The policies implemented in 2024 and taking effect from early 2025 (such as the amended Pharmaceutical Law, amended Health Insurance Law, and Bidding Law) have brought a bright first half to many pharmaceutical businesses. Statistics from VietstockFinance show that out of 32 pharmaceutical companies that announced their second-quarter financial statements, 16 reported profit increases (with one turning losses into profits). However, the remaining half experienced declining results, even falling into losses.
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Pharmaceutical Business Results for Q2 2025
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Most of the large companies in the industry continued their growth momentum by restructuring their product portfolios. For example, Duoc Hau Giang (HOSE: DHG) increased its profit by 23%, reaching VND 237 billion, despite only a 7% rise in revenue to nearly VND 1,200 billion. The company attributed this success to restructuring its product portfolio towards higher value-added items and reducing production costs.
| DHG maintains its growth trajectory in Q2 2025 |
The duo of Duoc Binh Dinh (Bidiphar, HOSE: DBD) and Imexpharm (HOSE: IMP) both achieved record profits. Bidiphar, in particular, recorded its highest-ever quarterly profit of VND 90 billion, a 25% increase, marking its sixth consecutive quarter of profit growth. DBD attributed this success to changes in its business structure and a focus on self-produced pharmaceutical items. Additionally, improved performance from associated companies also contributed to this quarter’s growth.
| Bidiphar achieves its highest quarterly profit |
Meanwhile, IMP set a new quarterly profit record of VND 90 billion, a 37% increase from the previous year. This was also due to adjustments in their product portfolio and more effective management of selling and administrative expenses. IMP further noted that both their OTC and ETC channels showed positive development, especially the OTC channel, which led the growth with a 32% increase compared to the previous year, while ETC grew by 24%.
| Imexpharm achieves record profit in Q2 |
Another notable company, FRT (FPT Retail), which owns the Long Chau chain of pharmacies, saw its pharmaceutical segment bring in more than VND 8,000 billion in revenue, a 34% increase, with EBITDA reaching VND 361 billion, up 64%. The company shared that in the first six months of the year, the Long Chau chain opened 300 new pharmacies and vaccination centers, now totaling nearly 2,200 pharmacies and 178 vaccination centers, with an average revenue of VND 1.2 billion per pharmacy per month.
However, not all industry leaders rode this wave of growth. Duoc Viet Nam (HOSE: DVN) witnessed a 43% drop in net profit, falling to VND 141 billion. The company explained that the significant profit decline was due to increased financial expenses resulting from fluctuations in the stock prices of some of the companies DVN invests in, which led to higher provisioning. Additionally, profits from joint ventures and associates plummeted (a loss of VND 937 million compared to a profit of VND 69 billion in the previous year). Moreover, a 9% decline in revenue indicates that DVN‘s business performance in Q2 2025 was not as robust as the previous year.
| Duoc Viet Nam continues to see declining profits |
Duoc Ha Tay (HNX: DHT), despite achieving a respectable 16% revenue growth to VND 574 billion, saw its net profit decrease by 29%, settling at VND 13 billion. This was mainly due to increased financial expenses from exchange rate fluctuations and high selling and administrative expenses. Additionally, the company’s cost of goods sold also increased significantly, resulting in a slight decline in gross profit compared to the previous year.
Similarly, Domesco (HOSE: DMC) experienced an 11% rise in revenue to VND 510 billion but suffered a 39% drop in net profit to VND 32 billion. The company attributed this to several factors, including increased raw material costs and production expenses due to reduced supply, escalating transportation costs, adverse exchange rate fluctuations affecting import prices, and higher marketing expenses due to enhanced promotional and marketing activities to stimulate business amid a slow-growing market.
The cumulative picture for the first six months of the pharmaceutical industry showed significant similarities to the second-quarter results. Major players like DHG, DBD, and IMP maintained their profit growth trajectories. Conversely, DVN experienced a significant 35% decline, earning VND 213 billion in net profit, while DMC saw a 9% profit drop to VND 111 billion.
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Pharmaceutical Business Results for the First Six Months of 2025
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Will the growth trend continue?
The supportive policies from the government, such as the amended Pharmaceutical Law, the 2023 Bidding Law, and the Health Insurance Law, which came into force in late 2024 and early 2025, are creating significant opportunities for companies in the industry by promoting the development of domestic pharmaceutical production, reducing reliance on imported medicines, and encouraging investment in research and development.
According to Ms. Pham Thi Thanh Huong, CEO of DBD, these new regulations are rapidly transforming the business environment in the pharmaceutical industry and present opportunities for companies capable of producing internationally compliant medicines.
Additionally, the Vietnamese market demonstrates strong potential for the pharmaceutical industry, given the country’s rapid aging population. Some projections indicate that by 2036, Vietnam will transition from an “aging” to an “aged” society. Older adults typically have higher demands for pharmaceuticals and healthcare services due to the aging process and associated health concerns.
However, challenges remain due to the inconsistent application of the law. Some new provisions are still principle-based and lack detailed guidelines for implementation (such as in the areas of price declaration, drug registration, and bidding), leading to potential differences in legal interpretation between central and local authorities. This discrepancy increases compliance costs and legal risks for businesses.
– 09:38 26/08/2025
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