Capturing the Southeast Asian market: Chinese domestic vaccine exports surge under new model

Chinese domestic vaccines are capturing multiple key markets in Southeast Asia.

On April 13, 2026, Xinhua News Agency reported from Jakarta that Taruna Ikrar, Head of BPOM, publicly stated that Indonesia is continuously deepening its cooperation with China in the vaccine sector to expand HPV vaccine coverage and accelerate the development of local R&D and production capacity.

This news reflects the strong momentum of Chinese domestic HPV vaccines in going global. Earlier, on April 7, Wantai BioPharm announced that the company, together with its partner in Thailand, is promoting the local production of its nine-valent HPV vaccine in Thailand. The collaboration adopts a bulk-fill and packaging model, under which Wantai BioPharm supplies the bulk vaccine to Thailand according to the agreement, and the Thai partner performs filling, packaging, testing, and lot release.

This means that in Thailand and Indonesia, two major markets in Southeast Asia, Chinese domestic vaccine manufacturers have already established bridgeheads for global expansion, potentially ushering in a new era for vaccine exports. Data confirm this trend: according to statistics released by the China Chamber of Commerce for Import and Export of Medicines and Health Products, in 2025, China exported vaccines to 85 markets worldwide, with total export value reaching USD 324 million, a year-on-year increase of 52.63%. Pakistan, Brazil, and Indonesia were the top three export destinations.

Vaccines are not ordinary commodities. As a vital component of public health systems, they are subject to stringent regulation, making export exceptionally challenging. How have Chinese domestic vaccine manufacturers overcome these obstacles to open up key markets overseas?

"HPV (human papillomavirus) vaccines are very important for Indonesian women because they protect us from cervical cancer," Ita, an Indonesian woman, told Xinhua News Agency with conviction. However, the reality of high vaccine prices and insufficient supply remains a barrier for many families. "If the vaccines can be produced locally and become more affordable, we as parents will not only have easier access but will also be more willing to recommend them to others," said Ita, a mother herself.

Ita's sentiment is not an isolated case. The Southeast Asian market faces a significant vaccine gap.

The vaccine market in Southeast Asia is currently in a golden period of rapid growth and structural upgrading. Benefiting from the demographic dividend and increased government spending on public health, this market of nearly 700 million people is becoming an important market for global vaccine companies. By market segment, countries such as Indonesia (270 million people), the Philippines (110 million people), and Vietnam (nearly 100 million people) have large populations and high growth rates.

The vaccine market size is highly correlated with population size. Despite the huge demand, the supply capacity in the Southeast Asian market remains insufficient.

Qi Fei, Executive Director of Legend Capital, has extensive hands-on experience in the Southeast Asian healthcare market. He told VCBeat: "The local R&D and production capabilities of the Southeast Asian vaccine market are relatively weak. Most of the vaccine supply in Southeast Asia is provided through assistance from Gavi, the Vaccine Alliance, initiated by organizations such as WHO and UNICEF. Although some multinational pharmaceutical companies have set up branches in Southeast Asia, their pricing is high and accessibility is low. There is a significant gap in the supply of innovative vaccine products."

For the Indonesian market, what does the localization of HPV vaccine technology by Chinese companies mean? First, if local production is achieved in Indonesia, it will greatly alleviate the supply-demand contradiction and build a health defense line against cervical cancer for more women. Second, local production will significantly reduce cold chain transportation costs and import tariffs. Coupled with the inherent cost advantages of Chinese vaccine companies, the final vaccination cost is expected to decrease substantially.

Third, for Chinese vaccines, Indonesia is not the end. The total population of the ASEAN market exceeds 660 million, and HPV vaccination rates are generally low. Once local HPV vaccine production capacity is established in Indonesia, the country will become a supply hub for the entire Southeast Asian region. This market is attractive enough. Since MSD's nine-valent HPV vaccine was approved in China in 2018, approximately 33 million people have been vaccinated in China, leaving significant untapped potential in the Southeast Asian market.

As vaccines are an important component of basic public health, governments around the world place a high priority on them.

Despite the huge overseas demand, vaccines are a product category that is extremely difficult to export. This explains why, in terms of export market size, the vaccine export value of USD 324 million is far lower than the export scale of medical devices and pharmaceuticals.

