According to estimates from Business Monitor International (BMI), the value of pharmaceutical consumption in Vietnam in 2016 may maintain a growth rate of 10.2 per cent, due to a young population and increasing incomes coupled with rising attention to healthcare. However, the value of locally made pharmaceuticals accounted for only 45 per cent of the total, with the majority being popular, cheap and simple medicines.
According a report on the top 10 most prestigious pharmaceutical companies in Vietnam in 2016 recently released Vietnam Report Joint Stock Company and VietNamNet online newspaper under the Ministry of Information and Communications, a majority of high value medicines are imported and distributed by foreign and joint venture companies. To develop the domestic pharmaceutical industry, in the future, local drug-makers will have to overcome tough difficulties in improving current product quality, enhancing investment and developing new products, among other things, with limited capital, human resources and capacity.
However, according to a survey of Vietnamese pharmaceutical companies on operating reality and growth prospects in 2016 - 2017, over 71 per cent estimate the sector’s growth rate at over 10 per cent and the rest expect lower growth. No respondent chose “unchanged” or “worse than in 2015” options, showing their optimism in the sector's prospects.
Clearly, Vietnamese pharmaceutical companies are always ready for every challenge. Several local firms have sought ways to cooperate with foreign companies to take advantage of available markets and distribution channels instead of directly competing, meanwhile, attracting capital, technologies and experience from major global drug-makers.
The survey also found that in addition to internal factors (personnel quality and corporate governance), prestige has been considered one of the important factors affecting production and distribution. 85.7 per cent of respondents believe that prestige has been the most important factor.
The survey of pharmacists and drug stores in Hanoi and Ho Chi Minh City by VNR in October 2016 showed that medicine quality and therapeutic effectiveness are the key factors to build up the prestige of pharmaceutical firms (78.9 per cent of respondents choose “medicine quality and good therapeutic effectiveness are the key factors to make the name of a drug company. The companies should undertake careful studies and production as medicines having direct impacts on human health and life. Marketing, sales, and distribution of customer care are seen as supporting factors to improve prestige.
Without doubt, to have sustainable success, pharmaceutical companies must have good reputation. Although they are at a weaker position than foreign rivals, local drugmakers are still struggling to find ways to bridge the gap, especially in technology and high-quality personnel, with the goal of regaining the advantage on the domestic market.
According to Vietnam Report, the 10 most prestigious pharmaceutical companies of Vietnam in 2016 are Traphaco Joint Stock Company, DHG Pharmaceutical Joint Stock Company, Binh Dinh Pharmaceutical and Medical Joint Stock Company, Mekophar Chemical Pharmaceutical Joint Stock Company, Imexpharm Pharmaceutical Corporation, Pymepharco Joint Stock Company, Nam Ha Pharmaceutical Joint Stock Company, Ha Tay Pharmaceutical Joint Stock Company, OPC Pharmaceutical Corporation and Danapha Pharmaceutical Joint Stock Company.
The five most prestigious pharmaceutical distributors in Vietnam in 2016 are Vimedimex Medi - Pharma Joint Stock Company, National Phytopharma Joint Stock Company, Hanoi Pharmaceutical and Medical Equipment Joint Stock Company, Khuong Duy Pharmaceutical Company Limited, and Danang Pharmaceutical and Medical Joint Stock Company.
The medium revenue of the Top 10 companies in 2015 was over VND2 trillion, led by Vimedimex, followed Phytopharma and DHG.
Quynh Anh
Vietnamese
