VIETNAM PHARMACEUTICAL INDUSTRY

The total value of the pharmaceutical industry in 2018 was estimated at 5.9 million USD, of which imported pharmaceuticals made a significant contribution to the growth rate. Vietnam pharmaceutical import turnover reached USD 2,795.9 million, almost equal to the same period last year. Pharmaceutical exports in Vietnam have continuously increased since 2012, in 2018, pharmaceutical exports reached approximately 5.6% of the total import value, but mainly exported on the spot.

According to information on drug prices declared on the website of the Drug Administration of the Ministry of Health, from the beginning of the year to 30th November , 2018: About imported drugs, there are 482 turns of prescription drugs price declaration, 26 times of goods re-declared prices; About domestic drugs, there are 957 items of price declaration, 152 items of goods are re-declared. Thus, the total amount of drug re-declared accounted for less than 0.5% of the total drug circulation volume.

Pharmaceutical is an essential demand group, so economic growth has almost no effect on the growth rate of the industry. With WTO, Vietnam’s pharmaceutical market has gradually opened its doors. After the CPTPP Agreement signed on March 8, 2018, domestic Pharmaceutical Companies will be put under greater competitive pressure from foreign companies.

M & A trends between domestic and foreign businesses took place strongly for pharmaceutical production in franchise and distribution sectors. Vietnam’s pharmaceutical industry is forecasted to continue double-digit growth compared to the current value growth but tend to decrease compared to the 2010-2015 period. Most businesses in the pharmaceutical industry still maintain a positive business situation with positive gross profit and net profit in the period of 2016 – 2017.

