ASIA EMERGES AS THE NEW ENGINE OF BIOPHARMACEUTICAL INNOVATION: WHAT OPPORTUNITIES LIE AHEAD FOR VIETNAM?

From being the world's manufacturing hub for generic medicines, Asia is rapidly emerging as a global powerhouse in biopharmaceutical innovation. This transformation is driving advances in drug discovery and manufacturing while creating new opportunities for Vietnam to develop its biopharmaceutical ecosystem and integrate more deeply into the regional value chain.

Asia's Transformation from the "World's Pharmaceutical Factory" to a Biopharmaceutical Innovation Hub

According to McKinsey's 2026 report The Emerging Epicenter: Asia's Role in Biopharma's Future, Asia now accounts for approximately 43% of the global innovative drug development pipeline, up from 28% just five years ago. More notably, the region contributed over 85% of the growth in innovative drug development programs in 2024, reflecting the remarkable expansion of biopharmaceutical ecosystems across China, South Korea, Japan, Singapore and India.

This growth extends well beyond manufacturing capabilities. Today, Asia plays an increasingly important role across the entire biopharmaceutical value chain, encompassing research and development (R&D), clinical trials, monoclonal antibodies, antibody-drug conjugates (ADCs), cell and gene therapies, as well as large-scale manufacturing through Contract Research Organizations (CROs) and Contract Development and Manufacturing Organizations (CDMOs).

While China and India continue to lead in market size, manufacturing capacity and commercialization, Japan has established itself as a regional technology leader in monoclonal antibodies, ADCs and regenerative medicine. Meanwhile, South Korea and Singapore have strengthened their positions as international hubs for clinical research, biotechnology innovation and commercialization of advanced biologics.

Supported by favorable government policies, highly skilled talent, competitive R&D costs and strong international investment, Asia is rapidly evolving from a manufacturing base into one of the world's leading sources of pharmaceutical innovation.

This momentum is further demonstrated by several high-profile strategic partnerships. In May 2026, Pfizer and China's Innovent Biologics announced a US$10.5 billion agreement to jointly develop 12 oncology drug candidates. Japanese pharmaceutical companies have likewise become key partners in numerous licensing and co-development agreements, particularly in ADCs, oncology and regenerative medicine.

According to Reuters, the total value of biotechnology licensing deals in Greater China reached US$137.7 billion in 2025, nearly ten times higher than in 2021. These figures underscore a significant shift: global pharmaceutical companies are no longer viewing Asia solely as a manufacturing destination, but increasingly as a major source of biopharmaceutical innovation—with Japan providing technological depth, while China, South Korea, Singapore and India drive scale, speed and commercialization.

Vietnam is Building the Foundation for a Stronger Biopharmaceutical Industry

As Asia continues to reshape the global biopharmaceutical landscape, Vietnam is steadily laying the groundwork to participate more actively in the regional value chain. Rather than focusing solely on generic drug manufacturing, the country's pharmaceutical development strategy increasingly emphasizes biotechnology, advanced drug development, and high-value pharmaceutical production.

This direction is reflected in Vietnam's National Pharmaceutical Development Strategy to 2030 with a Vision to 2045 and the recently revised Law on Pharmacy. The country aims to meet approximately 80% of domestic pharmaceutical demand and achieve 70% of market value through domestically manufactured medicines by 2030, while prioritizing high-tech pharmaceuticals, biologics and biosimilars. These initiatives are expected to strengthen the competitiveness of Vietnam's pharmaceutical industry, reduce dependence on imported medicines and improve national healthcare resilience.

Speaking at the Vietnam Biopharmaceutical Industry Development Forum, jointly organized by Edelman and Vinapharm in May 2025, Deputy Minister of Health Do Xuan Tuyen emphasized that "Vietnam is gradually mastering biopharmaceutical manufacturing technologies, creating opportunities for patients to access innovative cancer therapies and treatments for chronic diseases at more affordable costs." He noted that developing domestic biopharmaceutical capabilities is not only a technological milestone but also a strategic solution to reduce healthcare costs, improve patient access, and strengthen Vietnam's pharmaceutical self-reliance.

Although significant progress has been made, Vietnam's biopharmaceutical industry remains at an early stage. The country currently has one operational biopharmaceutical manufacturing facility, while two additional facilities are under development. Most domestic R&D activities remain concentrated in late-stage clinical trials. To bridge the gap with regional leaders, the Ministry of Health is introducing investment incentives, promoting technology transfer, establishing specialized biopharmaceutical industrial parks in Thai Binh Province and a Medical High-Tech Park in Ho Chi Minh City, while accelerating digital transformation and AI adoption across the pharmaceutical sector.

