CONSUMER HEALTH IN VIETNAM - ANALYSIS

Country Report | Sep 2021

EXECUTIVE SUMMARY Market Sizes

Consumer health in 2021: The big picture Sales of Consumer Health
Retail Value RSP - VND billion - Current - 2007-2026
In 2021, as several cities and provinces continue to be subject to lockdown and social
distancing measures, large numbers of people are buying medicines for storage
purposes due to ongoing fears of further long periods of home seclusion. Vitamin and 45,319 Forecast
dietary supplements, analgesics and cough, cold, and allergy (hay fever) remedies are 80,000
categories that are seeing particularly strong growth rates in both value and volume
sales. However, products such as wound care and digestive remedies are continuing to
see lower demand in 2021 as people are limiting the time they spend outside.
Nonetheless, overall, the consumer health market is experiencing a stronger growth 60,000
pace in value sales compared to the previous year mainly thanks to a brighter economic
performance and the ageing population.
40,000
COVID-19 pandemic lifts demand for vitamin and dietary supplements,
analgesics and cough remedies
In 2021, the demand for consumer health products such as vitamins and dietary 20,000
supplements, analgesics and cough remedies remained high due to the ongoing
presence of COVID-19 in the country. The Ministry of Healthcare also encouraged
people to exercise regularly and take vitamins daily in order to strengthen their
immune system and fend off the virus. All of these factors helped to boost value sales 0
2007 2021 2026
in these categories in 2021.

International players characterise the consumer health market in 2021

Sales Performance of Consumer Health
In 2021, international players such as Abbott Vietnam Co Ltd, Herbalife Vietnam Ltd, % Y-O-Y Retail Value RSP Growth 2007-2026
New Image Vietnam Co Ltd, GSK Consumer Healthcare and Sanofi-Aventis Vietnam Co
Ltd continued to dominate the consumer health market due to their high brand
reputation, wide distribution networks and strong financial capability. In order to
10.0% Forecast
compete with those foreign players and gain attention from Vietnamese consumers, 25%
many local pharmaceutical companies such as Duoc Hau Giang, Nam Ha, Traphaco and
OPC focused on upgrading their factories to achieve higher quality standards such as
EU-GMP, PIC/S and JAPAN - GMP while simultaneously launching new more highly 20%
sophisticated products. Moreover, these local companies are also increasingly focusing
on improving their distribution chains through the implementation of new technology
as a sustainable strategy for longer term development. 15%

Chemists/pharmacies remains a significant channel for consumer

10%
health, while e-commerce achieves strong growth
During the review period, there was a significant expansion of chemists/pharmacies
5%
such as Pharmacity and Long Chau within the Vietnamese market. These players
focused on expanding their networks in both rural and urban areas. By the end of 2021,
Pharmacity and Long Chau are expected to open 1,000 and 500 stores respectively and
0%
aim to become the leading players in the chemists/pharmacies channel in the future. 2007 2021 2026
Hence, as chemists/pharmacies have been allowed to remain open during the
pandemic, this channel has become an even more important distributor in helping
companies reach a wider audience. Moreover, as people continue to limit the time
they spend outdoors due to the outbreak, Pharmacity’s online sales have also recorded
an impressive growth rate, with this trend expected to grow gradually as Vietnamese
consumers become accustomed to shopping online during the pandemic. This is set to
encourage more retailers to adopt an omnichannel approach in consumer health.

Consumer health achieves healthy growth over the forecast period

According to the General Statistics Office in 2020, Vietnam's population is ageing at an
unprecedented rate. This combined with a low birth rate will lead to a high proportion
of elderly people over the age of 65 by 2055. However, government statistics also
predict that the Vietnamese economy is expected to achieve strong GDP growth of 6%
in 2021 and 2022. This economic improvement is expected to be higher than in most
other countries within the ASEAN region and globally. This will also be a good
springboard to maintain economic growth throughout the rest of the forecast period.
Thus, the bright economic performance will be a significant factor contributing to the
growth of consumer health, as consumers will be increasingly willing to spend more on
healthcare. Hence, due to the ageing population and higher living standards, consumer
health is expected to witness a healthy growth rate over the forecast period which will
make Vietnam an attractive market for new entrants, in a continuation of the trend

