensure that their products meet safety and efficacy standards.

Non-compliance can lead to penalties, including fines and potential suspension of business operations, which can severely impact a company's reputation and financial stability. Additionally, the regulatory environment can be unpredictable, with frequent changes in policies and procedures. Keeping up-to-date with these changes requires constant monitoring and adaptation, which can be resource-intensive. The complexity of the regulatory framework can also create barriers for new entrants to the market, limiting competition and innovation. Another aspect of regulatory challenges is the need to adhere to international standards, especially for retailers dealing with imported pharmaceutical products. Compliance with both local and international regulations requires rigorous quality control processes and documentation, adding to the operational burden for pharmacy retailers.

Key Market Trends

Digital Transformation and E-Commerce Growth

The digital transformation trend is reshaping Vietnam pharmacy retail market. With increasing internet penetration and smartphone usage, consumers are turning to online platforms for purchasing pharmaceutical products and health services. E-commerce has become a significant channel for pharmacies, offering convenience and a wider range of products than traditional brick-and-mortar stores. This trend is driven by the growing preference for online shopping, particularly among younger, tech-savvy consumers who value the ease of ordering medications and health products from the comfort of their homes.

Digital platforms allow pharmacies to reach a broader audience and provide services such as online consultations, home delivery, and digital prescriptions. The integration of technology into pharmacy operations includes the use of mobile apps and websites for order placement, payment processing, and customer engagement. Many pharmacies are also adopting digital tools for inventory management, customer relationship management, and data analytics, which enhance operational efficiency and customer experience.

The rise of e-commerce in pharmacy retail is supported by a growing trend towards telemedicine and remote healthcare services. The COVID-19 pandemic accelerated this shift, as consumers sought safe alternatives to in-person visits. E-commerce platforms and digital health solutions are expected to continue evolving, offering innovative services such as virtual health consultations, personalized medicine, and health tracking apps. As digital infrastructure improves and consumer trust in online shopping grows, the role of e-commerce in the pharmacy sector is likely to expand further.

Key Market Players

• FPT Digital Retail Joint Stock Company
• Eco Pharmaceutical Joint Stock Company
• Pharmacity Pharmaceutical Joint Stock Company
• ABC Pharmacy
• DHG Pharmaceutical Joint-Stock Company
• Matsumoto Kiyoshi Vietnam Joint Stock Company
• Sanofi-Aventis Vietnam Company Limited
• OPC Pharmaceutical Joint Stock Company
• Imexpharm Pharmaceutical Joint Stock Company
• B.Braun Vietnam Company Limited

Report Scope:

In this report, the Vietnam Pharmacy Retail Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Vietnam Pharmacy Retail Market, By Market Structure:

• Unorganized
• Organized

Vietnam Pharmacy Retail Market, By Product Type:

• Over-the-Counter Products
• Prescribed Drugs
• Non-Pharmaceutical Products
• Medical Equipment

Vietnam Pharmacy Retail Market, By Therapeutic Area:

• Cardiovascular
• Pain Relief/Analgesics
• Vitamins/Minerals/Nutrients
• Anti-Infective
• Anti-Diabetic
• Others

Vietnam Pharmacy Retail Market, By Drug Type:

• Generic
• Patented

Vietnam Pharmacy Retail Market, By Pharmacy Location:

• Street/Mall Based
• Hospital Based

Vietnam Pharmacy Retail Market, By Region:

• Southern
• Northern
• Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Vietnam Pharmacy Retail Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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