Foreign Ownership Dominates Vietnam's Top Pharma Stocks: DHG, IMP, DHT

Overview

Foreign ownership has become the defining feature of Vietnam’s largest pharmaceutical companies. Taisho Pharmaceutical (Japan) controls Dược Hậu Giang (DHG), Livzon Pharmaceutical Group (China) recently acquired 67.87% of Imexpharm (IMP), and ASKA Pharmaceutical (Japan) holds approximately 40% of Dược Hà Tây (DHT). The sector’s growth trajectory—from $8-9 billion today to a projected $16 billion by 2032—continues to attract international strategic buyers.

Key Facts

• Taisho Pharmaceutical (Japan) has held over 51% of DHG since 2019.
• Livzon Pharmaceutical Group (China), via Lian SGP, completed the purchase of 67.87% of IMP in early May 2026 for approximately VND 6,000 billion.
• ASKA Pharmaceutical (Japan) has increased its stake in DHT to nearly 40%.
• Abbott Laboratories (US) holds 51.7% of Domesco (DMC).
• STADA Arzneimittel (Germany) acquired 99.5% of Pymepharco (PME) in 2021 and subsequently delisted it.
• A Korean investment consortium (Daewoong and Mirae Asset) holds 40.12% of Traphaco (TRA).
• Vietnam’s pharmaceutical market is projected to grow from $8-9 billion (2024-2025) to $16 billion by 2032.

What Happened

A recent article highlights the pervasive foreign ownership in Vietnam’s largest pharmaceutical companies. The three largest by market capitalization—DHG (VND 12,709 billion), IMP (VND 7,215 billion), and DHT (VND 6,340 billion)—all have foreign investors as controlling or largest shareholders. Taisho has maintained majority control of DHG since 2019. Livzon’s acquisition of 67.87% of IMP in early May 2026 was valued at around VND 6,000 billion. ASKA has steadily built its stake in DHT to approximately 40%.

Other notable foreign holdings include Abbott’s 51.7% stake in DMC and the Korean consortium’s 40.12% stake in TRA. STADA’s 2021 acquisition of PME led to its delisting. The article notes that international M&A targets are primarily motivated by access to EU-GMP certified production lines and domestic distribution networks. For IMP, its 12 EU-GMP production lines were a key asset.

Market Context

DHG closed at VND 97,200 on May 12, 2026, with thin volume of 21,800 shares. IMP closed flat at VND 46,850 on the same day. DHT edged down 1.43% to VND 69,000. All three are listed on HOSE. The sector has seen steady foreign buying, with foreign room often near limits. The broader VN-Index has been range-bound, but pharma stocks have outperformed due to M&A premiums and defensive characteristics.

Strategic Significance

The consolidation of Vietnam’s pharma sector under foreign control reflects a structural shift: international players are securing local manufacturing and distribution platforms to capture growth from an aging population and rising healthcare spending. The National Competition Commission’s conditions on Livzon’s IMP acquisition—requiring non-discriminatory supply of raw materials and technology transfer—indicate regulatory oversight but not resistance. For investors, the trend reduces the number of independent local players, potentially increasing pricing power for the remaining listed firms like TRA, which may become a takeover target.

What to Watch

• Further stake increases by ASKA in DHT, potentially triggering a mandatory general offer.
• Any regulatory actions on the Korean consortium’s stake in TRA, which approaches the 50% threshold.
• Q2 2026 earnings reports for DHG, IMP, and DHT to gauge post-acquisition operational changes.
• New M&A announcements in the pharma sector, especially mid-cap firms with EU-GMP facilities.
• Updates on the National Competition Commission’s conditions for Livzon-IMP and their impact on market competition.