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seen in the last few years of the review period. The market is therefore expected to
become more competitive for both existing and new players as consumer health starts
Sales of Consumer Health by Category
Retail Value RSP - VND billion - Current - 2021 Growth Performance
to witness a more mature growth rate across most categories.
Despite the expected continued slowdown in the birth rate, parents have already OTC
8,916.7
proven more willing to spend on caring for their children, with this trend set to
accelerate due to the predicted strong economy and rising disposable incomes in the Sports Nutrition
387.6
wake of the pandemic. This is expected to maintain strong growth for paediatric
consumer health, despite the lower number of children in the country in the forecast Vitamins and Dietary Supplements
20,775.2
period. Vitamins is expected to be one of the highest growing categories over the
forecast period. In addition to the ageing population, this will also be a lasting impact Weight Management and Wellbeing
15,239.7
of the COVID-19 pandemic in the country. Consumers are expected to be more
proactive and look after their health and boost their immunity, rather than waiting to Herbal/Traditional Products
12,680.3
treat symptoms when they appear. The rising number of health-conscious consumers is
also expected to lead sports nutrition to see a strong increase in sales, although this Allergy Care
364.6
will be from a low base. Most OTC categories are not expected to see such strong
growth rates, due to greater maturity and the impact of better healthcare. Paediatric Consumer Health
912.1
0% 10% 20%
APPENDIX
CONSUMER HEALTH 45,319.2 CURRENT % CAGR % CAGR
YEAR % 2016-2021 2021-2026
OTC registration and classification GROWTH

A Ministry of Health circular from May 2003 addressed the categorisation of OTC and
Rx products. The circular listed seven Rx groups: addictive, psychoactive, toxic class A
and B, antibiotics, harmonic (except for contraceptive), cardiac and medical fluid
transfer. The circular also stated that drug sellers are only allowed to sell OTC drugs
Competitive Landscape
and are not permitted to sell Rx products without a doctor’s prescription. However,
in reality, Rx products are often sold without a prescription in Vietnam, due to the Company Shares of Consumer Health
habit of consumers purchasing medicinal products based on personal experience or % Share (NBO) - Retail Value RSP - 2021
following guidance from pharmacists. As a result, some common Rx products such as
antibiotics can easily be purchased in pharmacies throughout the country. Herbalife Vietnam Ltd 16.3%
Abbott Vietnam Co Ltd 13.2%
Only consumers with healthcare insurance are entitled to the reimbursement of
healthcare costs. On 1 January 2010, an amended health insurance law came into New Image Vietnam Co Ltd 3.9%
effect, with those who have subscribed to the insurance programme now having to Haugiang Pharmaceutical ... 3.9%
pay as much as one and a half times more than what they contributed in 2009. The
new rate is 5% of monthly salary, whilst students have to pay 3% of the basic salary GSK Consumer Healthcare 3.0%
rate assigned by the government. Products purchased for children under the age of Traphaco JSC 3.0%
six are subject to 100% reimbursement. Retired people, ethnic minorities, people in
poverty and those who are unable to work are entitled to a 95% reimbursement, Bayer Vietnam Ltd 2.8%
with all others being entitled to 80%. Nu Skin Vietnam Co Ltd 2.5%

According to the World Health Organization, generic products can be used in place of Amway Vietnam Ltd 2.3%
original products after the patent of the original product has expired (patents last for UPSA, Laboratoires 2.2%
20 years on average). In Vietnam, domestic manufacturers wishing to produce
Sanofi-Aventis Vietnam C... 1.5%
generic drugs only need comply with a number of requirements set by the Ministry
of Health and do not need to perform clinical tests on people. In general, the Rohto-Mentholatum Vietna... 1.3%
majority of domestically produced drugs are generic. The price of generic drugs is
Tradewind Asia Ltd 1.2%
lower than that of original products. The amount spent on research, development
and production of a new drug can reach as high as USD800 million and it may take United Pharma (Vietnam) ... 1.1%
decades before the product is approved for distribution. However, after a product’s Imexpharm Pharmaceutical... 1.1%
patent has expired, other manufacturers only need to pay USD1 million to buy the
rights to produce the drug themselves. Tiens Vietnam Co Ltd 0.9%
Korea Ginseng Corp 0.9%
A circular jointly issued by the Ministry of Health and the Ministry of Culture and
Information in January 2004 covers regulations regarding the advertising of medical Boehringer Ingelheim Pha... 0.8%
products. All advertisements must include certain information, such as usage International Medical Co... 0.8%
instructions, possible side effects, the name and address of the manufacturer and
distributor, etc. Consumer health products approved by the Ministry of Health and Others 37.2%
which have a valid registration number can be advertised on television and radio,
through newspapers, magazines, flyers, electronic newspapers, company websites,
banners, transportation vehicles, mobile objects, luminescent objects and other
advertising means.
Vietnam’s Drug Administration is mainly responsible for the control and monitoring
of the packaging and labelling of medicines. Rx drugs must have Rx printed on the
bottom left-hand side of the label and must clearly state “prescribed product”.
“Keep away from children” should also be indicated on the label if applicable. Based
on article 24 of the circular 15/2018/TT-BYT, there are some requirements for
labelling contents. Organisations and individuals producing and/or trading products
in Vietnam, apart from complying with the regulation on goods labelling, must also
comply with the following regulations:
Medical nutrition food must contain the following phrases: “Medical nutrition food”
and “Use for patients with the supervision of medical personnel”.
Foods for special diets must include the phrase: “Nutritional products (for specific
subjects)” on the main face of the label to distinguish them from ordinary foods.
Particularly for imported products, names of organisations and individuals that are
responsible for inscribing on product labels must show: names and addresses of
production organisations and individuals and names and addresses of organisations
and individuals.

