Foreign capital flows to Vietnam’s pharmacy sector

Attracting foreign capital will allow Vietnamese pharmacy firms improve their competitiveness and develop the national pharmacy industry. However, analysts warn that the market may fall into foreign hands.

A survey conducted by Grant Thornton earlier this year found that the healthcare & pharmacy market is among the three business fields that attract foreign investors most. The two others are food & beverages and retail.

Foreign investors have been increasing their presence in Vietnam by buying stake in Vietnamese pharmacy firms. 

Abbott acquired a 51.69% stake in Domesco JSC, one of the largest deals made recently.

Analysts said SCIC (the State Capital Investment Corporation) plans to sell all of Domesco’s shares, 34.7% of charter capital in 2017. Abbott won’t miss the opportunity to acquire all of Domesco.

In another affair, Taisho, one of the top 4 Japanese pharmaceutical conglomerates, has become a large shareholder in Hau Giang Pharmacy, holding a 24.4% stake. 

In July 2017, the company’s management board unexpectedly submitted to the shareholders’ meeting a plan to lift the foreign ownership ratio ceiling to 100%.

At Traphaco JSC, two foreign shareholders Mekong Capital and Vietnam Holding, are finalizing divestment procedures. The divestment by the two funds would bring a golden opportunity to other foreign investors who want Traphaco shares. 

Sources said a large pharmacy conglomerate from the Republic of Korea will buy a stake to be sold by the two funds at a price which is 35% higher than the market price.

Phan Huu Thang, former director of the Foreign Investment Agency, commented that by acquiring a stake in Vietnamese pharmacy firms, foreign investors won’t have to spend time on administrative procedures. Therefore, making M&A deals is believed a wise move, even if foreign investors accept share prices higher than market prices.

Buying a stake in Vietnamese pharmacy firms is seen as ‘killing two birds with one stone’ which not only allows investors to make money with shares, but also helps them enter the domestic market.

Under Vietnam’s FTA commitments, foreign pharmacy firms are not allowed to distribute drugs directly in the Vietnamese market. However, once holding a controlling stake in Vietnamese firms, they have opportunities to distribute their products in Vietnam.

An analyst commented that, when buying pharmacy shares, foreign investors are not targeting production lines of pharmacy firms or their staff, but the potential market.

Therefore, he said, while foreign capital flow into the pharmacy sector will help Vietnamese manufacturers improve their competitiveness, it will also bring risks: Vietnamese firms may fall into foreign hands.

Vietnamnet

Other News

SBV raises short-term capital lending cap to 40%

SBV raises short-term capital lending cap to 40%

The new circular will help credit institutions have more room to provide capital to businesses and investment projects to support high economic growth in the next few years, while increasing flexibility in the SBV’s monetary policy management.

Business confidence in Vietnam rebounds strongly: UOB

Business confidence in Vietnam rebounds strongly: UOB

The study found that 85% of Vietnamese enterprises reported positive business sentiment, a sharp increase from 48% in 2025, when business confidence was weighed down by uncertainties surrounding US tariff policies and related trade developments.

Bac Ninh seeks high-quality foreign investment for sustainable growth

Bac Ninh seeks high-quality foreign investment for sustainable growth

According to Vice Chairman of the provincial People’s Committee Pham Van Thinh, the province aims to maintain stable and sustainable growth, improve the competitiveness of both the economy and local businesses, and make better use of free trade agreements (FTAs) to expand and diversify export markets.

Green building trend flourishes in Ho Chi Minh City's real estate landscape

Green building trend flourishes in Ho Chi Minh City's real estate landscape

The International Finance Corporation (IFC) highlighted the city's dominance in green-certified building floor space in Vietnam, reflecting the rapid expansion of the green building market with 780 completed green buildings encompassing over 18.69 million sq.m by 2025, predominantly certified by EDGE and LEED.

UK supports Vietnam in wind power and green finance development

UK supports Vietnam in wind power and green finance development

The United Kingdom officially announced two new climate cooperation initiatives to support Vietnam in its energy transition and green growth journey. These programs focus on offshore wind power development and the creation of a sustainable green financial ecosystem.

Ample room remains for Vietnam–India logistics cooperation

Ample room remains for Vietnam–India logistics cooperation

The GTTCI expert noted that alongside logistics and integrated warehousing, e-commerce is expected to be a particularly high-growth sector in the coming years. He described it as a multi-billion-dollar market with significant untapped opportunities for cooperation between Vietnam and India.

Exports gain momentum from high-tech growth drivers

Exports gain momentum from high-tech growth drivers

According to the Ministry of Industry and Trade, Vietnam’s exports reached 215.66 billion USD in the first five months of 2026, up 19.5% year-on-year. Twenty-six export items generated more than 1 billion USD in revenue each, including seven with turnover exceeding 10 billion USD.

Vietnam–China crossings see spike in ASEAN fresh produce

Vietnam–China crossings see spike in ASEAN fresh produce

Since the start of the summer harvest season, China's two major border gates with Vietnam, Youyi Guan in Pingxiang and Beilun 2 Bridge in Dongxing, have entered their peak period for handling imports of fresh agricultural and seafood products from member states of the Association of Southeast Asian Nations (ASEAN).

Cargo handling operations at Berths 3 and 4 of the Hai Phong International Gateway Port. (Photo: VNA)

AI reshapes logistics, raising bar for workforce skills

According to the Vietnam Logistics Business Association (VLA), the logistics sector will require around 2.2 million workers by 2030, including 1.6 million employees for logistics service providers and nearly 600,000 personnel supporting logistics operations in manufacturing and trading enterprises.

Robust dispute resolution framework key to Vietnam's IFC ambitions

Robust dispute resolution framework key to Vietnam's IFC ambitions

The development strategy for VIFC-HCMC envisions a comprehensive financial ecosystem encompassing green finance, carbon credits, financial technology (fintech), blockchain technology, digital assets, digital banking and other innovative business models. These highly internationalised sectors involve complex cross-border transactions and sophisticated legal structures.