The challenge is finding a company capable of leading the domestic pharmaceutical industry.

In the pharmaceutical industry's development strategy, the formation of large-scale enterprises is essential to ensure a stable supply of medicines for the domestic market and to aim for increased exports.

Great opportunities for domestic pharmaceuticals.

The pharmaceutical industry is facing significant opportunities for recovery and growth. With a market of 100 million people and a rapidly aging population, the demand for healthcare and pharmaceutical treatments is increasing, and spending on pharmaceuticals is also on a strong growth trajectory.

Furthermore, the new generation Free Trade Agreements (FTAs) that Vietnam has signed also create momentum for the growth of the pharmaceutical industry in the coming years, aiming towards higher-standard product lines. These opportunities are set within the National Strategy for the Development of Vietnam's Pharmaceutical Industry to 2030, with a vision to 2045, opening up prospects for sustainable development for the industry.

Employees working at the Imexpharm factory. Photo: Imexpharm

According to data from the Drug Administration of Vietnam as of October 2024, there are approximately 288 drug manufacturing facilities nationwide that adhere to GMP standards. Of these, about 31 facilities meet EU-GMP or equivalent (Japan-GMP) standards, while the remainder meet WHO-GMP standards.

According to Pharma Group, among all industries, the pharmaceutical industry consistently invests the most in R&D. The R&D content of the biopharmaceutical industry worldwide reaches 15.5% of revenue. The general trend in the Vietnamese and global pharmaceutical industries is to upgrade to the highest production standards to create high-quality products. The Vietnamese pharmaceutical market is becoming increasingly competitive due to the participation of large multinational corporations; therefore, the formation of strong domestic pharmaceutical companies with sufficient financial and technological capacity is more urgent than ever.

And competitiveness in the international market.

The pharmaceutical market has initially seen brands establish themselves, ranking among the top 10 in terms of revenue, such as Imexpharm, DHG Pharma, and Stella Pharm… Most of these companies have foreign strategic shareholders to increase their R&D content, adopt international management models, and expand their markets both domestically and internationally.

Therefore, these businesses are facing opportunities for high growth, expansion, and competitiveness in the international market. According to the Vietnam Drug Administration, the total value of the Vietnamese pharmaceutical market in 2023 was estimated at US$8 billion, and is projected to grow strongly to US$20 billion by 2045, placing Vietnam among the countries with the highest pharmaceutical market value and fastest pharmaceutical industry development in the world.

General Director Tran Thi Dao speaks at Imexpharm's 2024 Annual General Meeting. Photo: Imexpharm

“A strong financial foundation continues to enable the company to invest in technology, keeping pace with the dramatic changes in the pharmaceutical market structure in the coming period. In addition, we are also ready for digital transformation and green transformation in order to compete on an international scale,” said Ms. Tran Thi Dao, General Director of Imexpharm Pharmaceutical Joint Stock Company.

With 3 EU-GMP certified factory complexes and 11 EU-GMP certified production lines, Imexpharm is the number one antibiotic manufacturer in Vietnam. Imexpharm is leading a new trend in the Vietnamese pharmaceutical market, meeting domestic market demand while enhancing competitiveness against foreign pharmaceuticals.

Recently, Imexpharm completed an increase in its charter capital to VND 1,540 billion, becoming the company with the highest charter capital in the domestic pharmaceutical industry today. This is a positive sign in the context of the Vietnamese pharmaceutical industry, which is still quite fragmented, with many small companies having limited financial resources. On the other hand, a strong financial foundation will continue to enable Imexpharm to invest more heavily in R&D, high-tech pharmaceutical production, and innovative pharmaceuticals, contributing to the strategy of ensuring the supply of medicines for the domestic market.

According to the newly released financial report, Imexpharm's revenue for the first nine months of the year increased by 12% compared to the same period last year, reaching VND 1,553 billion, completing 66% of the year's revenue target and bringing the company closer to its year-end goal. Pre-tax profit in September saw spectacular growth of 42% compared to the same period last year and 43% compared to August. In 2024, Imexpharm aims for net revenue of VND 2,365 billion and pre-tax profit of VND 423 billion; representing increases of 19% and 12% respectively compared to the previous year.

With favorable growth conditions, in the first nine months of 2024, Imexpharm launched 16 new products and had 99 R&D projects underway. By providing high-quality, reasonably priced specialized medicines, the company has replaced imported drugs in many hospitals, increasing its competitiveness in the domestic market and creating a barrier to foreign pharmaceutical companies. Along with three EU-GMP standard factory complexes, to capitalize on growth, Imexpharm also announced plans to build the Cat Khanh Pharmaceutical Factory Complex Project in Dong Thap .

“In the long term, the company will focus on developing new products that are in high demand, complex, and difficult to manufacture. The investment in high technology and innovative pharmaceuticals by pharmaceutical companies like Imexpharm contributes to Vietnam achieving its goal of becoming a regional pharmaceutical manufacturing hub,” said an Imexpharm leader.

Source: https://baodautu.vn/bai-toan-tim-doanh-nghiep-du-tam-dan-dat-nganh-duoc-trong-nuoc-d228356.html