Vietnam - A Key Growth Market for Fresenius

 

It has been a pleasure and breathtaking to witness the development of Vietnam in the recent past. Over the past decade, the country’s economic growth has been among the highest in the world, achieving average annual growth rates of 7 per cent per capita. Gross domestic product has tripled over the past 15 years.  And even though growth rates have come down slightly in the wake of the global financial and economic crisis, Vietnam’s economy successfully continues on its growth path. The country has been and still is developing rapidly.  It is continuing to make its way to the economic forefront of Southeast Asia.

 

One driver of this impressive development is the increase of foreign direct investment.  It does not come as a surprise that foreign direct investments have nearly tripled since Vietnam’s admission into the World Trade Organization in 2007.

 

Vietnam is one of our key growth markets and will continue to play a significant role in our Asia Pacific strategy.  As a result of the country’s strong growth and overall momentum, it was logical to build our own presence here in Vietnam.  Moreover, it is my strong personal belief, that in order to fully benefit from the Vietnamese market, a company needs to become a local insider.  That can only be achieved by a strong local presence, not merely through imports.

 

The health care system in Vietnam is developing at a rapid pace, so there is a constantly increasing demand for our products here. With a population of close to 90 million and on the back of its outstanding development, Vietnam is a highly attractive partner for countries and companies alike. Our new plant in Quy Nhon will help us meet this demand and allow us to make a significant contribution to high quality yet affordable health care in the region. The processing for special medications is complicated and expensive, while this kind of product often exceeds the spending capacity of many people, so the investment calculation in this place is not to be effective in Vietnam, in terms of business.

 

In our Group’s history of almost 100 years, Fresenius has always put strong emphasis on the highest possible quality of its products to the benefit of our patients.  We have emphasised local market presence and sustainable growth. We are committed to live up to our responsibilities as a corporate partner and a good corporate citizen of Vietnam.  We take pride in contributing our share to the continuous development and progress of the Vietnamese healthcare market. The prices of our products are stable and in line with Vietnam as well as countries in the region.

 

Fresenius has not only invested into building Vietnam’s most advanced pharmaceutical factory for infusions and injections, but has committed to the sponsoring of a significant Community Investment.  Since its inauguration in September 2008, Fresenius has supported the Vietnamese-German-University in Ho Chi Minh City, both financially and academically.  The humble contribution of Fresenius to the university might be appreciated as a sign of good corporate citizenship.  But besides that, the Vietnamese-German-University itself is a wonderful example of the friendship between Vietnam and Germany.

 

Investing in new production technologies, as well as the sponsoring of Community Investments, creates a win-win-situation for both the local communities and our company.  In this particular instance, patients in Vietnam benefit from improved healthcare standards and products. Furthermore, Fresenius is proud to be able to contribute to the education of Vietnamese students.  Lastly, Fresenius can benefit from a strong presence in this growing healthcare market.