Vietnam Pharmaceutical Industry 2026: Market & Regulations

Vietnam’s pharmaceutical industry continues to grow in 2026, supported by rising healthcare demand, an ageing population and stronger investment in domestic production. The market was valued at around US$7 billion, with annual growth forecast at 10–15%.

For foreign pharmaceutical companies, entering the market requires more than assessing demand. Product registration, permitted business activities, distribution restrictions and access to hospital and retail channels all need to be considered from the outset.

This guide covers the key market trends, regulations and entry options shaping Vietnam’s pharmaceutical industry in 2026.

How Big Is Vietnam’s Pharmaceutical Market in 2026?

• Market size: Vietnam’s pharmaceutical market was valued at around US$7 billion in 2026, with annual growth forecast at 10–15%.
• Manufacturing base: The country has 245 pharmaceutical manufacturing facilities.
• Quality standards: 26 factories meet EU-GMP or equivalent standards, supporting more advanced local production.
• Domestic medicine share: Locally produced medicines account for around 60% of consumption by volume and 46% by value.
• Import dependence: Vietnam still relies on imported pharmaceutical ingredients, technologies and certain medicines.
• Growth areas: Specialist medicines, biologics, technology transfer and pharmaceutical ingredients remain important areas for further development.

Overall, the market is expanding while local production capacity continues to strengthen.

What Is Driving Demand and Industry Growth in Vietnam?

For pharmaceutical businesses, these shifts are changing both demand patterns and how products reach the market.

How Is Vietnam’s Pharmaceutical Supply and Retail Market Evolving?

Vietnam’s pharmaceutical market includes established domestic manufacturers alongside rapidly expanding pharmacy chains.

Major Pharmaceutical Manufacturers

Major Pharmacy Chains

Together, these manufacturers and retail networks show a market that is becoming more organised, with stronger local production and broader access through established pharmacy channels.

What Are the Key Pharmaceutical Regulations in Vietnam in 2026?

Vietnam’s pharmaceutical framework changed significantly following the amended Law on Pharmacy and Decree No. 163/2025/ND-CP, with further registration rules introduced in 2026.

• Product registration: Circular No. 32/2026/TT-BYT, effective 1 October 2026, now governs marketing authorisations for medicines and pharmaceutical ingredients and replaces Circular No. 12/2025/TT-BYT.
• Reference-based applications: Eligible applications can follow a statutory assessment period of up to nine months once a complete dossier has been received.
• Marketing authorisation renewals: Existing authorisations may remain usable while an eligible renewal application is being processed, subject to the applicable conditions.
• Price transparency: Manufacturers and importers must disclose anticipated wholesale prices for prescription medicines before first sale and report subsequent changes where required.
• E-commerce: Vietnam now permits certain pharmaceutical sales through approved e-commerce channels, while prescription medicines, specially controlled drugs and restricted retail medicines remain subject to tighter limits.

For businesses, these changes make product classification, licensing scope and registration planning important well before a medicine is introduced to the Vietnamese market.

What Can Foreign Pharmaceutical Companies Do in Vietnam?

Foreign-invested pharmaceutical companies can operate in Vietnam, but their activities depend on the type of establishment and licensed scope.

• Manufacture medicines: Foreign-invested manufacturers can produce, sell, deliver and transport medicines they manufacture within their permitted scope.
• Import medicines and pharmaceutical ingredients: Licensed importers can bring approved medicines, ingredients and medicinal materials into Vietnam.
• Supply licensed wholesalers: Imported medicines and materials may be supplied to licensed pharmaceutical wholesalers, rather than directly to retailers or end users.
• Support local production and technology transfer: Certain products and ingredients linked to processing or technology-transfer arrangements may be imported, repurchased or supplied where permitted.
• Transport through approved channels: Specified delivery and transport activities are allowed for medicines manufactured, imported or handled under approved arrangements.
• Distribution remains restricted: Foreign-invested companies do not have unrestricted rights to retail medicines or conduct wholesale distribution beyond what the law specifically allows.

For foreign pharmaceutical companies, the key is to define the business model early, as manufacturing, importing and distribution are treated differently under Vietnam’s pharmaceutical rules.

What Are the Main Market Entry Challenges and Options?

Foreign pharmaceutical companies entering Vietnam need to align regulatory requirements with the right route to market.

• Product registration and licensing: Medicines may require marketing authorisation and other approvals before commercial sale, so registration timelines should be built into the market-entry plan.
• Restricted distribution rights: Foreign-invested companies do not have unrestricted distribution rights and may need to work with a licensed Vietnamese distributor.
• Hospital and retail access: Local partners can help businesses navigate procurement requirements, pharmacy channels and established distribution networks.
• Advertising restrictions: Prescription medicines are subject to strict promotion rules, limiting how companies can market products directly to consumers.
• Joint ventures and partnerships: Working with a local company can provide established distribution, market knowledge and operating capability.
• M&A: Acquiring or investing in an existing pharmaceutical business can provide faster access to licences, facilities and local networks.
• Local manufacturing or importing: Depending on the product and strategy, businesses may establish manufacturing operations or use a permitted importing structure.

The right entry model depends on the product, intended activities and level of local control required.

How Ascentium Vietnam Can Help

Vietnam’s pharmaceutical sector is moving towards stronger local production, more organised retail networks and tighter regulatory oversight. For investors, the opportunity is not simply in market growth, but in identifying where their products, capabilities and operating model fit within this changing landscape.

At Ascentium Vietnam, we help businesses turn that market opportunity into a workable plan, from assessing entry structures and setting up the local entity to supporting tax, accounting, HR, payroll and ongoing compliance as operations develop.

With the right structure, regulatory pathway and local support in place, pharmaceutical companies can enter Vietnam with greater clarity and build for longer-term growth.

Frequently Asked Questions