Pfizer, one of the world’s largest pharmaceutical companies, has made major progress in Vietnam over the past decades. Vietnam’s growing healthcare sector, rising middle class, and increased demand for innovative treatments have presented a strong market opportunity for Pfizer. As one of the world’s leading pharmaceutical companies, Pfizer has expanded its footprint in Vietnam by introducing a range of critical treatments and vaccines. This article focuses on Pfizer’s strategic entry into Vietnam, and how the company has established itself as a dominant player in the regional pharmaceutical landscape.

Pfizer’s Entry Strategy

Market Research and Regulatory Compliance: Pfizer’s entry into Vietnam was carefully planned out, starting with extensive market research to understand the country’s healthcare needs, regulatory framework, and competitive landscape. Vietnam, with its distinct regulatory environment, required Pfizer to adapt its strategies to meet local requirements. The company worked closely with the Drug Administration of Vietnam (DAV) to obtain approvals for critical drugs such as Comirnaty (COVID-19 vaccine) and other treatments, navigating Vietnam’s complex regulatory processes. With the Vietnamese Ministry of Health (MoH) reviewing and amending the Pharmacy Law to encourage foreign investments, Pfizer positioned themselves well to capitalize on these policy changes.

Collaborative Joint Ventures: Collaboration with local pharmaceutical companies has been key to Pfizer’s success in Vietnam. Pfizer has made strategic partnership decisions, like partnering with Vietnam Vaccine JSC (VNVC) to strengthen vaccine distribution and healthcare capabilities in Vietnam to support its pharmaceutical sales in Vietnam, especially with regards to their Covid-19 Vaccines. In 2023, Pfizer signed a Memorandum of Understanding (MoU) with VNVC to promote the prevention of infectious diseases, focusing on increasing the accessibility of vaccines across the country. Additionally, Pfizer has explored opportunities to partner with local firms to produce COVID-19 antiviral pills, such as Molnupiravir and Paxlovid, helping to boost local production and enhance supply chains.

Localizing Products for SEA Markets

Vaccine Rollouts

Pfizer’s success in Vietnam was underscored by its critical role during the COVID-19 pandemic. The country was in urgent need of vaccines, and Pfizer responded swiftly. Pfizer worked closely with the Vietnamese government to supply and distribute its Comirnaty vaccine, which played a key role in Vietnam’s pandemic response. The company collaborated with the MoH to ensure efficient distribution through hospitals and vaccination centers and also partnered with local logistics companies to ensure the vaccines could be distributed to various remote regions.

Tailoring Products for Local Health Concerns

Understanding the healthcare challenges unique to Vietnam, Pfizer has tailored its product offerings accordingly. While the company is widely known for its vaccines and antiviral treatments, it has also focused on addressing Vietnam’s rising problem of non-communicable diseases (NCDs), such as cancer and cardiovascular diseases. Pfizer’s commitment to introducing specialized drugs like monoclonal antibodies for cancer treatment and biosimilars has put them in a great position with local healthcare providers. Moreover, its collaboration with the MoH on the development of biosimilar and biomedical products aligns with Vietnam’s broader goal of advancing its pharmaceutical industry which has brought the firm more local support and recognition.

Pfizer’s Long-Term Strategy in Vietnam

Expanding Manufacturing and Research Capabilities

A critical component of Pfizer’s long-term strategy in Vietnam has been its focus on local manufacturing. By engaging with local pharmaceutical companies and transferring technology for the production of both patented and generic drugs, Pfizer has positioned itself for sustainable growth in Vietnam’s healthcare sector. The company aims to contribute to Vietnam’s goal of producing at least 100 patented drugs and vaccines by 2030, in line with the government’s National Program on the Development of the Pharmaceutical Industry.

Building Capacity and Training Healthcare Professionals:

Pfizer has also focused on building healthcare capacity in Vietnam through educational programs and partnerships with local universities and hospitals. These initiatives aim to train healthcare professionals on the latest treatments and innovations, ensuring that the Vietnamese healthcare system can deliver better patient outcomes. For example, Pfizer has offered training programs on the use of biosimilars and cutting-edge treatments for cancer, further establishing its reputation as a leader in healthcare innovation.

Challenges Faced by Pfizer

Despite Pfizer’s strong foothold in Vietnam, the company encounters several challenges that could hinder its growth and expansion within the region. A major challenge faced by them is the task of Navigating complex and lengthy drug approval processes which can delay the introduction of new treatments and vaccines. The rise of local manufacturers such as DHG Pharma, Traphaco, TV. Pharm etc. and other multinational companies such as Eli Lily, Nova Nordisk, Takeda etc. can also lead to Pfizer losing a part of their market share in the Vietnamese pharmaceutical segment. Then there is the problem of Ensuring reliable distribution, especially in remote areas, which poses logistical challenges especially for the transport of temperature-sensitive vaccines.

Even with the challenges faced by Pfizer, they have firmly established itself as a leading pharmaceutical player in Vietnam. Pfizer’s entry into Vietnam was driven by careful planning, strategic collaborations, and a deep understanding of the country’s healthcare landscape Through partnerships with local companies, tailored products, their commitment to sustainability and with its long-term strategy focused on local manufacturing, capacity building, and innovation, Pfizer is poised to continue its growth in Vietnam’s dynamic healthcare market.