SEOUL — Pharmaceutical and biotechnology companies from the Republic of Korea (RoK) are turning their attention to Southeast Asia, with Việt Nam emerging as one of the most promising “pharmerging markets” in the region.

According to the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, Việt Nam’s pharmaceutical market was valued at around US$7 billion in 2023, with an average annual growth rate of over 7.3 per cent over the past decade.

Rising incomes, an ageing population and lifestyle-related diseases are driving demand, while growing per capita GDP is boosting healthcare spending. At the same time, Việt Nam is promoting cooperation with foreign partners and technology transfer to enhance domestic drug production.

Seizing these opportunities, many Korean firms are establishing local subsidiaries or seeking product approvals through clinical trials in Việt Nam.

Celltrion set up its Vietnamese subsidiary in 2024 and has since expanded steadily. The company recently gained approval for two biologics: “Remsima” (infliximab) for autoimmune diseases and “Herzuma” (trastuzumab) for breast and gastric cancer, launched in June and August.

Celltrion Vietnam has signed a one-year supply contract for Remsima with a local military hospital, while Herzuma won a two-year deal with facilities in central and southern Việt Nam. The firm also plans to bid for additional trastuzumab supply contracts with major hospitals later this year.

GC Biopharma recently obtained approval from the Drug Administration of Vietnam for its chickenpox vaccine “Barycela”. Earlier, it filed an Investigational New Drug (IND) application in Thailand to conduct Phase 3 trials of a two-dose version, expected to conclude by late 2027, before seeking approval across Southeast Asia.

Daewon Pharmaceutical completed a Phase 1 clinical trial in Việt Nam of “DW1021”, a synthetic pain reliever combining Pelubi, the 12th new drug developed in the RoK, with Tramadol.

It was the first Korean firm to conduct a Phase 1 trial in Việt Nam. Building on this success, Daewon plans further trials, leading to eventual product registration.

Other firms are expanding through acquisitions. In 2023, Dongwha Pharm entered the market by acquiring a stake in Trung Son Pharma, a local pharmacy chain. The network has since grown from about 140 outlets to 239, with plans to reach 460 by 2026. — VNA/BIZHUB