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 The distribution network for consumer health in Vietnam is very wide and extends Brand Shares of Consumer Health
throughout the country. Chemists/pharmacies dominate sales in large cities. Now % Share (LBN) - Retail Value RSP - 2021
that Vietnam is a member of the World Trade Organization, there is the possibility
that the country’s medicinal product distribution network will be taken over by Herbalife Nutrition 16.3%
foreign players. In order to compete with them, the government requires all Ensure 12.1%
drugstores in the country to meet GPP (Good Pharmacy Practice) criteria. GPP aims to
ensure the quality of medicinal products and protect the health of consumers. In Alpha Lipid 3.7%
order to become GPP-certified, chemists/pharmacies must only sell Rx drugs on Panadol 2.6%
prescription. In addition, only certified pharmacists are allowed to sell medicinal
Traphaco 2.6%
products to consumers and all products offered by approved stores must have
documentation of origin and transaction receipts. Moreover, chemists/pharmacies Pharmanex 2.5%
have to meet several requirements, such as having a minimum area of 10 sq m, and Berocca 2.4%
separate display and preservation areas. Stores must also meet several storage
condition regulations, such as maintaining a temperature of below 30°C and Nutrilite 2.0%
humidity of less than 75%. Efferalgan 1.5%
Rohto 1.2%
Vitamins and dietary supplements registration and classification
Hapacol 1.2%
Local and international players are increasingly attracted to Vietnam’s vitamins and
Glucerna 1.1%
dietary supplements landscape, due to Vietnam’s huge population. However, this
market remains fragile because a large number of counterfeit and poor-quality Bocalex 1.1%
goods are advertised and sold in many channels, especially by e-commerce retailers. DHG products 1.1%
In 2018, the Ministry of Health decided to apply stricter regulations, such as the
circular 15/2018/TT-BYT on vitamins and dietary supplements, not only to protect Tiens 0.9%
consumers’ health but also to limit counterfeits and poor-quality goods. Cheong-Kwan-Jang 0.9%
Based on article 32 of the circular 15/2018/TT-BYT, there is a new regulation on IMC 0.8%
combination products with new uses: pms-Mexcold 0.7%
New combination ingredients must be registered for the Ministry of Health’s Plusssz 0.7%
product publication. Others 44.6%
New combination ingredients must be listed with quantitative ingredients for each 5-Year Trend
one in the composition or formula. Increasing share Decreasing share No change

Vitamins and dietary supplements must register advertising content before launch
in the market. Dietary supplements include protective health foods, medical
nutrition foods, special diet foods and nutrition products. Amongst them, there is no
ban of advertising nutrition products used for children up to 36 months old,
following article 7 of the Advertising Law.
Based on the article 27 of the circular 15/2018/TT-BYT, in addition to complying with
the provisions of the advertising law, the registration of food advertising content
must also comply with the following provisions:
Before advertising, organisations and individuals having products to advertise must
register the advertisement content with the agencies granting the paper of receipt
of the product registration according to current regulations.
The content of the advertisement must be consistent with the use and effect of the
product published in the product announcement. The content may not use images,
equipment, costumes, names, medical facilities, doctors, pharmacists, medical staff,
thank you letters of patients, doctor's’ articles, pharmacists or health workers to
advertise foods.
Requirements for health protection dietary supplements’ advertising content
include:
There must be a statement that reads “This food is not a medicine and has no effect
to replace medicine”; the writing must be clear and contrast with the background
colour.
Advertisements on spoken and visual newspapers must clearly read their
recommendations according to the provisions mentioned above.
Advertisements in newspapers and on spoken media with a duration of fewer than
15 seconds are not required to read, “This food is not a medicine and does not have
the effect of replacing medicine”, but the statement must be shown in the written
advertisement.

