Announcing the top 10 prestigious companies in the pharmaceutical and medical equipment industry

On November 22, Vietnam Report Joint Stock Company announced the top 10 prestigious companies in the pharmaceutical, medical equipment and healthcare industry in 2024; at the same time, it is expected to hold a ceremony to honor typical enterprises in this industry in January 2025 in Hanoi.

The assessment report is built on scientific and objective principles, based on 3 main criteria: financial capacity shown in the most recent financial report, media reputation assessed by the Media Coding method - encoding articles about the company on influential media channels and survey results of related subjects conducted in October-November 2024.

Specifically, the list of top 10 prestigious pharmaceutical manufacturing companies in 2024 includes: Hau Giang Pharmaceutical Joint Stock Company, Traphaco Joint Stock Company, Imexpharm Pharmaceutical Joint Stock Company, Binh Dinh Pharmaceutical and Medical Equipment Joint Stock Company, Stellapharm Joint Venture Company Limited, Domesco Medical Import-Export Joint Stock Company, TV.Pharm Pharmaceutical Joint Stock Company, OPC Pharmaceutical Joint Stock Company, Ha Tay Pharmaceutical Joint Stock Company and Rohto-Mentholatum Company Limited (Vietnam).

In addition, there are also the top 10 prestigious pharmaceutical distribution companies in 2024, including Vietnam Vaccine Joint Stock Company, Vietnam Pharmaceutical Corporation - JSC, Central Pharmaceutical Joint Stock Company CPC1, Khuong Duy Pharmaceutical Joint Stock Company, FPT Long Chau Pharmaceutical Joint Stock Company, Central Pharmaceutical Materials Joint Stock Company 2, Hanoi Pharmaceutical and Medical Equipment Joint Stock Company, Viet Ha Pharmaceutical Joint Stock Company, Saigon Pharmaceutical Company Limited, Thai Minh Pharmaceutical Joint Stock Company...

Assessing the market situation and long-term vision of the pharmaceutical industry, General Director of Vietnam Report Vu Dang Vinh said that playing the role of a bridge to ensure timely and safe access to medical products, bringing medical advances and advanced technology to the community, the pharmaceutical and medical equipment sector, and healthcare is a key factor for the comprehensive development of the country, not only promoting the economy but also caring for and protecting the core assets of society - human health. After strong growth in 2023, the industry "slowed down" during the first 10 months of 2024; especially in the first and second quarters.

According to the survey results of Vietnam Report, the rate of enterprises witnessing a business period falling behind the high base level of the previous year recorded an increase. The revenue picture did not fluctuate too much compared to the same period in 2023, but the rate of enterprises with declining profits increased significantly from 21.1% to 37.5%.

Fluctuations in input material prices, decline in purchasing power due to the trend of tightening people's spending, slow circulation of some anti-epidemic support products and increasingly fierce competition have made the market in general less favorable in the first months of this year.

Despite still facing many significant challenges, the final months of 2024 are expected to witness a more positive picture for businesses in this industry.

Vietnam's economy is gradually moving towards recovery with clear improvements in many indicators, which will be a solid foundation to support the industry's growth momentum.

In addition, according to business leaders, the fourth quarter is often the quarter with the most vibrant business activities of the year, especially in the healthcare sector, the demand for products often increases due to the changing weather and some diseases often arise during this period such as dengue fever, viruses, flu...

Optimism is also maintained in the perspective of businesses about the prospects for 2025. Vietnam Report's survey results show that 66.6% of businesses have confidence in the development of the market, only 13.4% predict that they will face more challenges, while 20.0% hold the view that the market will remain stable, without many fluctuations compared to 2024.

The hospital drug distribution channel, which dominates the industry's revenue, is expected to continue to maintain and witness growth thanks to the universal health insurance policy and more relaxed and open hospital drug bidding regulations, along with the increased demand for specialized pharmaceutical products, especially rare drugs, biological drugs and drugs for treating serious diseases.

Meanwhile, the pharmacy distribution channel, although its revenue growth has not been impressive in the past 10 months, is expected by most businesses to have more positive changes in 2025.

In the long term, Mr. Vu Dang Vinh commented that the pharmaceutical and medical equipment and healthcare market is assessed to have high growth potential and large room for development. Vietnam is among the countries with the fastest pharmaceutical growth rate in the world, with a compound annual growth rate (CAGR) expected to reach 6-8% in the period 2023-2028 (according to IQVIA).

In addition, according to the forecast of the statistical organization Statista, the revenue of the Vietnamese medical equipment market also recorded stable growth over the years, from 922 million USD in 2016 to 1.6 billion USD in 2024 and is expected to reach 2.5 billion USD in 2029.

In general, Vietnam's pharmaceutical, medical equipment and healthcare industry is assessed to have strong resilience, despite potential risk factors in the market.

Strong drivers for Vietnam’s healthcare market include supportive government policies and amendments to the Pharmacy Law that will create a clear legal environment, support the sustainable development of the industry and guide the next stage of business growth; increasing demand for pharmaceuticals and healthcare as Vietnam’s population ages, with the proportion of people aged 60 and over increasing from 11.9% in 2019 to 13.9% in 2023 and the prevalence of non-communicable diseases such as cardiovascular disease, Alzheimer’s, lung cancer and diabetes, etc. becoming increasingly common.

In addition, Vietnamese consumers are increasingly health-conscious and proactive in disease prevention while disposable income increases, leading to improved spending on pharmaceuticals and healthcare equipment.

According to Fitch Solutions, per capita spending on pharmaceuticals is forecast to increase from VND1.46 million in 2021 to VND2.12 million in 2026, with a CAGR of 7.8%, equivalent to 5% of average annual income. Finally, globalization and international integration create opportunities to expand distribution networks, enhance brand coverage, promote cooperation, and create conditions for businesses to access deeper into the global value chain, Mr. Vinh emphasized.