Only 10% of Vietnam's Pharmaceutical Companies Meet International Standards, with Imexpharm Leading the Pack

Through the implementation of the high-tech drug production strategy, Vietnamese companies are committed to ensuring a stable drug supply in the domestic market and actively preparing for integration into the global supply chain system.

According to the Vietnam Pharmaceutical Administration, the total value of Vietnam's pharmaceutical market is about 8 billion US dollars in 2023 and is expected to grow strongly to 20 billion US dollars by 2045, making Vietnam one of the fastest growing countries in the global pharmaceutical market. However, the market segment currently dominated by leading players is still dominated by foreign players.

In order to realize the national strategy to develop Vietnam's pharmaceutical industry by 2030 and the long-term vision by 2045, Vietnam aims to meet 80% of the domestic demand for pharmaceuticals and occupy 70% of the market value. This ambitious goal has sparked a competition among pharmaceutical companies for investment in order to gain a competitive advantage in the future.

However, as of October 2024, according to the Vietnam Medicines Administration, there are only about 288 pharmaceutical manufacturing facilities in Vietnam that comply with GMP principles, of which only 31 comply with EU-GMP or equivalent standards (such as Japan-GMP), accounting for more than 10%, while most comply with WHO-GMP standards.

In this market context, well-known brands such as Imexpharm, DHG Pharma and StellaPharm continue to feature in the top 10 by revenue. It is worth noting that Imexpharm already has the ability to produce high-quality drugs that meet EU GMP standards, setting a new development trend for the Vietnamese pharmaceutical market.

The pharmaceutical industry is seen as a key sector that needs to pool resources and growth drivers from various companies. It aims to position Vietnam as a high-value pharmaceutical production hub in the region by 2030, and expects the export value of domestically produced pharmaceuticals to reach about $1 billion.

Imexpharm Pharmaceutical JSC recently increased its licensed capital to VND 1.54 trillion (~ US $60.68 million), making it one of the companies with the highest licensed capital in the domestic pharmaceutical industry. This positive sign shows that in a fragmented industry context where many small companies face limited financial capacity, a strong financial base allows Imexpharm to make significant investments in research and development, high-tech drug production and drug innovation, thus ensuring a stable domestic drug supply.

Tran Thi Dao, Managing Director of Imexpharm, said: "The strong financial foundation allows us to invest in technology and adapt to the dramatic changes in the structure of the pharmaceutical market in the future. In addition, we are ready for digital and green transformation to compete in the international market."

Imexpharm has been a pioneer in technology investment in Vietnam over the past decades. The company currently has the largest number of EU-GMP compliant high-tech pharmaceutical production lines in Vietnam, with research and development investment accounting for 5% of revenue and 11 production lines in three plant clusters. This advantage gives Imexpharm a dominant position in the field of antibiotics and cough medicine, even surpassing foreign players.

Imexpharm's success in both the ETC (ethical/prescription) and OTC (over-the-counter) channels reflects the positive impact this has had on domestic pharmaceutical companies in the face of increasing social demand and heightened risks of epidemics and supply chain disruptions.

According to Imexpharm's most recent financial report, the company's revenue in the first nine months of this year increased 12 percent from the same period last year to 155.3 million VNDK (about $61.2 million), fulfilling 66 percent of its full-year revenue target. September's pre-tax profit was up a whopping 42% on the same month last year and 43% compared with August. In 2024, Imexpharm aims to achieve net revenue of 2.365 billion VND (about $103.83 million) and pre-tax profit of 423 million VND (about $16.67 million), up 19% and 12% respectively from the previous year.

Nguyen An Duy, deputy general manager of Imexpharm Finance, said: "With the current growth momentum in the first nine months, the company is approaching the target set at the General meeting and is on track to record profits for the third consecutive year."

In the first nine months of 2024, the company launched 16 new products and manages 99 ongoing research and development projects. In addition to traditional dosage forms, Imexpharm is able to develop innovative dosage forms and new technologies for drug production. By providing quality and affordable specialty medicines, Imexpharm has replaced imported medicines in many hospitals, increasing its competitiveness in the domestic market and creating barriers for foreign pharmaceutical companies.

Thanks to full preparation, Imexpharm's products have become more and more popular in the market, contributing to the company's operating results. In addition to three EU GMP compliant plant clusters, Imexpharm recently announced plans for the integrated Cat Khanh pharmaceutical plant project in Dong Thap Province.

Experts believe that the growth of large pharmaceutical companies with potential such as Imexpharm will enhance Vietnam's production and supply capacity, while enhancing its pharmaceutical export potential, laying a solid foundation for Vietnam to become a regional pharmaceutical supply center.