Vietnam Financial Assistance Programs Market Analysis

Vietnam Financial Assistance Programs Market Executive Summary

The Vietnam Financial Assistance Programs Market is at around $141.7 Mn in 2023 and is projected to reach $373 Mn in 2030, exhibiting a CAGR of 14.83% during the forecast period 2023-2030.

The goal of pharmaceutical companies' patient financial assistance is to reduce or eliminate out-of-pocket expenses as a barrier to prescription selection, allowing patients to continue taking name-brand prescriptions for extended periods of time. Some of the often-used financial help programs under patient assistance programs include co-pay assistance, free drug trials, bridge programs, sliding scale programs, coupons, bulk purchasing programs, etc.The formulary, which is a list of recommended and nonpreferred prescription medicines, is used by pharmacy benefit managers (PBMs) or health plans to calculate the out-of-pocket drug cost sharing for their clients. The efficacy, cost, and amount of the manufacturer's rebate that the payer receives for selecting a drug above its rivals determine a drug's preferred status. Generally speaking, patient cost sharing for preferred brand and generic medications is lower than that of nonpreferred brand medications. Patient cost sharing has gone up along with prescription prices, which has led to some patients stretching, skipping, or stopping too-expensive medication. Pharmaceutical companies frequently try to lessen these impacts by offering or sponsoring different kinds of financial assistance to patients.

There is an increasing prevalence of chronic diseases in Vietnam, in 2022, there were around 197 deaths in Vietnam from major cardiovascular diseases per 100,000 population and 3.7 Mn people were living with diagnosed diabetes out of which 10.1% were males and 8.7% were females. Therefore, the market is predominately driven by factors such as rising drug cost and growing prevalence of chronic conditions whereas complex insurance landscape, stringent regulatory environment and budgetary concerns restrict the market.

Pharmaceutical companies providing financial assistance to patient are such as Merck, GSK, Pfizer, Johnson & Johnson, Novartis among others.

Market Dynamics

Market Drivers

Rising drug costs: Specialty and innovative drugs, particularly for rare diseases or complex conditions, are becoming increasingly expensive. This trend leads to higher out-of-pocket costs for patients, even those with insurance. As a result, more patients need financial assistance to access their prescribed medications.

Chronic disease prevalence: There is an increasing prevalence of chronic diseases in Vietnam, in 2022, there were around 197 deaths in Vietnam from major cardiovascular diseases per 100,000 population and 3.7 Mn people were living with diagnosed diabetes out of which 10.1% were males and 8.7% were females. The increasing number of patients with chronic conditions necessitates long-term, often expensive treatments. This creates a sustained need for financial assistance over extended periods. Chronic disease management is a priority in healthcare, driving support for assistance programs.

Market Restraints

Regulatory constraints: Anti-kickback laws restrict how pharmaceutical companies can set up their assistance programs to avoid improper influence on prescribing. These regulations complicate program design and increase compliance costs and operational complexity for administrators.

Insurance pushback: Some insurers view assistance programs as threats to their formulary strategies and cost-control efforts. They may exclude copay assistance from deductible calculations through copay accumulator programs, potentially reducing the programs' effectiveness for some patients

Budgetary pressures: Pharmaceutical companies must balance the expense of assistance programs with maintaining profit margins. Economic downturns or shifts in company strategy might lead to reduced funding, resulting in more selective or limited assistance offerings.

Regulatory Landscape and Reimbursement Scenario

The regulatory body responsible for the pharmaceutical industry in Vietnam is the Ministry of Health (MOH), which is organized into several divisions, including the Drug Administration of Vietnam (DAV) and the Department of Medical Equipment and Construction (DMEC). The DAV is responsible for the overall management of pharmaceutical products, including their import, export, and manufacturing, while the DMEC monitors the manufacturing, registration, and trading of medical devices. The management of medical devices is regulated by the Ministry of Health through ministerial circulars and decrees.

The reimbursement system in Vietnam is managed by the Health Insurance Fund, which covers medicines, medical services, and health procedures that are specifically indicated by the government. Patients who undergo health examinations at healthcare establishments that are eligible for registration of initial health examination and treatment are covered for the examination and treatment expenses with the appropriate ratio. However, if a patient uses the services of a healthcare establishment that is not in the respective eligibility list, their expenses are not covered by the Health Insurance Fund.

The government has set a target for the pharmaceutical industry to develop and produce original brand-name drugs, as well as vaccines and patent drugs. The industry is expected to grow significantly, driven by increasing economic growth, rising income per capita, and an aging population.

The regulatory body and reimbursement system in Vietnam are designed to ensure the safety and efficacy of drugs and medical devices, while also promoting the development of the pharmaceutical industry and providing access to healthcare services for patients.

Competitive Landscape

Key Players

Here are some of the major key players in the Vietnam Financial Assistance Programs Market:

• Roche
• Pfizer
• Bayer
• Sanofi
• Novartis
• Merck
• GSK
• Johnson & Johnson
• AbbVie
• AstraZeneca