Vietnam's top pharma firms report increased profits

Major Vietnamese drugmakers, including DHG Pharma, Traphaco, and Imexpharm, posted profit gains in Q2 and H1/2025 from a year earlier.

DHG Pharmaceutical Joint Stock Company (DHG Pharma) (HoSE: DHG) recorded net revenue of over VND1.18 trillion ($44.99 million) in Q2, up 7% from a year earlier, while pre-tax profit rose 28% to more than VND272 billion ($10.37 million).

The strong performance was mainly driven by a product mix shift toward higher value-added offerings. In addition, increased production and effective cost control contributed to improved business efficiency.

In H1, DHG posted net revenue of nearly VND2.38 trillion ($90.74 million), roughly flat from a year earlier. Pre-tax profit rose 22.2% to almost VND566 billion ($21.58 million). By end-June, the company had achieved nearly 46% of its full-year revenue target and 60% of its profit goal.

For Imexpharm (HoSE: IMP), Q2 net revenue rose 22% year-on-year to VND633 billion ($24.13 million). Post-tax profit reached nearly VND90 billion ($3.43 million), up 37% from a year earlier. This marked its highest-ever Q2 profit.

In H1, IMP generated over VND1.2 trillion ($45.75 million) in revenue, up 22% year-on-year, and net profit of VND165 billion ($6.29 million), up 29%.

At its April AGM, the company set a full-year revenue target of nearly VND3 trillion ($114.37 million) and a pre-tax profit goal of VND494 billion ($18.83 million). It has achieved 46.3% of the revenue target and nearly 43% of the profit plan.

Traphaco (HoSE: TRA) reported Q2 revenue of VND705.2 billion ($26.89 million), up 13.7% from a year earlier. Net profit rose 3.4% to VND74.8 billion ($2.85 million).

Its H1 net profit stood at VND122.5 billion ($4.67 million), equivalent to nearly 46% of its full-year profit target.

On the other hand, some drugmakers saw profits decline in Q2. Agimexpharm Pharmaceutical JSC (UPCoM: AGP) posted net revenue of nearly VND207 billion ($7.89 million), up nearly 9% year-on-year, while net profit edged down 1.87% to VND11.71 billion ($446,324).

The sharp decline in post-tax profit was mainly attributed to a sudden spike in financial expenses.

Vietnam Pharmaceutical Corporation - JSC or Vinapharm (UPCoM: DVN) said stock price volatility among its investee firms drove up financial provisioning, reversing the trend seen a year earlier when it was able to unwind provisions. Earnings from associated companies also fell, further dragging down overall profit.

Vinapharm reported an 8.8% drop in revenue to VND1.4 trillion ($53.36 million) in Q2. Net profit also plunged 42% to VND150 billion ($5.71 million).

Other pharmaceutical firms also posted weaker earnings. Pharmedic (HNX: PMC) saw Q2 net profit fall 8% to VND22.4 billion ($853,837), while Ladophar (HNX: LDP) reported a 3% decline to just over VND1.2 billion ($45,741).

Bright outlook

Vietnam’s pharmaceutical market has grown from $2.7 billion in 2015 to an estimated $7 billion in 2025, and is projected to reach $10 billion in 2026.

The country currently hosts over 238 drug manufacturing plants meeting WHO-GMP (good manufacturing practice) standards, 17 EU-GMP-certified facilities, more than 5,000 wholesale outlets, and over 62,000 retail drugstores.

Experts say Vietnam’s over 100 million population and rapidly rising healthcare spending - which has surged 8.7 times over the past 30 years - have turned the country into an increasingly attractive destination for global pharmaceutical companies.

The $10 billion market projection for 2026 offers significant opportunities for international investors and drugmakers looking to enter or expand in Vietnam.

Under its national strategy for pharmaceutical sector development to 2030 with a vision to 2045, the country aims to elevate its drug industry to be on par with advanced peers in the region, while ensuring affordable access to medicines for its population.

The strategy focuses on enhancing domestic research capabilities and leveraging available technologies to produce original brand-name drugs and develop advanced pharmaceutical formulations.

At the same time, Vietnam is seeking to become a regional hub for contract manufacturing and technology transfer of original brand-name drugs within ASEAN, with the goal of advancing its domestic pharmaceutical industry to Level 4 under the World Health Organization’s classification system.

A report by An Binh Securities JSC (ABS), citing a 2023 study by consultancy firm Roland Berger, showed that 78% of respondents were willing to spend more on healthcare products and services - highlighting a growing consumption trend in the sector.

Another key driver is Vietnam’s rapidly aging population. Of the country’s over 100 million people, 13.9% were aged 60 or older in 2023. That share is projected to surpass 25% by 2050.

By 2036, the country is expected to shift from an "aging" to an "aged" society. Older individuals tend to have higher demand for pharmaceuticals and healthcare services due to age-related health issues.

Government policies are also supporting domestic pharmaceutical production, aiming to reduce reliance on imports and boost investment in research and development.