Self-medication/self-care and preventive medicine

Over the review period most Vietnamese consumers chose to self-medicate when
suffering from mild symptoms of illnesses such as colds and flu, including coughs
and headaches, instead of seeking advice from a doctor or other healthcare
professional. The reason for this is that going to see a doctor for something deemed
a relatively minor issue takes time, and often involves queuing and sitting in a very
crowded and unpleasant waiting room. Consumers generally only go to the doctor if
their symptoms do not improve. However, the practice of self-medication appears to
be less popular in major cities and urban areas, as consumers have become
increasingly aware of the possible health hazards of misusing medicinal products
which they do not know much about. Nevertheless, self-medication continued to be
quite common in rural areas.
In 2021, Vietnamese consumers have increasingly been relying on alternative

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 channels to self-diagnose and to identify their health needs instead of receiving
advice directly from sellers at chemists/pharmacies or from a doctor, as they did
prior to the pandemic. Consumers have been using the internet to gather health
information throughout all parts of the health journey, such as pre-diagnosis,
diagnosis and treatment, before purchasing products. This trend has brought more
sales for consumer health companies, as many purchases are the result of consumers
taking their health into their own hands, not a result of direct advice from a doctor.
Following this trend, e-commerce sales are also gradually rising, as has been the
case over the last few years, mainly thanks to huge efforts by manufacturers to
improve the online shopping experience through better online education and
targeted marketing. In addition, customers feel more comfortable buying consumer
health products online. Therefore, e-commerce is playing an increasingly significant
role, contributing to the growth of this distribution channel.

Switches
There were no switches seen in consumer health in Vietnam over 2020/2021.

DISCLAIMER
Forecast and scenario closing date: 6 September 2021
Report closing date: 17 September 2021
Analysis and data in this report give full consideration to consumer behaviour and
market performance in 2021 and beyond as of the dates above. For the very latest
insight on this industry and consumer behaviour, at both global and national level,
readers can access strategic analysis and updates on www.euromonitor.com and via the
Passport system, where new content is being added on a systematic basis.

DEFINITIONS
The total market size given for consumer health is the sum of OTC, sports nutrition,
vitamins and dietary supplements and weight management and wellbeing.
The sum of these categories is greater than actual market size because allergy care is
a duplicate of categories found in cough, cold and allergy (hay fever) remedies,
dermatologicals and eye care; paediatric consumer health is an aggregate of
paediatric categories in OTC and vitamins and dietary supplements; and
herbal/traditional products is an aggregate of herbal/traditional categories in OTC
and vitamins and dietary supplements.
2021 data are provisional and based on part-year estimates.

SOURCES
Sources used during the research included the following:

Summary 1 Research Sources

Official Sources Central Institute for Medical Science Information (CIMSI)

Depa rtment of Drug Adminis tra tion
Drug Adminis tra tion of Vietna m
Korea Tra de Inves tment Promotion Agency (KOTRA)
Minis try of Hea lth
Trade Associations Vietna m As s ocia tion of Functiona l Foods
Vietna m Pha rma ceutica l Cos As s ocia tion
World Self-Medica tion Indus try (WSMI)
Trade Press a ngi.com.vn
ba omoi.com
Da n Tri Online
Da n Viet
Doa nh Nha n Sa igon Online
Kinh Doa nh & Pha p Lua t
Phu Nu Online
Sa igon Gia i Phong Online
Sa igon Times
Ta p Chi Cong Sa n
Ta p Chi Dinh Duong
Tha nh Nien Online
Thu Vien Pha p Lua t Online
Vietna m Economic Times
Vietna m Inves tment Review
Vietna m News
Vietna m Plus
Vietna mnet

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 Official Sources Central Institute for Medical Science Information (CIMSI)
Vietna mShipper
Vina net

Source: Euromonitor Interna tiona l

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