Vietnam's drug imports rise 24% to $3.15 bln in 9 months

Vietnam’s pharmaceutical import reached nearly $3.15 billion in the first nine months of 2024, up 24.2% year-on -year, according to the General Department of Vietnam Customs.

Statistics from the department (GDVC) show that the drug import in August was $350 million, down 10.9% month-on-month but up 18.7% year-on-year. September import rose to $374 million.

The main medicine suppliers to Vietnam were France, the U.S., Germany, India, and Italy. Of these, France was the largest supplier with $366 million, up 22% year-on-year, accounting for 13.3% of Vietnam’s drug imports.

The U.S. came second with $295 million, up 17.7% and making up 10.7%, followed by Germany with corresponding figures of over $242 million, up 19.2% and 8.8%; and India $221 million, up 36.4% and 8%. Imports from Italy rose 43% to $190 million, accounting for 6.9%.

In general, Vietnam’s drug imports from most markets in the first nine months saw an increase compared to the same period in 2023.

At current pace, the import value by end-October is expected to exceed last year’s total. This year’s total drug import is estimated at over $4 billion.

Domestic market expansion

Meanwhile, the size of the domestic pharmaceutical market has been expanding continuously in recent years, from only $3.3 billion in 2015 to $6.9 billion in 2021, $7.3 billion in 2022, and $7.7 billion last year, according to the Drug Administration of Vietnam.

The sector’s primary growth driver has been higher per capita spending on medicines, thanks to improved incomes and growing health awareness among the population.

Despite the rapid growth, however, domestic drug production meets only about 60% of demand. In 2018, Vietnam spent nearly $2.8 billion on medicine imports, which surged to nearly $3.54 billion in 2022. Last year, the import value decreased by 2.9% to $3.44 billion, according to GDVC.

The country has over 62,000 drug retailers, more than 5,000 drug wholesalers, 238 WHO-GMP certified pharmaceutical manufacturing plants, and 17 EU-GMP certified manufacturing facilities.