After record profits in 2023, Vietnam’s pharmaceutical industry is facing limitations in 2024 due to rising raw material costs and increased market competition.
SSI Securities Corporation forecasts pharmaceutical profit growth of 8.4% in 2024, lower than the 15.5% projected for the market’s benchmark VN-Index. It estimates an 8% increase in revenue and a 6% net profit growth for companies in the industry.
The lower projected net profit growth is due to the rising costs of Active Pharmaceutical Ingredients (API), as well as the healthcare market having lower gross profit margins compared to retail.
Still, Mirae Asset Vietnam Securities Company believes that legal and regulatory reforms will help drive growth in Vietnam’s pharmaceutical sector.
The financial services firm forecasts that the value of the country’s pharmaceutical market will reach $7.89 billion in 2024, a 9.1% increase year-on-year.
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