A pharmaceutical production line of Traphaco Joint Stock Company. The company tops the list of 10 most prestigious pharmaceutical companies in 2017 (Photo: baocongthuong.com.vn) Hanoi (VNA) - Vietnam’spharmaceutical market is estimated to record revenue of 5.2 billion USD in2017, a 10 percent increase from last year. The market is set for double digitgrowth within the next five years, according to Vietnam Report Company (VNR).
The country’s demand for drugs is expectedto rise due to increasing population and income. The average spending ofVietnamese on drugs rose from 9.85 USD in 2005 to 22.25 USD in 2010, double to 37.97USD in 2015 and 56 USD in 2017.
The average growth rate of spending on drugwas 14.6 percent in 2010-15 and is set to maintain a rate of at least 14 percentuntil 2025. Spending is forecast to double to 85 USD per person in 2020 and 163USD in 2025.
The VNR on December 25 launched the list ofthe 10 most prestigious pharmaceutical firms in Vietnam in 2017. Its survey ofthe top 10 companies showed that most local pharmaceutical companies have highhopes for higher development in 2018, with some 75 percent of firms expectingmore than 10 percent growth.
The market is considered promising toforeign investors and multinational groups.
The sector is predicted to see big changesin 2018 with foreign firms like Sanofi, Taisho and Abbott entering the market,pressuring local companies, according to the company.
More than 90 percent of the surveyedenterprises said the process for bidding for hospital dugs and dependence onimported materials were the biggest barriers for pharmaceutical companies. Thedependence has made the sector vulnerable to foreign exchange rate changes andhigh import costs that make Vietnam’s pharmaceutical products 20-25 percenthigher than in China and India.
The survey also revealed that research anddevelopment activities have been lacking due to a shortage of capital, humanresources and technologies, which are strengths of foreign firms.
However, cooperation with foreign companiesis expected to help local firms improve their products’ quality, thusincreasing their competitiveness.
More than 80 percent of the companies saidresearch for new products would be their top priory for 2018. Some 67 percentof the enterprises said they would improve through the retail system.
They also called for support from theGovernment and links among businesses for sustainable development.
Top 10 prestigious pharmaceutical companies in Vietnam 2017 are Traphaco JointStock Company, DHG Pharmaceutical Joint Stock Company, Pymepharco Joint StockCompany, Domesco Medical Import-Export Joint Stock Company, ImexpharmPharmaceutical Joint Stock Company, Dinh Dinh Pharmaceutical and MedicalEquipment Joint Stock Company, Ha Tay Pharmaceutical Joint Stock Company, OPCPharmaceutical Joint Stock Company, Mekiphar Chemical Pharmaceutical JointStock Company, Nam Ha Pharmaceutical Joint Stock Company. - VNA
VNA
