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Vietnam Pharmaceutical Comprehensive Report Q1/2019

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    Report

  • 133 Pages
  • July 2019
  • Region: Vietnam
  • Vietnam Industry Research And Consultant (PI)
  • ID: 4801956
Vietnam Pharmaceutical industry uses about 60,000 tons of pharmaceutical materials and 80-90% of them are imported. In particular, China and India have been the two countries with the largest export turnover of pharmaceutical materials in Vietnam for many years.

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 declaring prices, 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 drug 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.

Table of Contents

AbbreviationsReport 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
List of figures
Figure 1: Gross domestic product, 2010 - 2018
Figure 2: Consumer drug and medical service price index, 2012 - 2018
Figure 3: VND/USD exchange rate, 2011 - 2018
Figure 4: VND/CNY exchange rate, 2013 – 2018
Figure 5: Population structure, 1999 - 2017
Figure 6: Population and population growth, 2006 -2017
Figure 7: Import of pharmaceuticals, 2012 - 2018e
Figure 8: The number of new drugs authorized by the FDA, 2010 - 2017
Figure 9: Investment in R&D in the world, 2010 - 2024f
Figure 10: Top 10 enterprises with the largest R & D costs, 2017
Figure 11: Top 10 enterprises with the largest R & D costs, 2024
Figure 12: Revenue of the global pharmaceutical industry, 2010 - 2017e
Figure 13: Worldwide prescription drug sales, 2010 - 2017
Figure 14: Worldwide Drug Sales by Technology, 2010 - 2017
Figure 15: Drug consumption by types, 2011 - 2016
Figure 16: Drug consumption by group, 2017
Figure 17: Top 10 therapeutic classes by estimated global pharmaceutical sales*, 2017
Figure 18: Worldwide pharmaceutical exports, 2010 - 2017e
Figure 19: Revenue of China’s pharmaceutical industry, 2012 - 2016
Figure 20: Top 10 pharmaceutical enterprises with largest revenue, 2017
Figure 21: Import of raw materials, 2012 - 2018e
Figure 22: Import of pharmaceutical raw materials, 2017 - 2018e
Figure 23: Average capital, fixed assets and long-term average investment of enterprises, 2010 - 2017
Figure 24: Number of enterprises and workers in medicine, chemical and pharmaceutical manufacturing sectors, 2010 - 2017
Figure 25: Revenue and profit before tax, 2010 - 2017
Figure 26: Domestic pharmaceutical production value, 2010 - 2018e
Figure 27: Market value of pharmaceutical industry, 2010 - 2018e
Figure 28: Value ratio of domestically produced medicines in Vietnam, 2010 – 2017e
Figure 29: Domestically produced medicine consumption, 2010 – 2018e
Figure 30: Spending on medicines in Vietnam, 2009 – 2017e
Figure 31: Spending on medicines per capita in some countries, 2016e
Figure 32: Medicines consumption structure by channel, 2010 - 2017e
Figure 33: Current status of Patented and Generic drugs, 2010 - 2017e
Figure 34: Market value of prescription drugs (ETC), 2011 – 2017e
Figure 35: Market value of non-presciption drugs (OTC), 2010 – 2017e
Figure 36: Patened drugs (Patent), 2010 – 2017e
Figure 37: Generic drug market, 2010 – 2017e
Figure 38: Import of pharmaceuticals, 2012 - 2018e
Figure 39: Pharmaceutical imports, 2017 – 2018e
Figure 40: Pharmaceuticals imports from India, 2013 – 2018
Figure 41: Top importing enterprises *, 2018
Figure 42: Pharmaceutical export, 2012 - 2018e
Figure 43: Export structure by country, 2018
Figure 44: Rate of drug re-price (increase), 2013 - 2016
Figure 45: Top pharmaceuticals distribution enterprise by revenue, 2017
Figure 46: Typical drug distribution chains, 2017
Figure 47: Unqualified sample ratio, 2010 – 2016e
Figure 48: Total healthcare expenses, 2010 – 2016f
Figure 49: Population tower, 2016
Figure 50: Over-60 population growth in the world, 1950 – 2050
Figure 51: M&A of pharmaceutical industry, 2010 - 2018
Figure 52: Sales of prescription drugs, 2017 - 2024f
Figure 53: Sales of top largest companies, 2024f
Figure 54: TProduction of drugs according to technology, 2017 - 2024f
Figure 55: Growth of total drug consumption value in Vietnam, 2012 - 2022f
Figure 56: Drug expenditure per capita, 2017 - 2022f
Figure 57: Profitability, 2016 - 2017
Figure 58: Cost of goods sold / Net revenue, 2016 - 2017
Figure 59: Selling expenses, 2016 - 2017
Figure 60: Enterprise management costs, 2016 - 2017
Figure 61: Inventory days, 2016 - 2017
Figure 62: Average collection period, 2016 - 2017
Figure 63: Asset rotation, 2016 - 2017
Figure 64: Self-financing ratio, 2016 - 2017
Figure 65: Solvency, 2016 - 2017
Figure 66: Profit ratio, 2016 - 2017
List of tables
Table 1: Top pharmaceutical exporting countries, 2017
Table 2: Top pharmaceutical importing countries, 2017
Table 3: General information about the healthcare industry of The U.S, 2017e
Table 4: General information about the healthcare industry of Japan, 2017e
Table 5: General information about the healthcare industry of China, 2016e
Table 6: General information about the healthcare industry of Germany, 2017e
Table 7 General information about the healthcare industry of France, 2017e
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: Statistics of drug production by category, 2013 –2018e
Table 11: Vietnam’s top import partners, 2018
Table 12: Top exporting enterprises, 2018
Table 13: Price movements of some major drugs in the market, 12/2017 – 12/2018
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, 2018
Table 17: Average cost of R&D to produce new drugs (USD million)
Table 18: Top 10 M&A in the world, 2017
Table 19: Top businesses by Biotechnology technology, 2024
Table 20: 10 typical pharmaceutical enterprises in 2017

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • 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

Methodology

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