These efforts demonstrate Vietnam's commitment to building the essential components of a competitive biopharmaceutical ecosystem—from supportive policies and research infrastructure to an increasingly attractive investment environment—providing a strong foundation for future innovation and regional collaboration.

Building upon these national initiatives, Vietnamese companies are also accelerating investments in biopharmaceutical research, technology transfer and manufacturing, gradually transforming policy ambitions into tangible industry development. Rather than remaining focused on generic medicines, many companies are expanding into higher-value segments such as biologics, biosimilars, CDMO services and international R&D partnerships.

Among domestic innovators, Nanogen has emerged as one of Vietnam's pioneers in biotechnology, developing monoclonal antibodies, recombinant proteins and biosimilars while expanding its Contract Development and Manufacturing Organization (CDMO) capabilities. These investments allow the company to participate in higher-value segments of the regional biopharmaceutical value chain beyond conventional pharmaceutical manufacturing.

In technology transfer, VNVC has established several strategic international partnerships. In addition to collaborating with Medsintez (Russia) to develop and manufacture recombinant insulin, recombinant albumin, semaglutide and other biologics for chronic diseases in Vietnam, VNVC has also signed cooperation agreements with the Gamaleya National Research Center for Epidemiology and Microbiology and Binnopharm Group to promote research, investment, technology transfer and commercialization of advanced biologics and next-generation vaccines, including mRNA cancer vaccines. These collaborations are expected to accelerate Vietnam's access to advanced biotechnology and strengthen domestic manufacturing capabilities.

Traditional pharmaceutical companies are also embracing innovation. According to Imexpharm, the pharmaceutical industry's value chain is shifting from manufacturing-driven competition toward technology, R&D and highly skilled human capital. This reflects a broader trend in which Vietnamese pharmaceutical companies are investing in biosimilars, clinical research, technology transfer and other high-value pharmaceutical segments.

Together, these developments demonstrate that Vietnam's biopharmaceutical ecosystem is evolving beyond policy planning into practical implementation. Although challenges remain compared with more mature biopharmaceutical hubs in Asia, growing collaboration between government agencies, domestic enterprises and international partners is positioning Vietnam to become a more significant player in the regional biopharmaceutical value chain.

Sources: McKinsey, Reuters, Suc Khoe & Doi Song (Health & Life Newspaper), Nanogen, VNVC, Imexpharm

Explore How Asia is Driving Biopharmaceutical Innovation at PHARMED & HEALTHCARE VIETNAM 2026

As biopharmaceuticals continue to become one of the key growth drivers of the global life sciences and healthcare industries, staying informed about emerging technologies, market trends and international collaboration opportunities has become increasingly important for pharmaceutical companies, research institutes, hospitals, distributors and healthcare organizations.

PHARMED & HEALTHCARE VIETNAM 2026 will bring together more than 600 exhibitors, brands and industry experts from Vietnam and around the world. Beyond showcasing the latest products and technologies, the exhibition serves as a dynamic business platform where industry stakeholders can explore emerging trends in biopharmaceuticals, biosimilars, pharmaceutical manufacturing technologies, digital transformation and healthcare innovation while expanding their professional networks and business opportunities.

The exhibition also provides an ideal platform for Vietnamese enterprises to identify strategic partners, establish international collaborations, access cutting-edge technologies and strengthen their role within Asia's rapidly growing biopharmaceutical ecosystem.

Exhibit Categories at PHARMED & HEALTHCARE VIETNAM 2026

Pharmaceuticals, Functional Foods

Diagnostic Imaging Equipment

Medical Devices and Instruments

Laboratory Equipment

Cleanroom and Environmental Treatment Equipment

Physiotherapy 

Orthopedic Technology 

Surgical Instruments

Dental and Ophthalmology Equipment 

Assistive Devices - Home Care Equipment 

Beauty Equipment and Product 

Smart Healthcare Equipment 

IT Solutions & Applications in Healthcare 

Healthcare Services

Products & Technology For Elderly Care & Support

Rehabilitation & Assistive 

Date: 22–24 September 2026

Venue: Saigon Exhibition and Convention Center (SECC), 799 Nguyen Van Linh Boulevard, Ho Chi Minh City, Vietnam

Register now to stay ahead of industry developments and expand your business network within the healthcare sector.

Exhibitor Registration: https://pharmed.vn/exhibitor/application-form

Visitor Registration: https://ers-vn.informa-info.com/pha2026?cid=FB

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