Vietnam was considered one of the countries with high pharmaceutical growth (IQVIA, 2014). With expectations of market development, foreign investment in Vietnamese pharmaceutical firms tends to increase rapidly in recent years. This study was conducted to analyze the relationship between foreign ownership proportion and total factor productivity of pharmaceutical firms in Vietnam. The analysis results have shown that the proportion of foreign ownership had a negative impact on the total factor productivity of pharmaceutical firms in Vietnam in the period of 2014 - 2017. Besides, human resource quality and manager's characteristics positively affect the overall factor productivity. Several solutions were proposed to utilize foreign investment in improving total factor productivity of pharmaceutical firms in Vietnam.