News Oct 25, 2016

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On October 25 Vietnam Report of VietNamNet Newspaper - the Ministry of Information and Communications - officially announced the Top 10 Prestigious Pharmaceutical Companies of Vietnam in 2016.

The list was made by Vietnam Report, based on scientific and objective principles. Pharmaceutical companies in Vietnam were rated based on three criteria: financial capacity shown on the financial statements audited in the latest year (total revenue, after tax profit...); media credibility, which is evaluated by the Media Coding method - coding articles about Vietnamese pharmaceutical companies on the media; surveys conducted with the participation of pharmacists and pharmacies on medicine quality and status of medicine distribution.

The survey also considered the results of production and business activities, revenue growth and profitability, capacity self-assessment in 2016 of pharmaceutical companies in the first ten months of 2016. This was an additional factor to determine the company's position in the pharmaceutical industry.

Accordingly, the ten companies named in this list have a stable financial capacity, experience and growth potential, and they are also appreciated for high quality products and excellent distribution services in 2015-2016.

TÊN CÔNG TY

TÊN TIẾNG ANH
CÔNG TY CP TRAPHACO TRAPHACO JOINT STOCK COMPANY
CÔNG TY CP DƯỢC HẬU GIANG DHG PHARMACEUTICAL JOINT STOCK COMPANY
CÔNG TY CP DƯỢC - TRANG THIẾT BỊ Y TẾ BÌNH ĐỊNH BINH DINH PHARMACEUTICAL AND MEDICAL EQUIPMENT JOINT STOCK COMPANY
CÔNG TY CP HOÁ – DƯỢC PHẨM MEKOPHAR MEKOPHAR CHEMICAL PHARMACEUTICAL JOINT STOCK COMPANY
CÔNG TY CP DƯỢC PHẨM IMEXPHARM IMEXPHARM PHARMACEUTICAL JOINT STOCK COMPANY
CÔNG TY CP PYMEPHARCO PYMEPHARCO JOINT STOCK COMPANY
CÔNG TY CP DƯỢC PHẨM NAM HÀ NAM HA PHARMACEUTICAL JOINT STOCK COMPANY
CÔNG TY CP DƯỢC PHẨM HÀ TÂY HA TAY PHARMACEUTICAL JOINT STOCK COMPANY
CÔNG TY CP DƯỢC PHẨM OPC OPC PHARMACEUTICAL JOINT STOCK COMPANY
CÔNG TY CP DƯỢC DANAPHA DANAPHA PHARMACEUTICAL JOINT STOCK COMPANY

Top 10 prestigious pharmaceutical companies in 2016. Source: Vietnam Report

TÊN CÔNG TY TÊN TIẾNG ANH
CÔNG TY CP Y DƯỢC PHẨM VIMEDIMEX VIMEDIMEX MEDI - PHARMA JOINT STOCK COMPANY
CÔNG TY CP DƯỢC LIỆU TRUNG ƯƠNG 2 NATIONAL PHYTOPHARMA JOINT STOCK COMPANY
CÔNG TY CP DƯỢC PHẨM THIẾT BỊ Y TẾ HÀ NỘI HAPHARCO JOINT STOCK COMPANY
CÔNG TY TNHH DƯỢC PHẨM KHƯƠNG DUY KHUONG DUY PHARM COMPANY LIMITED

CÔNG TY CP DƯỢC - THIẾT BỊ Y TẾ ĐÀ NẴNG

DA NANG PHARMACEUTICAL – MEDICAL EQUIPMENT JOINT STOCK COMPANY

Top 5 prestigious pharmaceutical distributors in 2016. Source: Vietnam Report

Some notable features of the top 10 prestigious pharmaceutical companies of Vietnam in 2016

According to financial statistics, in 2015 the average revenue of the Top 10 was estimated at of over VND2,000 billion. Taking the first position is Vimedimex, followed by Phytopharma and Hau Giang Pharma.

In terms of media aspect, the data coding results of pharmaceutical companies collected from the five newspapers, including Health and Life, Public Health, Vnexpress, VietnamNet and Vnplus, during the period from January 2015 through October 2016. The result shows that Traphaco and Hau Giang Pharma were the two with the “strongest” PR activities.

Regarding the survey with pharmacists and pharmacies, 37.8% of the survey participants (the highest rate) chose Traphaco when they were asked "If you could choose only one best pharmaceutical company of Vietnam, which one that you pick?"

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The total points for Top 10 prestigious pharmaceutical companies of Vietnam in 2016. (Source: Vietnam Report)

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Total points for Top 5 prestigious pharmaceutical distributors of Vietnam in 2016. (Source: Vietnam Report)

The potential growth of the pharmaceutical industry in 2016 - 2017

According to BMI, the value of medicine consumption in Vietnam in 2016 maintains the growth rate of about 10.2% thanks to a young population structure, the increasing income and increasing interest in health issues.