Abbreviations
Report summary
1. Business environment
1.1. Macroeconomic situation
1.2. Legal framework
1.3. Trade Agreements
2. Pharmaceutical Industry Overview
2.1. Global Pharmaceutical Industry 
2.1.1. Production – Consumption
2.1.2. Export – Import
2.1.3. Production and Consumption Situation in major countries
2.1.4. Large Enterprises in the world
2.2. Vietnam Pharmaceutical Industry Overview
2.2.1. History of Vietnam Pharmaceutical Industry
2.2.2. Industry Position
2.2.3. Industry Scale and Feature
2.2.4. Value Chain of Vietnam Pharmaceutical Industry
2.2.5. Raw materials
2.2.6. Production technology
2.2.7. R&D
2.2.8. Production
2.2.9. Consumption
2.2.10. Export – Import
2.2.11. Price movements
2.2.12. Distribution system
2.3. Risks and challenges
2.4. Industry planning
2.5. Driving forces and forecast
3. Enterprise analysis
3.1. Profitability Ratios
3.2. Cost structure
3.3. Asset Management Ratios
3.4. Capital Structure
3.5. Solvency
3.6. Return on Investment
4. Appendix of financial statements
DHG Pharmaceutical Joint Stock Company
TRAPHACO Joint Stock Company
Domesco Medical Import Export JSC
Imexpharm Pharmaceutical JSC
OPC Pharmaceutical JSC
S.P.M JSC
Vimedimex Medi – Pharma JSC
Ha Tay Pharmaceutical JSC
Ben Tre Pharmaceutical JSC
Lam Dong Pharmaceutical JSC
List of tables
Table 1: Pharmaceuticals exporters, 2017
Table 2: Pharmaceuticals importers, 2017
Table 3: General information about the healthcare industry of The U.S, 2016e
Table 4: General information about the healthcare industry of Japan, 2016e
Table 5: General information about the healthcare industry of China, 2016e
Table 6: General information about the healthcare industry of Germany, 2016e
Table 7 General information about the healthcare industry of France, 2016e
Table 8: Origin of machinery and equipments of a number of large pharmaceutical companies
Table 9 Some major machineries in pharmaceutical manufacturing line
Table 10: Medicine production by type, 2013 – 3M/2018e
Table 11: Vietnam’s top import partners, 3M/2018
Table 12: Top exporting enterprises, 3M/2018
Table 13: Price movements of some major drugs in the market, 12/2016 – 3/2018
Table 14: The difference in the price of some drugs at some drug stores, 2017
Table 15: The number of medical facilities, 2010 – 2016
Table 16: Typical chain of pharmacies, 2016
Table 17: Average cost of R&D to produce new drugs (USD million)
Table 18: 10 typical pharmaceutical enterprises in 2017 
List of figures
Figure 1: GDP growth, 2011 – 3M/2018
Figure 2: Consumer Price Index for Medicines and Health Services, 2012 – 3M/2018
Figure 3: VND/USD exchange rate, 3/2016 – 3/2018
Figure 4: VND/CNY exchange rate, 2016 – 3/2018
Figure 5: Population and population growth, 2006 -2017
Figure 6: Population structure, 1999 – 2016
Figure 7: Pharmaceuticals imports ,2012 – 3M/2018e
Figure 8: Global spending on medicines, 2010 – 2016e
Figure 9: World sales of prescription drugs, 2010 – 2016
Figure 10: Consumption structure by types of medicines, 2011 – 2016
Figure 11: Consumption market share by group, 2016
Figure 12: World’s top 10 consumed phamaceuticals, 2016
Figure 13: Global pharmaceutical exports, 2010 – 2017e
Figure 14: Top 10 pharmaceutical enterprises with largest revenue, 2017
Figure 15: Classification of medicine markets by distribution methods
Figure 16: Classification of medicine markets by ownership
Figure 17: Pharmaceutical materials imports, 2012 – 3M/2018e
Figure 18: Pharmaceutical materials imports, 3M/2017 – 3M/2018e
Figure 19: Ratio of R&D/revenue at major pharmaceutical companies in the world, 2016
Figure 20: Domestic pharmaceutical production value, 2010 – 2017e
Figure 21: Pharmaceutical market value, 2010 – 2017e
Figure 22: Value ratio of domestically produced medicines in Vietnam, 2010 – 2017e
Figure 23: Domestically produced medicine consumption, 2010 – 3M/2018e
Figure 24: Spending on medicines in Vietnam, 2009 – 2017e
Figure 25: Spending on medicines per capita in some countries, 2016e
Figure 26: Medicines consumption structure by channel, 2010 – 2017e
Figure 27: Market value of prescription  drugs (ETC), 2011 – 2017e
Figure 28: Market value of non-presciption drugs (OTC), 2010 – 2017e
Figure 29: Patened drugs (Patent), 2010 – 2017e
Figure 30: Generic drug market, 2010 – 2017e
Figure 31: Pharmaceutical imports, 2012 – 3M/2018e
Figure 32: Pharmaceutical imports, 3M/2017 – 3M/2018e
Figure 33: Pharmaceutical exports, 2012 – 3M/2018
Figure 34: Export structure by country, 3M/2018
Figure 35: Rate of drug re-price (increase), 2013 – 2016
Figure 36: Drugs distribution network in Vietnam
Figure 37: Top pharmaceuticals distribution enterprise by revenue, 2016
Figure 38: Outstanding distribution chain business results, 2016
Figure 39: Unqualified sample ratio, 2010 – 2016e
Figure 40: Total healthcare expenses, 2010 – 2016f
Figure 41: Population tower, 2016
Figure 42: Over-60 population growth in the world, 1950 – 2050
Figure 43: M&A of pharmaceutical industry, 2010 – 2016
Figure 44: The revenue of top drugs in developed countries, 2018
Figure 45: The revenue of top drugs in developing countries, 2018
Figure 46: The growth of total drug consumption and average drug spending per capita, 2010-2020f
Figure 47: Profitability, 2016 – 2017
Figure 48: COGS/NR, 2016 – 2017
Figure 49: Selling expenses, 2016 – 2017
Figure 50: Administrative expenses, 2016 – 2017
Figure 51: Days in inventory, 2016 – 2017
Figure 52: Days of sales outstanding, 2016 -2017
Figure 53: Asset turnover
Figure 54: Self-financing ratio, 2016 – 2017
Figure 55: Solvency, 2016 – 2017
Figure 56: Profit ratio, 2016 – 2017