Herbal/Traditional Products in Vietnam

PROSPECTS

Vietnamese continue to prefer herbal/traditional products over those with synthetic ingredients, for a number of reasons

Demand for herbal/traditional products continued to increase in 2019, especially within dietary supplements, cough, cold and hay fever remedies and sleep aids. People in Vietnam, like many people in other Asia Pacific countries, feel that herbal/traditional and/or natural remedies of all kinds are safer, healthier, more sustainable and have fewer possible side effects than products made with synthetic ingredients.

Companies see the aging population as fertile ground for dietary supplements

Herbal/traditional dietary supplements experienced the fastest value growth in 2019. Indeed, since the percentage of Vietnam’s aging population has started to rise, dietary supplements companies see this category as fertile ground.

New requirements for launching new herbal combinations lead some players to consider development products in other healthcare categories

Based on article 32 of the circular 15/2018/TT-BYT, a company wishing to offer a new combination of ingredients must provide a quantitative list of ingredients for each one contained in the composition or formula in order to register the product. However, it is not easy to provide the formulas for herbal/traditional ingredients as they are pretty complex and to do so takes a longer time.

COMPETITIVE LANDSCAPE

This highly fragmented category is characterised by many unbranded or unpackaged, traditional herbs/herbal combinations offered by small players

Herbal/traditional products comprises a highly fragmented competitive landscape, which includes many domestic players. Haugiang Pharmaceutical and Korea Ginseng are the leading players, and neither has a value share that exceeds 5%.

Local company launches a product to support people with diabetes and pre-diabetes

Following product trends set by major brands, local companies launched several herbal/traditional products at the end of the review period. One of them was Diabetna, a new dietary supplement launched by Ich Nhan Pharma in 2018.

Interest in herbal/traditional products prompts efforts to improve quality and to launch new products

As herbal/traditional products have become more attractive to both consumers and companies, more and more companies have begun to invest in improving product quality and launching new products aiming to achieve different effects. Haugiang Pharmaceutical, Traphaco and Nam Duoc Pharmaceutical have all been increasingly active in this arena.

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