{"id":1321,"date":"2026-07-04T23:33:35","date_gmt":"2026-07-04T14:33:35","guid":{"rendered":"https:\/\/india-marketing.jp\/?post_type=vietnam-news&p=1321"},"modified":"2026-08-02T01:20:23","modified_gmt":"2026-08-01T16:20:23","slug":"lion-hungyen-pharma","status":"publish","type":"vietnam-news","link":"https:\/\/india-marketing.jp\/en\/vietnam-news\/lion-hungyen-pharma\/","title":{"rendered":"Lion builds a JPY 1.5 billion tablet plant: why a winner in liquids is stepping into solid dosage forms"},"content":{"rendered":"
\nThis article is based on what we could verify As of August 1, 2026<\/strong> This article is based on public materials and news reports from Vietnam. Vietnam's tax system, regulations, and administrative divisions change frequently, so information here may have been updated since publication. For actual business decisions, please confirm the latest details with the relevant government authorities or local experts as primary sources.\n<\/div>\n\n\n

Household goods major Lion is building a new solid-dosage-form (tablet and granule) plant in northern Hung Yen Province through its Vietnamese pharmaceutical subsidiary Merap Lion. The investment scale is approximately VND 250 billion (approximately 1.5 billion yen, at roughly 1 yen = 165 VND), with construction starting in October 2026 and operation expected to begin in the second half of 2030. In terms of amount alone, it is small compared to mega-investments in semiconductors or data centers, but this move clearly reflects a shift in Japanese manufacturers' investment motivation, from \"Vietnam as an export base\" to \"Vietnam as a consumer market.\" For companies aiming to capture Vietnam's domestic demand, it is a move worth referencing.<\/p>\n\n

1.5 billion yen in Hung Yen Province, expanding from liquid to solid dosage forms<\/h2>\n

According to Lion's announcement, the new plant will have a site area of 2,660 square meters and a total floor area of 7,172 square meters. It will produce solid dosage forms of prescription drugs and over-the-counter (OTC) medicines, namely tablets and granules. Construction is scheduled to start in October 2026, with operations to begin in the second half of 2030. With nearly four years of preparation before the plant becomes operational, this suggests a steady, long-term business expansion.<\/p>\n

The key point is that the products Merap Lion has excelled at until now differ from what it will produce this time. The company has built a nationwide sales network and brand strength with liquid products such as nasal sprays and eye drops. It is now newly building production facilities for a different dosage form, tablets and granules. This is a move to expand the product categories it handles by one more step, building on the distribution strength it already has.<\/p>\n\n

From a 36% stake in 2023 to full subsidiary status in 2025<\/h2>\n

Lion's pharmaceutical business in Vietnam has deepened in stages. It first acquired a 36.0% stake in local company Merap Holding in 2023, making it an equity-method affiliate, then made it a wholly owned subsidiary in 2025 and renamed it Merap Lion. The sequence is to get to know the local company through a minority stake, then move into full-scale investment once it has taken control of management.<\/p>\n

This sequence has proven effective. Making it a wholly owned subsidiary unified local decision-making and established a structure that can run sales, manufacturing, and development as one. This is precisely why Lion could make the capital investment decision to channel newly made solid dosage forms into the sales network held by its existing liquid-product brands. The background to this plant plan lies in the fact that Lion moved beyond a mere acquisition to invest in \"expanding the products it can make\" after the acquisition.<\/p>\n\n

Growth of Vietnam's pharmaceutical market and the gap in domestic production<\/h2>\n

The foundation for Lion's move into solid dosage forms lies in the structure of Vietnam's pharmaceutical market. The market size is estimated at around $8 billion as of 2025, with growth of around 7% per year expected to continue. Population growth and improved access to healthcare are pushing up demand.<\/p>\n

On the other hand, domestic production covers only about half of demand. According to figures from Vietnam's General Statistics Office, domestic production capacity meets only about 53% of demand, and even that is concentrated in simple generics and basic dosage forms. Advanced medicines rely on imports. In 2025, imports of pharmaceutical products reached approximately $4.3 billion, and raw materials are also heavily dependent on China. The Vietnamese government approved a national program in 2025 to strengthen domestic production toward 2030, providing a tailwind for locally made medicines.<\/p>\n\n\n
Metric<\/th>Figures (approximate)<\/th>Implication<\/th><\/tr><\/thead>\n
Market size (2025)<\/td>Approximately $8 billion<\/td>Growth of about 7% per year<\/td><\/tr>\n
Domestic production coverage rate<\/td>About 53%<\/td>The remaining half relies on imports<\/td><\/tr>\n
Pharmaceutical product import value (2025)<\/td>Approximately $4.3 billion<\/td>Significant room for local production<\/td><\/tr>\n
Lion's new plant investment<\/td>Approximately 1.5 billion yen<\/td>In-house production of solid dosage forms<\/td><\/tr>\n<\/tbody>\n<\/table>\n

