On November 22, 2024, Vietnam Report announced the Top 10 most reputable companies in the Pharmaceutical & Medical Equipment and Healthcare industries for 2024.
The awards ceremony honoring businesses, organized by Vietnam Report and VietNamNet newspaper, will take place in January 2025 in Hanoi .
The Top 10 most reputable companies in the Pharmaceutical & Medical Equipment and Healthcare industries are based on three main criteria: Financial capacity as shown in the most recent annual financial statements; Media reputation assessed using the Media Coding method; and Surveys of relevant stakeholders.
Market landscape and long-term outlook
After a strong 2023, the growth momentum of the Pharmaceutical and Medical Equipment & Healthcare (EM&HC) industry slowed down in the first 10 months of 2024, especially in the first and second quarters. According to a survey by Vietnam Report, revenue did not fluctuate significantly compared to the same period last year, but the percentage of businesses experiencing a decline in profits increased considerably (+16.4%). This was due to fluctuations in input material prices, reduced purchasing power due to austerity measures, slow turnover of some products supporting the fight against the pandemic, and increased market competition.
However, the Vietnamese economy is gradually shifting to a recovery phase with significant improvements in many indicators, providing a solid foundation to support the industry's growth momentum. According to a survey by Vietnam Report, 66.6% of businesses are optimistic about market prospects in 2025. The hospital drug distribution channel (ETC), which dominates the industry's revenue, is expected to continue growing thanks to the universal health insurance policy, the relaxation of drug bidding regulations in hospitals, and the demand for specialized pharmaceutical products. Meanwhile, the pharmacy distribution channel (OTC), although not experiencing particularly impressive revenue growth, is also expected to see more positive developments from the majority of businesses.
In the long term, the Vietnamese pharmaceutical and medical equipment and healthcare industry is assessed to have strong growth potential with many driving forces such as: (1) Government support policies and adjustments and additions in the Pharmaceutical Law; (2) Increased demand for pharmaceuticals and healthcare as Vietnam is undergoing population aging and the incidence of non-communicable diseases is becoming more common; (3) Consumers are increasingly health-conscious and proactive in disease prevention while disposable income is increasing; (4) Globalization and international integration create opportunities to expand distribution networks, strengthen brand coverage, promote cooperation, and create conditions for businesses to participate in global value chains.
Specifically, according to a survey by Vietnam Report, businesses believe that the new business environment with a clear legal framework is an opportunity for them to orient themselves for the next growth phase. The top 5 priority policies recommended by businesses include: Completing the legal framework for the production and distribution of pharmaceuticals, medical devices, and healthcare products (70.6%); Simplifying administrative procedures and promoting the application of information technology (64.7%); Improving and making the bidding process at hospitals transparent (47.1%); Developing and completing a comprehensive national database on pharmaceuticals and medical devices, applying Big Data (47.1%); and Strengthening product quality management (41.2%).
Reaching new heights in the era of integration.
According to businesses, the process of deep integration brings potential benefits, ranging from attracting foreign investment, expanding export markets, accessing advanced production technologies and quality management standards, to improving the efficiency of supply chains and raw material management.
However, the pharmaceutical and medical equipment/healthcare industry in Vietnam still faces many challenges such as limitations in infrastructure, technical expertise, technology, and the scale of domestic pharmaceutical companies. To create a breakthrough, the pharmaceutical and medical equipment/healthcare industry needs comprehensive efforts, not only to consolidate its position domestically but also to participate more deeply in the global value chain. Businesses need to find their differentiating factors and create unique value, while building a strong and reputable brand.
A notable point in the Media Coding analysis results is the rise of the "Market Position" theme, with continuous growth since 2020, reaching fifth place in terms of coded information volume over the past year. This can be explained by the increasing demand for businesses to assert their position, not only within the industry but also in the eyes of the public, investors, and international partners. The "Product" theme maintains its leading position, reflecting the strong focus of businesses on conveying information about products, service quality, advanced pharmaceutical technology, and innovation in production.
(Source: Vietnam Report)
Source: https://vietnamnet.vn/top-10-cong-ty-uy-tin-nganh-duoc-va-thiet-bi-y-te-cham-soc-suc-khoe-nam-2024-2344647.html
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