Vietnam's government issued Decree 90/2026, effective May 15, 2026, raising penalties for selling prescription drugs without a valid prescription, stocking products of unknown origin or non-compliant imports, and renting or lending pharmaceutical practice certificates to unqualified staff. For Long Chau, the pharmacy chain operated by our portfolio company FPT Retail (FRT), there is limited immediate compliance impact, but we see meaningful structural opportunities over the long term. While tighter enforcement puts pressure on small, independent outlets, it helps create a more formal market, directing demand toward well-organized businesses like Long Chau.
A Long Chau pharmacy and vaccination center in Ho Chi Minh City.
Vietnam has over 40,000 pharmacies, according to the Ministry of Health, the majority of which are independent, family-run businesses. Dispensing prescription drugs without a valid prescription has been a common, long-standing practice across the sector, regardless of store type. A number of smaller operators, especially those in less regulated areas, are also known for selling unregistered or gray-market imports and staffing pharmacies under borrowed practice certificates. Decree 90/2026 is partly a response to this structural non-compliance, and it follows a series of related enforcement measures over the past two years, including a nationwide crackdown on counterfeit supplements and stricter tax administration that raised costs for unregistered sellers.
Tighter regulation is expected to affect most Vietnamese pharmacy outlets, but the impact will likely be far greater on independent, traditional drug stores than on modern retail chains. Operators that cannot meet the new requirements face higher fines and license risks, while those reliant on certificate lending or gray-market products may see their operations disrupted. As these informal players reduce their product range or exit the market, demand will gradually shift to well-established names. Leading brands like FRT's Long Chau, with nationwide coverage and standardized operations, are better positioned to absorb that demand.
Long Chau is Vietnam's fastest-growing pharmacy chain by store count, operating 2,417 outlets and 223 vaccination centers at the end of 2025, compared to 1,943 outlets and 126 vaccination centers at the start of the year. In the same period, revenue from this chain reached over USD 1.3 billion (+36% year-on-year) and contributed 68% of FRT's consolidated revenue (which also operates an electronic retail chain, FPT Shop). A stricter operating environment and rising consumer awareness leave substantial room for Long Chau to gain market share from an informal sector that has long operated with limited regulatory oversight.
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