Vietnam’s Retail Pharmaceutical Market Takes an Unexpected Turn

According to IMARC Group, Vietnam’s pharmaceutical retail market is projected to reach approximately $8.9 billion in 2024 and is expected to hit $16.8 billion by 2033, growing at an average annual rate of 6.7%. Within this landscape, modern chains still dominate in scale, but their expansion pace is slowing down in the North.

A report by Ken Research reveals that over 60% of revenue from modern pharmacy chains still comes from the Southern provinces, where population density is high, average income is substantial, and consumer behavior is accustomed to chains. Meanwhile, the Northern market, considered the “stronghold” of traditional pharmacy models, is witnessing a strong resurgence of long-standing names like Phương Chính, Minh Tiến, HkCare, and 24h.

Amidst a competitive pharmaceutical market, Phương Chính Pharmacy continues to welcome hundreds of customers daily. Photo: Phương Chính Pharmacy

Northern Pharmacies: Traditional Yet Timeless

Major Northern pharmacies have long-established customer bases and strong local relationships. However, the recent shift lies in their proactive adoption of technology in daily operations—from online ordering and inventory management to electronic invoicing and automated debt reconciliation.

The transformation is subtle yet impactful. Internal data from leading Northern pharmacies like Phương Chính, Minh Tiến, HkCare, and 24h show revenue growth of 18–22%, surpassing the 12–14% average growth of modern chains in the same period. A representative from a traditional pharmacy chain in Ninh Bình shared:

“Previously, it took us an entire day to finalize orders and deliver. Now, with platforms like thuocsi.vn, just a few clicks, purchases are made swiftly, invoices are automatically issued, and inventory is updated instantly, all while maintaining the personal relationships that are the cornerstone of the Northern market.”

These major Northern distributors are at the heart of this transformation. They standardize product catalogs, automate wholesale processes, and directly link with digital ordering platforms, gradually replacing manual phone calls and processing. This shift enables traditional chains to operate more efficiently without significant investment.

Many pharmacies maintain a loyal customer base. Photo: Minh Tiến Pharmacy

According to a representative from Buymed, owner of the thuocsi.vn platform, “The Northern region is the fastest-growing market in 2024, driven by the demand for digitizing procurement and document management.” Internal data from Buymed (thuocsi.vn) shows a 73% increase in Northern pharmacies using digital ordering tools in 2024–2025, with the strongest growth among pharmacies over 10 years old.

From ‘Following Chains’ to ‘Reshaping the Game’

In reality, the competition between modern chains and traditional pharmacy networks is not merely a race for scale but a natural market segmentation: Modern chains excel in experience, services, and branding, while traditional pharmacies thrive on local relationships, customer understanding, and operational flexibility.

In the North, as established pharmacies evolve their methods without losing their identity, they are redefining their position—shifting from being perceived as slow-paced to becoming market leaders in pharmaceutical retail.