Qi Fei noted: "Vaccines are strictly regulated, so the first challenge in going global is overcoming extremely high compliance barriers. For vaccines produced in large quantities, local governments often require the establishment of local manufacturing facilities to enhance national healthcare security and ensure stable supply. On the commercialization front, whether it involves inclusion in national immunization programs or the private market, channel barriers are very high. The difficulties in market access, production, and commercialization make it impossible for vaccine exports to succeed through simple trade models. Finding professional and reliable local partners is extremely difficult. Local companies with a full industry chain layout and professional expertise are very scarce."

Constrained by supply chain bottlenecks, urgent market demand, and stringent regulatory policies, vaccine exports can neither replicate the licensing deal model (i.e., out-licensing or in-licensing) in the biopharmaceutical field nor easily follow the agency trading model of the medical device industry. The cooperation paradigm of "market in exchange for technology" has thus become the way to break through supply bottlenecks.

This model has previously helped Chinese domestic vaccine manufacturers secure large orders. In November 2025, Sinovac Biotech signed two PDP (Product Development Partnership) projects with the Ministério da Saúde, becoming the first Chinese vaccine company to win such projects. Sinovac will collaborate with local Brazilian partners Tecpar Institute and Eurofarma to build a vaccine industry platform, helping Brazil enhance its local vaccine production capacity. Over the next 10 years, Sinovac will supply Brazil with a total of approximately 60 million doses of varicella (chickenpox) vaccine and rabies vaccine, with a total value exceeding USD 700 million. This is the longest-term and largest-value international order ever obtained by a Chinese vaccine company to date.

Technology transfer for local production, combined with a deep commercialization cooperation model, has become the mainstream approach for Chinese domestic vaccines to enter Southeast Asian markets. This involves technology sharing and production capacity collaboration with local partners.

In this context, finding reliable local partners has become critical. ETANA, an Indonesian biotechnology company, has previously undertaken technology transfer from Innovent Biologics and Walvax for bevacizumab and the PCV13 vaccine, completed local large-scale production, and obtained approval for market authorization from BPOM. According to the Xinhua News Agency report, ETANA will subsequently undertake local production of Chinese domestic HPV vaccines in Indonesia.

Founded in 2014, ETANA focuses on the research, development, manufacturing, and distribution of high-quality, innovative, and affordable biological drugs for the Indonesian and Southeast Asian markets, addressing the needs of patients in Southeast Asia for high-quality medical products and treatment solutions. Through years of dedication and accumulation in the biopharmaceutical field, ETANA has built a rich product pipeline covering therapeutic areas such as metabolic diseases, autoimmune diseases, infectious disease vaccines, and oncology. ETANA is committed to enhancing Indonesia's local biopharmaceutical manufacturing capabilities and is currently establishing production systems for monoclonal antibodies, advanced vaccines, and other biopharmaceuticals.

Sinovac Biotech recently disclosed that it has signed a strategic cooperation memorandum of understanding with Bio Farma, an Indonesian state-owned pharmaceutical company, in Beijing. The two parties will engage in deep collaboration in areas such as vaccine product distribution, local production, and joint research and development, advancing bilateral public health cooperation to a higher level.

Qi Fei noted: "Against the backdrop of intensifying competition in the Chinese domestic market, going global has become a necessity for domestic vaccines. In countries with large populations, the 'technology in exchange for market' model aligns with local governments' demands for technology localization and production capacity protection. This model goes beyond simple trade exports, enabling the establishment of long-term, stable market positions while also enhancing local public health service capabilities."

Taruna Ikrar, Head of BPOM, also told Xinhua News Agency in an interview that, in his view, cooperation with China in the biopharmaceutical sector represents a "strategic leap" for Indonesia. Such cooperation is not merely about technology introduction but also about capacity building, allowing Indonesia to align with international advanced standards in a relatively short period and accelerating its transition from "import dependence" to "independent manufacturing." "Collaboration with Chinese partners has enabled Indonesia to bypass the early exploratory phase and directly enter a high-level development trajectory," he said.

Vaccines have never been merely commercial products. The global expansion of Chinese vaccine technology inevitably faces multiple challenges, including regulatory compliance, intellectual property rights, and international politics. The deep collaboration with local Southeast Asian companies has brought about a new paradigm for vaccine exports, marking a milestone in the value progression of Chinese vaccine globalization. It signifies that China's biopharmaceutical industry is evolving from the preliminary stage of "selling products" to a system exporter of "technology, production capacity, and standards" — playing the role of an "enabler" rather than a "competitor" in global public health governance.