The outbreak of the Corona Virus Pandemic has led to massive changes in the way the industries used to function; the healthcare sector of all the countries faced the major changes and perception of health and fitness also changed among the consumers. As of December 10, 2020, the number of cases crosses 68.8 million cases globally and more than 1.57 million people lost their lives. With one of the lowest cases and deaths worldwide, Vietnam’s journey has stood out in all of South East Asia and the world as it managed to successfully combat the virus, especially the first wave. Experience with SARS and Avian influenza helped the country take appropriate and timely action against Covid-19.
The credit for the country’s success can be largely given to the government in keeping COVID-19 transmission rates under control due to its swift decision-making, effective public health messaging, and aggressive contact tracing. Vietnam crushed its first wave of coronavirus infections in April and went nearly 100 days without local transmission until the virus remerged and was quickly contained in the central city of Da Nang in July. On November 30, the country reported its first locally transmitted case in almost three months and resorted to measures such as tight screening, contact tracing, border closures and suspension of inbound international flights. As of December 10, 2020, the number of Covid-19 cases in the country reached 1,381, with total deaths reaching 35. Vietnam is also expected to conduct the first phase of human trials of a locally made COVID-19 vaccine from December 17 as per the health ministry.
In the first half of 2020, Vietnam’s economy was severely hit due to Covid-19, and recorded the lowest GDP growth rate in the last three decades, according to World Bank. However, Vietnam’s growth in the year could be one of the highest in the world due to its success with containing the spread of the virus in the country. The IMF projected Vietnam’s GDP growth rate at 2.4% for the 2020 in November.
Impact on Vietnam Pharmaceutical Industry: At the beginning of 2020, the pharmaceutical industry in Vietnam faced temporary shortage of API as it is reliant on China & India for majority of its API imports. Factory closures in some regions in China and restricted exports from India due to lack of raw material from China, impacted the industry. As a result, the total pharmaceutical imports into the country declined by 30.8% during Jan-Feb 2020 as compared to the same period in 2019.
Change in Consumer Attitude towards Health and Wellness: The outbreak of corona virus pandemic stimulated the shift from prescribed medicines towards OTC products. The overall consumer spending on OTC & supplements increased by 2% during Feb-March 2020 as compared to the same period in 2019. A shift towards preventive healthcare also accelerated during this period. Consumers started demanding higher amounts of immunity boosters, functional foods, vitamins, minerals etc. as a precaution against the virus.
Impact on Pharmacy Sales and Future Outlook: At the onset of the pandemic, pharmacies & drugstores in Vietnam witnessed higher sales with an increase of 162-164% in February 2020 as compared to February 2019. The sales and customer footfall in pharmacy stores declined a little after a nationwide lockdown was imposed in April. The sales however started stabilizing after the lockdown restrictions were lifted and the market started to recover. Pharmacies witnessed higher demand for analgesics, antipyretics, pain relievers, cough & fever, eye drops, nasal solutions & more due to stockpiling mentality of consumers as people started storing these at their homes. Higher sales volume was also recorded for preventive products such as face masks, hand sanitizers, personal care products and more. The market is expected to recover by 2021, with sales and customer footfall reaching the pre-covid levels. Rapid store expansion of pharmacy chains and growing health awareness is further expected to positively influence the growth of the industry in future. Basis all these factors, the pharmacy retail market in Vietnam is expected to grow at a CAGR of 8.1% basis revenue and 4.6% basis number of pharmacy stores over the period 2019-2025.
Vietnam Pharmacy Retail Market (Basis Revenue and Number of Pharmacies):-
Vietnam Pharmacy Retail Market Segmentations (On the basis of Sales Volume)
By Market Structure (On the basis of Revenue and Number of Pharmacies)
Organized Market
Unorganized Market
By Product Category (On the basis of Revenue)
Prescribed Drugs
Over-the-Counter Products
Non-Pharmaceutical Products
Medical Equipment
By Region (On the basis of Revenue & Number of Pharmacies)
North
Central
South
By Therapeutic Areas (On the basis of Revenue)
Cardiovascular
Anti-Diabetic
Pain Relief/Analgesics
Vitamins/Minerals/Nutrients
Anti-Infective
Respiratory
Gastrointestinal
Neuro
Gynecology
Others
By Drug Type (On the basis of Revenue)
Generics
Patented
By Location (On the basis of Number of Pharmacies)
Street/Mall Based
Hospital Based
Pharmacy Retail Chains Covered:-
Pharmacity
Long Chau
Guardian
Medicare
Phano Pharmacy
An Khang
Trung Son
VinFa
Eco Pharmacy
My Chau
SK Plus Pharmacy
Key Target Audience:-
Pharmaceutical Manufacturing Companies
Pharmacy Retail Companies
Independent Pharmacies
Industry Associations
Government and Regulatory Bodies
Telemedicine Companies
Pharmaceutical Distributors & Wholesalers
Time Period Captured in the Report:-
Historical Period: 2014-2019
Forecast Period: 2020-2025
For More Information on the research report, refer to below link:-
Vietnam Pharmacy Retail Market
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