Vietnam Phamaceutical Comprehensive Report Q2/2016
With 178 drug manufacturers Vietnam pharmaceutical products mostly focus on simple dosage forms and generic form with lower values and overlapping, and completely lack effective drugs with complicated preparation. On the other hand, there are a huge number of companies in generic drugs market, which is very small, then leading to decrease in profits. Vietnam Pharmaceutical industry uses about 60,000 tons of medicines, of which about 80-90% is imported. The ratio of research & development expense to revenue at domestic companies is just about 5%.
In 2015, according to Vietnam Industry Research and Consultant (VIRAC) estimation, Pharmaceutical industry value is expected to reach US$4.2bn. Although pharmaceutical spending per capita in 2015, according to VIRAC’s estimation, is US$38. The growth of the prescription drug market will exceed the growth rate of Over-the-counter (OTC) market.
The market value of patented drugs in Vietnam tends to increase gradually. Pharmaceutical imports in 2015 reached US$2.3bn, mainly from France (US$275m) and India US$267m).
Pharmaceutical exports in Vietnam reached relatively low rate of 5% of the import value and 2.5% of the industry consumption value. The biggest wholesale market systems in Vietnam pharmaceutical distribution in Ho Chi Minh City and Hanoi. Pharmaceutical products are necessities, thus, economic growth virtually has hardly any impact on the industry growth rate. Some main industry driving forces are the protection from state.
To compromise WTO agendas, Vietnam has to gradually open the pharmaceutical market by allowing foreign firms to built plants and distribution network in Vietnam. With higher level of opening after the TPP, domestic pharmaceutical companies will face the threat of more competition from FDI ones.
Vietnam Pharmaceutical industry is forecast to continue the double-digit growth. Most of the enterprises of pharmaceutical industry maintained positive operation with high levels of gross profit and net profit in the period 2014-2015. In addition, raising awareness of consumers on health issues and initiative in healthcare also contributed greatly to industry development. With higher disposable incomes, consumers seem to be more interested in vitamins and supplements to diets.
The in-depth research “Vietnam Pharmaceutical Industry” carried out by Vietnam Industry Research and Consultant (VIRAC) illustrates the overall scenario of the pharmaceutical industry in Vietnam in order to provide an insight for a better understanding regarding the market. The report details the economic situation in general and the industry in particular with updated date and statistic until 2017, the movement of the price as well as the forecast for the upcoming future, covering all domains. Analysis of big players in the industry is also elaborated by providing detailed financial analysis, applied technology, market share, etc. herein to help companies position and define the competiveness in the market. For example, some typical producers are DHG Pharma JSC, Imexpharm Pharma JSC, Domesco Medical Import Export JSC, TRAPHACO JSC, S.P.M JSC.
COMPANIES METION
In 2015, according to Vietnam Industry Research and Consultant (VIRAC) estimation, Pharmaceutical industry value is expected to reach US$4.2bn. Although pharmaceutical spending per capita in 2015, according to VIRAC’s estimation, is US$38. The growth of the prescription drug market will exceed the growth rate of Over-the-counter (OTC) market.
The market value of patented drugs in Vietnam tends to increase gradually. Pharmaceutical imports in 2015 reached US$2.3bn, mainly from France (US$275m) and India US$267m).
Pharmaceutical exports in Vietnam reached relatively low rate of 5% of the import value and 2.5% of the industry consumption value. The biggest wholesale market systems in Vietnam pharmaceutical distribution in Ho Chi Minh City and Hanoi. Pharmaceutical products are necessities, thus, economic growth virtually has hardly any impact on the industry growth rate. Some main industry driving forces are the protection from state.
To compromise WTO agendas, Vietnam has to gradually open the pharmaceutical market by allowing foreign firms to built plants and distribution network in Vietnam. With higher level of opening after the TPP, domestic pharmaceutical companies will face the threat of more competition from FDI ones.
Vietnam Pharmaceutical industry is forecast to continue the double-digit growth. Most of the enterprises of pharmaceutical industry maintained positive operation with high levels of gross profit and net profit in the period 2014-2015. In addition, raising awareness of consumers on health issues and initiative in healthcare also contributed greatly to industry development. With higher disposable incomes, consumers seem to be more interested in vitamins and supplements to diets.
The in-depth research “Vietnam Pharmaceutical Industry” carried out by Vietnam Industry Research and Consultant (VIRAC) illustrates the overall scenario of the pharmaceutical industry in Vietnam in order to provide an insight for a better understanding regarding the market. The report details the economic situation in general and the industry in particular with updated date and statistic until 2017, the movement of the price as well as the forecast for the upcoming future, covering all domains. Analysis of big players in the industry is also elaborated by providing detailed financial analysis, applied technology, market share, etc. herein to help companies position and define the competiveness in the market. For example, some typical producers are DHG Pharma JSC, Imexpharm Pharma JSC, Domesco Medical Import Export JSC, TRAPHACO JSC, S.P.M JSC.