However, the value of domestic production accounts for less than 45% of the total and domestic products are mainly the simple, popular, and cheap medicines. The special drugs of high prices are mostly imported and distributed by joint venture or foreign firms. To develop the domestic pharmaceutical industry, local businesses will have to face with a big problem: improving the quality of existing products, increasing investment in research and production of specialized medicines while their capital, capacity and human resources are very limited.

According to a survey of Vietnamese pharmaceutical enterprises about their operation and the growth potential of the pharmaceutical industry in 2016 - 2017, more than 71% of businesses were predicted to obtain a growth rate of over 10% and the remaining with a growth rate of below 10%. No firm chose "unchanged" or "worse than in 2015" for business prospects in 2016 – 2017. These showed the optimism of pharmaceutical businesses at present.

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Growth prospects of the pharmaceutical industry in 2016 - 2017. (Source: Vietnam Report)

Clearly, pharmaceutical enterprises in Vietnam are always ready to face challenges. In fact, many of them are clever to choose cooperation rather than directly competing with foreign firms to both take advantage of market dominance and existing distribution channels while attracting capital, technology and learning from the big pharmaceutical companies in the world.

Building credibility: Pharmaceutical quality is always a key factor

Also according to the survey of pharmaceutical businesses, in addition to internal resources (quality of human resources and corporate governance), the prestige is considered an important factor affecting the production and distribution of pharmaceuticals, with 85.7% of pharmaceutical companies participating in the survey saying that this factor has "great influence" and 14.3% saying that this factor has "relative influence".

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Factors and their influence on production/distribution of pharmaceuticals in Vietnam. (Source: Vietnam Report)

The survey by Vietnam Report with pharmacists and pharmacies in Hanoi and HCM City in October 2016 shows that, in order to build credibility for pharmaceutical firms, the quality of medicines and the efficacy of treatment must be placed on top (78.9% of survey participants chose "medicine quality and effective treatment" as the most important factor to build the reputation of a pharmaceutical company).

As a specific product, medicine has a direct impact on the health and life of humans, so production of this product requires companies to have remarkable investment and caution in the stage of product research and development. Other factors such as marketing, sales, distribution and customer service ... are considered complementary elements to help enhance the reputation of businesses.

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The factors that make the reputation of pharmaceutical companies. (Source: Vietnam Report)

It is clear that, to achieve sustainable success, pharmaceutical firms must rely on reputation. Although they are now weaker than foreign competitors, local pharmaceutical companies are still struggling to find ways to bridge the gap, especially in technology and high-quality personnel, with the goal of regaining the advantage of the home market. It is hoped that in the near future, Vietnam's pharmaceutical industry will increasingly develop and positively contribute to the economic development of the country, so that Vietnamese people will enjoy the best drugs and medical services.

Methods of media analysis to assess the reputation of pharmaceutical companies applied by Vietnam Report is are based on the Agenda Setting theory on the impact of the mass media to communities and society by 2 professors Maxwell McCombs and Donald L. Shaw, which was officially announced in 1968. Vietnam Report also used the Branch Coding method (rating the company's image on the media) to analyze the prestige of Vietnamese pharmaceutical companies.

Vietnam Report coded articles writing about the pharmaceutical industry that were published in the following newspapers: Health and Life, Public Health Report, Thanh Nien, Vnexpress, Dantri, VietnamPlus, VietNamNet ... from January 2015 to October 2016.

There are a total of 596 articles, respectively with 1,226 coding units assessed at the story level on 24 specific operational aspects of companies, from product to business performance, market ... to the operations and reputation of the company leadership.

The selected information for coding is based on two basic principles: the company name appears right on the title of the article, or news about the company with the length of at least 5 lines in articles. This is called threshold of perception - when information is considered to be valuable for analysis. The information is evaluated at the following levels: 0: Neutral; 1: Positive; 2: Quite positive; 3: Not clear; 4: Fairly negative; 5: Negative. Finally, the research team made 3 levels for the final evaluation, including: Neutral (including 0 and 3), positive (1 and 2), and negative (4 and 5).

The ceremony to honor the Top 10 Prestigious Pharmaceutical Companies of Vietnam in 2016 will be held on November 25th 2016 as part of the V1000 - Top 1,000 tax paying businesses in Vietnam in 2016 at the National Convention Center in Hanoi, which is jointly held by Vietnam Report, Taxation Magazine of the General Department of Taxation and VietNamNet Newspaper - the Ministry of Information and Communication.

Also, at the ceremony the Top 50 Excellent Businesses in 2012-2015 will be honored and the Annual Tariff Environment Report 2016 Tax based on the survey of Vietnam Report will be released.

Source: VietNamNet