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Vietnam’s pharma market in Vietnam is set to increase by $5 billion over the next six years.
Vietnam’s pharma market in Vietnam is set to increase by $5 billion over the next six years, reaching a net worth of $8 billion by 2020 and representing a Compound Annual Growth Rate (CAGR) of 15.4%, says research firm GlobalData.
The company’s report states that the scarcity of low-priced generic drugs, combined with a belief among Vietnamese doctors that patent-protected branded drugs are more effective, means that foreign pharmaceutical companies dominate the market and are able to maintain premium revenue.
This is despite the fact that Vietnam is one of the fastest growing economies in the Southeast Asia region, with its GDP having increased significantly in value from $101.6 billion in 2008 to an estimated $170.6 billion in 2013.
The Drug Administration of Vietnam issues a new drug registration within 180 days of an application being submitted. This makes the process much quicker than in the US and UK, although it is in line with other countries in Southeast Asia.
However, there are some obstacles that pharmaceutical manufacturers must face when launching new products into Vietnam’s pharmaceutical marketplace.
“While the time taken to evaluate new and generic drug approvals is shorter than in developed countries, the application submission procedure is rigoros. Extra documentation is required, as is the mandatory submission of certain data in Vietnamese. This makes it more difficult for new products to enter this arena and will subsequently hinder any further market growth over the forecast period,” said Joshua Owide, GlobalData’s Director of Healthcare Industry Dynamics.
GlobalData’s Vietnam report is available to buy here.