Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Adult mouthcare; Allergy care; Analgesics; Calming and sleeping products;
Child-specific OTC healthcare; Cough; cold and allergy (hay fever) remedies;
Digestive remedies; Ear care; Emergency contraception; Eye care; Medicated
skin care; NRT Smoking cessation aids; OTC obesity; OTC statins; Vitamins and
dietary supplements; Wound treatments
Executive summary
OTC healthcare to continue to grow dramatically thanks to growing economy and habit of self-medication
Bright expectations for Vietnam' s growing GDP in the coming years are spurring
all industries, especially pharmaceuticals, to develop strongly. Thus, OTC
healthcare continues to be a very profitable area for local and foreign
pharmaceutical companies to compete for market shares. More and more consumers
with increasingly high disposal incomes are spending much more on their
wellbeing.
Another reason why OTC healthcare has been developing dramatically in Vietnam
is the consumers' habit of self-medication. The habit originates from the
strong tradition of self-medication using traditional medicines from healers,
or from plants grown at home. Consumers looking for direct treatment from
pharmacies always bear in mind the traditional treatments.
Vitamins and dietary supplements the most valuable, medicated skin care growing fast
Vitamins and dietary supplements dominates Vietnam' s OTC healthcare market
thanks to many factors. A growing economy has encouraged Vietnamese consumers
to use their incomes on healthcare and beauty. Consumers in Vietnam believe
that vitamins and dietary supplements can enhance their wellbeing, for
example, improve the immune system and to better cope with stress, a malady of
modern lifestyle. Effective and intensive advertising campaigns, carried out
by the foreign companies, have pushed medicated skin care to grow strongly and
rapidly.
Drug prices still controlled by the state and still a sensitive issue
Increasing drug prices in Vietnam prompted Vietnam' s Ministry of Health to
adopt a series of measures to control drug prices and drug imports and to
stabilise the country' s pharmaceuticals market. Beginning in June 2004,
foreign pharmaceutical companies holding operating licences in Vietnam could
begin supplying pharmaceuticals to any local import-export company in the
country, only if the local distributors or manufacturers could not supply the
drug, or could only supply it at a very high price. It is said that these
measures have led to the distortion of the pharmaceuticals market, including
OTC healthcare.
OTC healthcare market dominated by foreign companies
Over 60% of drugs are imported and supplied by foreign companies as local
companies cannot compete with their foreign counterparts due to their
small-scale capacity, much weaker financial position, less modern
technologies, less effective distribution systems and local consumers'
preference for foreign products. The domination of foreign companies
originates from the vague regulations and weak administrative capabilities of
governmental agencies, which have encouraged the foreign companies to occupy
the market.
Modern standards gradually applied to Vietnam' s pharmaceuticals market to enhance product quality
As Vietnam integrates into the global economy, there has been pressure to
adopt international standards, such as regulatory issues, to ensure
pharmaceutical products are of a high quality. GMP (Good Manufacturing
Practice) came into effect in November 2004 and is compulsory for all
pharmaceutical manufacturing sites built thereafter.
| 
View Cart
