Vietnam’s pharma sector advancing with focus on ESG and innovation

Jul 21st at 16:36

21-07-2025 16:36:21+07:00

Vietnam’s pharmaceutical sector is advancing through a combination of scientific innovation, regulatory responsibility, and efforts to build a sustainable healthcare system.

As a sector closely tied to public health and wellbeing, the pharmaceutical industry’s adoption of environmental, social, and governance (ESG) standards is becoming a core operating principle rather than a secondary goal. In Vietnam, the industry is gradually transitioning from a supporting role to a more central position in the country’s economic and healthcare strategy.

Vietnam’s Pharmaceutical Development Strategy through 2030, with a vision to 2045, articulates the goal of enhancing domestic capacity and transforming Vietnam into a regional pharmaceutical manufacturing hub. Achieving this vision requires significant investment in advanced technologies and global standards while embracing ESG principles, across environmental stewardship, social impact, and governance excellence.

Among the top examples is Imexpharm, recently named among the Top 50 Corporate Sustainability Awards (CSA 2025) – organised by Nhip Cau Dau Tu on July 15. The recognition was assessed by an expert panel including representatives from respected organisations such as HSBC Vietnam, PwC Vietnam, Schneider Electric, the Institute for Circular Economy Development, Talentnet, and VinaCapital.

Vietnam’s pharma sector advancing with focus on ESG and innovation

Nguyen Quoc Huy, deputy head of Communications and Branding Department, Imexpharm with the CSA 2025 award. Photo: Imexpharm

Imexpharm has integrated ESG principles into its operations, from leadership to daily practice. This approach has contributed to strong performance across various ESG evaluation criteria, including sustainability strategy, social and environmental impact, and long-term community engagement.

Established in 1977 with the vision of delivering "Trusted Quality – European Standards," Imexpharm has consistently aligned its business with this goal through investments in technology and governance. The company allocates up to 5 per cent of its annual revenue to research and development. In 2024, it introduced 24 new products, including advanced antibiotics and injectable formulations. Imexpharm is also expanding into specialised therapeutic areas such as cardiovascular disease, diabetes, neurology, and gastroenterology, reflecting a broader focus on high-tech, knowledge-based pharmaceuticals.

As Vietnam’s pharmaceutical sector enters a period of accelerated growth, ESG awareness is becoming increasingly prominent, especially following the country’s net-zero commitments. ESG is by no means an easy path. It demands sustained investment, a transformation in governance thinking, and agility in the face of emerging challenges.

Imexpharm continues to pursue its ESG commitments as part of a long-term strategy to create value for both society and the healthcare sector. Operating a closed-loop manufacturing model with stringent controls across the entire production lifecycle, from raw material sourcing to finished products, Imexpharm prioritises clean, CEP-compliant inputs and employs enzymatic technologies in its antibiotic production.

The company is also focused on renewable energy development and effective waste management. All of Imexpharm’s green factories are equipped with ISO 14001:2015-certified wastewater systems, as well as Cleaning In Place, Sterilisation In Place, and HVAC systems for comprehensive control of temperature, humidity, and airflow.

The IMP4 factory, which has been recognised in forrmer Binh Duong province’s Green Book for its environmental performance. Photo: Imexpharm

Alongside green manufacturing, Imexpharm continues to invest in production capacity, currently operating 12 EU-GMP-certified production lines. As of now, the company holds 28 EU Marketing Authorisations for 11 products.

Tran Thi Dao, general director of Imexpharm, said, "ESG compliance is undeniably challenging. But at its core, it is not simply a checklist, it is a quiet yet transformative force shaping a better future. We chose this path early, with full conviction. To us, ESG is more than a responsibility – it is the foundation for building a healthier, more sustainable world for generations to come."

Beyond green production, Imexpharm proudly contributes to the VNSI20 sustainable development index, applies International Financial Reporting Standards, and has implemented SAP S/4HANA Cloud ERP to enhance transparency and modernise operations.

Imexpharm is also an active participant in healthcare programmes, scholarships, education, and environmental initiatives. In 2024, the company contributed VND755 million ($28,863) in scholarships and educational support, distributed free medicine, and donated 500 trees to the Dalat Youth Union.