Pharmaceutical stocks now back on track in Vietnam

After a prolonged period of cautious trading and market volatility, pharmaceutical stocks in Vietnam are getting back on track driven by growing investors’ interest, with cash flow starting to diverge.

- By Duong Thi Mai Hoa

The stock prices of pharmaceutical companies continue to show strong divergence. Currently, capital flows are mainly concentrated in companies with sound financial foundations, good liquidity, and clear growth stories.

Since the beginning of the year, shares of Binh Dinh Pharmaceutical and Medical Equipment have increased by approximately 11 per cent, while Imexpharm and DHG Pharmaceutical have only fluctuated slightly around 2-3 per cent. This reflects the trend of investors prioritising businesses with the potential for faster profit growth rather than focusing solely on defensive factors.

The pharmaceutical sector still holds a significant advantage amidst strong profit-taking pressure in the overall market after a prolonged rally. Compared to many highly cyclical sectors such as real estate or securities, pharmaceutical stocks have a more stable profit base due to healthcare demand being less affected by economic fluctuations.

In the first quarter of 2026, pharmaceutical stocks attracted investment as many companies announce positive first-quarter 2026 earnings results. This is a good signal amidst the volatile stock market hovering around its peak.

Statistics from the financial reports of 33 pharmaceutical companies show that as many as 23 companies recorded profit growth in the first quarter of the year, with many maintaining double-digit growth rates.

Notably, this profit picture no longer depends entirely on revenue growth but also on cost optimisation, product restructuring, and expansion of the hospital distribution channel. This has helped many businesses maintain growth even when market purchasing power has not yet truly boomed.