Vietnam - Sit And Watch Or Develop Entry Strategy

Until recently, the pharmaceutical market of Vietnam has escaped the attention of all but a few multinational pharmaceutical manufacturers. However, with a population of nearly 71 million people, this market was valued at $153 million at cif/ex-factory prices in 1993, according to a new report from IMS Pharma Strategy Group, with imports capturing more than 50% of the total.

Since 1989, the average compound annual growth has been 30% in US dollar terms, with a significant leap in imports in 1993. Between 1989 and 1992, the source of supply of these imports has changed dramatically; the largest suppliers originally were the socialist countries Hungary and the USSR, but are now replaced by France, Germany and Hong Kong.

Opportunities for growth continue to be significant, with the market forecast to grow by 22% per annum over the period to 1998, resulting in per capita value of $4.40 (albeit still low by comparison with similar markets, says IMS, but a major step forward compared with the per capita value of under $3 in 1989).