Demand keeps growing, yet the dosage forms that can be made domestically remain limited. This gap gives foreign manufacturers room to move into local production. Lion's tablet plant is an investment aimed squarely at that gap.<\/p>\n\n

The turning tide in manufacturing FDI \u2014 from export base to deepening domestic demand<\/h2>\n

Japanese manufacturing investment into Vietnam has mainly focused on building bases to \"produce with cheap labor and export to the world.\" Large plants related to electronic components and semiconductors are typical examples, with most of the output shipped overseas.<\/p>\n

Lion's pharmaceutical plant has a different character. It is premised on delivering tablets and granules to patients within Vietnam, and the aim is to capture local domestic demand rather than export. It is precisely because Lion already has an \"exit,\" a sales network built through liquid products, that it can invest in local facilities to make the products flowing into that network. While export-oriented FDI seeks \"low-cost production locations,\" domestic-demand-oriented FDI seeks \"production close to where products sell.\" Lion's move shows a tilt toward the latter.<\/p>\n

In Vietnam, local production investment in consumer goods continues, and large-scale new plant construction is also progressing in the beverage and food sectors. PepsiCo's plan to invest $400 million to build two beverage and food plants<\/a> shares the same underlying idea: capturing growing domestic demand right where it is. Pharmaceuticals and food and beverage differ in regulation and commercial flow, but they overlap in the direction of betting on \"Vietnam as a consumer market.\"<\/p>\n\n

How it is being received locally and in the industry<\/h2>\n

The local reception is generally positive. Pharmaceutical distribution industry sources say that domestically producing solid dosage forms that have relied on imports would be meaningful for both supply stability and price competitiveness. With the government pursuing a policy of promoting domestically made medicines, foreign capital investing in domestic production aligns with the institutional tailwind.<\/p>\n

Sources involved in supporting Japanese companies entering Vietnam praise the phased approach, from a minority stake to full subsidiary status and then capital investment. Rather than taking on a local company wholesale from the start, the approach of gaining control of management before expanding the products it can make is seen as a sound one in the heavily regulated pharmaceutical sector.<\/p>\n

On the other hand, there are also cautious views. Operations are not scheduled to begin until the second half of 2030, a long way off, and regulations, GMP certification requirements, and the raw material sourcing environment could change in the meantime. While the length of the preparation period reflects thoroughness, some point out that the question is whether Lion can keep adapting to changes in the market.<\/p>\n\n

Implications for Japanese companies considering entering Vietnam<\/h2>\n

The points that companies entering Vietnam with a domestic-demand approach can draw from Lion's move are concrete. First, acquiring a local company largely means \"buying a sales channel.\" Merap Lion's value lies in its liquid-product brands and nationwide distribution network, and Lion secured that exit before moving on to invest in expanding the products flowing through it. Companies considering entry should first determine whether they can secure \"how to deliver\" before deciding \"what to sell\" locally.<\/p>\n

Second, a phased deepening of involvement starting from a minority stake is effective in regulated industries. Rather than aiming for 100% ownership from the start, the approach is to first get to know the local operation as an equity-method affiliate, confirm the prospects, and then proceed to full subsidiary status and capital investment. The more a field is subject to high approval and certification hurdles, as with pharmaceuticals, the more this sequence holds down risk.<\/p>\n

Third is the idea of reframing the investment goal, from \"cutting export costs\" to \"getting closer to domestic demand.\" The acquisition of the top stationery maker to capture local share \u2014Kokuyo's acquisition of Thien Long<\/a> also belongs to the same lineage, in that it brings a local company on board in order to sell locally. If a company is going after Vietnam's growing population and rising incomes, the destination of its production shifts from the export port to the local shelf.<\/p>\n\n

Ripple effects on the market \u2014 Japanese manufacturers' investment motivation is changing<\/h2>\n

As these moves accumulate, the center of gravity of Japanese investment heading into Vietnam is shifting. Export-oriented mega-investments such as in semiconductors and electronic components have symbolized Vietnam as \"a place to make things.\"The case of Meiko breaking ground on a $500 million electronic circuit plant in Phu Tho Province<\/a> is a prime example of that. As domestic-demand-oriented investment in consumer goods and pharmaceuticals is added to this, the purpose of investment splits into two layers.<\/p>\n

As domestic-demand-oriented investment increases, the capabilities required of entering companies also change. It is not just the ability to produce cheaply and in bulk, but also the ability to bring together local sales channels, brands, and regulatory response. Lion's combination of acquisition and capital investment is a move to assemble both of these wheels in-house. Going forward, Japanese manufacturers' investment in Vietnam is likely to increasingly take the form not just of \"building a plant\" but of \"securing the entire mechanism for selling.\"<\/p>\n\n

Practical notes<\/h2>\n

Here are the practical points that companies considering local production of pharmaceuticals and consumer goods in Vietnam should keep in mind.<\/p>\n