Workers at DHG Pharmaceutical Company. The pharmaceutical industry is expected to recover and grow by 15 percent this year (Photo: taichingplus.vn)
HCM City (VNS/VNA) - The pharmaceutical industry grew by just 2.8 percentlast year, much lower than its average 11.8 percent growth in the last fiveyears.
It is expected to recover and grow by 15 percent this year, mainly due to arapidly ageing population and increasing incomes, analysts at SSI SecuritiesCorporation said.
According to a report by the company, social distancing and strict control athospitals last year meant people with minor ailments did not go for treatmentdue, resulting in lower sales of both prescription and non-prescription drugs.
The incidence of health checks was 10-15 percent down until the fourth quarter.
Then, in the final quarter, after the pandemic was controlled, people againbegan going to hospitals that the number visiting hospitals went up by 5 percentyear-on-year.
Last year there was a short supply of active pharmaceutical ingredients (API)from China and India due to social distancing and lockdowns and higher demandfor them globally, causing drug prices to rise.
India and China account for 55 percent of the global API supply and nearly 70 percentof Vietnam’s requirements.
The prices of most APIs increased by 5-8 percent and pharmaceutical companies’gross profit margin decreased by 1-3 percentage points in 2020 since they couldnot increase prices to compensate for this.
Construction of new pharmaceutical plants fell behind schedule.
According to the Ministry of Health, domestic drug production grew at 13.8 percentper year in 2015 - 19 backed by Government policies and construction of newplants.
SSI Research said however the industry was recovering.
M&A
Last year was notable for mergers and acquisitions in the industry. Accordingto SSI Research, the total value of M&A deals was 1.68 trillion VND (73million USD) and they involved a number of foreign investors.
German generic drugmaker Stada paid 400 billion VND to increase its stake inPymepharco JSC from 70 percent to 76 percent.
Japan’s Aska Pharmaceutical paid 350 billion VND to acquire a 25 percent stakein Ha Tay Pharmaceutical JS Company./.
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The Asian Development Bank (ADB) signed an eight million USD loan with Imexpharm Corporation to help the company sustain its production of generic medicines despite global supply disruptions caused by the COVID-19 pandemic.
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Vietnamese Ambassador to the US Nguyen Quoc Dung reviewed key milestones in the bilateral relationship, underscoring the essential and sustained contribution by businesses from both countries, from the time before the normalisation of bilateral ties in 1995 until today, when the two sides are comprehensive stategic partners of each other.
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This year’s event attracted more than 350 entries from cities and provinces across the country, reflecting growing interest in and commitment to the Fourth Industrial Revolution.
The new Government decree also simplifies loan procedures while expanding credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.
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The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
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A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
Workers at DHG Pharmaceutical Company. The pharmaceutical industry is expected to recover and grow by 15 percent this year (Photo: taichingplus.vn) 
