Report Overview

Increasing healthcare expenditures and rising prevalence of chronic diseases are expected to boost the growth of Vietnam Pharmacy Retail Market during the forecast period between 2024 and 2030.

Vietnam Pharmacy Retail Market - Industry Trends & Forecast Report, 2030

The Vietnam Pharmacy Retail Market size was estimated to be worth USD 2.54 billion in 2023. During the forecast period between 2024 and 2030, the Vietnam Pharmacy Retail Market size is projected to grow at a CAGR of 4.87%, reaching a value of USD 3.78 billion by 2030.

By volume, the Vietnam Pharmacy Retail Market size was estimated at 60.8 thousand units in 2023. During the forecast period between 2024 and 2030, the Vietnam Pharmacy Retail Market size is expected to expand at a CAGR of 4.65%, reaching a volume of 74.1 thousand units by 2030.

Major growth factors for the Vietnam Pharmacy Retail Market include the rising prevalence of chronic diseases, increasing healthcare expenditure, and the expanding e-commerce sector in the country.

Pharmacy Retail – Overview

Pharmacy retail refers to the sector dedicated to the retail sale of pharmaceutical and healthcare products directly to consumers. The market encompasses a wide range of products, including prescription and over the counter (OTC) medications, health supplements, personal care items, and medical devices. Pharmacy retail outlets may include standalone pharmacies, those located within hospitals or healthcare centers, and those situated in high-traffic areas such as shopping malls and airports.

Vietnam Pharmacy Retail Market

Growth Drivers

Rising Healthcare Expenditure

The rising healthcare expenditure, particularly due to the increasing prevalence of chronic diseases and the geriatric population, is driving the growth of the Vietnam Pharmacy Retail Market. In addition, technological advancements in the healthcare and medical sectors are further influencing the cost of healthcare in Vietnam. As a result, the demand for prescription and over-the-counter medications is rising at a high rate. Furthermore, the expansion in telemedicine and remote consultation services is anticipated to provide lucrative growth opportunities to the Vietnam Pharmacy Retail Market during the forecast period.

Challenges

Rising Operational Costs

Increasing operating expenses are putting pressure on the growth of Vietnam Pharmacy Retail Market. Retail pharmacies are struggling financially due to rising labor costs, rent, and adhering to strict healthcare laws. Pharmaceutical product prices are frequently increased due to these operational difficulties, which influence customer choice. Profit margins are also under pressure from the market's escalating competitiveness. Retail pharmacies must manage these rising operating expenses despite the growing demand for healthcare goods and services, which limits their capacity to provide competitive pricing and may impede market expansion.

Vietnam Pharmacy Retail Market

Segmental Coverage

Vietnam Pharmacy Retail Market – By Type

Based on type, the Vietnam Pharmacy Retail Market is segmented into online and offline. The offline segment holds a larger share of the Vietnam Pharmacy Retail Market. The high number of drug stores in the country and easy accessibility to drugs in medical stores. All the hospitals and other healthcare centers, such as clinics, often have medical stores, which further drives the growth of the offline segment. However, the online segment is anticipated to register the highest growth rate during the forecast period. Online drug stores offer the ease of ordering medications and healthcare products from their smartphones through websites and apps and have them home delivered, which drives its market growth.

Vietnam Pharmacy Retail Market – By Drug Type

Based on drug type, the Vietnam Pharmacy Retail Market is segmented into generic, over the counter (OTC), and patented. The generic segment accounts for the highest market share as they are cheaper alternatives to branded drugs. Typically, generic name medications are 80% to 85% less expensive than branded medications. This is so because clinical trials and research for generic medications do not need to be repeated. The branded, non-generic medication has to undergo necessary testing to demonstrate its efficacy and security. Generic medications are becoming more popular in Vietnam since they are less expensive while maintaining the same level of quality.

Vietnam Pharmacy Retail Market – By End User

Based on end users, the Vietnam Pharmacy Retail Market is segmented into equipment retail, drug retail, health products retail, chemical medicine retail, medicinal materials retail, proprietary Chinese medicine retail, and others. The drug retail segment dominates the Vietnam Pharmacy Retail Market. Retailers may sell it to a hospital, dispensary, school, clinic, or research facility.

Competitive Landscape

Major players operating in the Vietnam Pharmacy Retail Market include Long Chau, Pharmacity, An Khang, MEDiCARE, Phano Pharmacy, Trung Son, VinFa, Eco Pharmacy, My Chau, and SK Plus Pharmacy.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Online

• Offline

By Drug Type

• Generic

• Over the Counter (OTC)

• Patented

By End User

• Equipment Retail

• Drug Retail

• Health Products Retail

• Chemical Medicine Retail

• Medicinal Materials Retail

• Proprietary Chinese Medicine Retail

• Others