COMPANIES METION
- DHG Pharma JSC
- Imexpharm Pharma JSC
- Domesco Medical Import-export JSC
- S.P.M JSC
- TRAPHACO JSC
- OPC Pharma JSC
- Lam Dong Pharma JSC (Ladophar)
- Ha Tay Pharma JSC (Hataphar)
- Ben Tre Pharma JSC (Bepharco)
- Vimedimex Pharma JSC
EXECUTIVE SUMMARY
List of abbreviations
1. BUSINESS ENVIRONMENT
1.1. Macroeconomic Situation
Figure 1. GDP Growth and Inflation, 2010-2015
Figure 2. CPI of Vietnam and of Medicines and Healthcare Services sector, 2010 – 2015
Figure 3. USD/VND exchange rate, 2010-2015
Figure 4. CNY/VND exchange rate, 2010-2015
Figure 5. The total population of Vietnam, 2010-2015
Figure 6. Vietnam population structure by age group
1.2. Legal Barriers
1.3. Impacts of Free Trade Agreement
Figure 7. Import value of pharmaceutical products, 2010 – 2015
2. VIETNAM PHARMACEUTICAL INDUSTRY OVERVIEW
2.1. Global Pharmaceutical Industry
2.1.1. Production – Consumption
Figure 8. Global Pharmaceutical industry revenue, 2010 – 2014
Figure 9. Global revenue of prescription drugs, 2010-2014
Figure 10. Global pharmaceutical revenue by region, 2014
Figure 11. Top 10 pharmaceutical products consumed the most in the world, 2014
2.1.2. Export – Import
Figure 12. Global pharmaceutical export, 2010 – 2015
Figure 13. Global pharmaceutical import, 2010 – 2015
Table 1. Top countries importing and exporting of pharmaceuticals, 2014
2.1.3. Production and Consumption Situation in major countries
2.1.4. Large Enterprises in the world
Figure 14. Top 10 pharmaceutical enterprises, 2015
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
Figure 15. Raw material import, 2010 – 2016e
Figure 16. Raw material import market by country, 2015
2.2.6. Production Technology
Table 2. Machinery origin of large pharmaceutical manufacturers
Table 3. Major equipment in pharmaceutical production lines
2.2.7. Research and Development
Figure 17. R&D/Revenue rate of large pharmaceutical companies in the world
2.2.8. Production
Figure 18. Value of domestic pharmaceutical production, 2010 – 2015e
Figure 19. Value rate of Vietnam domestically-produced drug, 2009 – 2015e
2.2.9. Consumption
Figure 20. Pharmaceutical market value, 2010 – 2015e
Figure 21. Domestic Pharmaceutical consumption value, 2010 - Q1/2016e
Figure 22. Pharmaceutical spending per capita in Vietnam, 2009 – 2015e
Figure 23. Pharmaceutical spending per capita in the world, 2014
Figure 24. Prescription Drug market value, 2010 – 2015e
Figure 25. OTC Drug market value, 2010 – 2015e
Figure 26. Patented drug, 2010 – 2015e
Figure 27. Generic Drug, 2010 – 2015e
2.2.10. Export – Import
Figure 28. Drug import, 2010 – Q1/2016
Figure 29. Top drug import market of Vietnam, 2015
Figure 30. Drug export, 2010 - 2014
2.2.11. Price Movement
Table 4. Price of some drugs in the market
Table 5. Price - redeclared products statistics, 2015
Table 6. The difference in the price of some drugs at Hapulico market, 2015
2.2.12. Distribution System
Table 7. The number of medical facilities, 2010 – 2014
2.3. Risks and Challenges
2.4. Industry Planning
2.5. Driving Forces and Forecast
Figure 31. Healthcare cost, 2010 – 2016f
Figure 32. Global population growth over the age of 60, 1950 – 2050
Figure 33. The number and value of M&A deals in the world, 2010 - 2015
Figure 34. 10 countries with the highest number of M&A deals in the world, 2015
Table 8. The revenue of top drugs in developed countries, 2018
Table 9. The revenue of top drugs in developing countries, 2018
Figure 35. The growth of total drug consumption and average drug spending per capita, 2010-2020
3. ENTERPRISE ANALYSIS
Table 10. 10 typical pharmaceutical enterprises in 2015
3.1. Profitability Ratios
Figure 36. Gross profit margin and net profit margin of 10 pharmaceutical enterprises, 2014 – 2015
3.2. Cost Structure
Figure 37. Selling expenses on net revenue of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 38. Staff expenses of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 39. The rate of general and administration expenses on net revenue
of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 40. Staff expenses of 10 typical pharmaceutical enterprises, 2014-2015
3.3. Asset Management Ratios
Figure 41. Days in inventory of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 42. Average collection period of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 43. Fixed asset turnover ratio of 10 typical pharmaceutical enterprises, 2014 – 2015
3.4. Capital Structure
Figure 44. Self-financing ratio of 15 typical pharmaceutical enterprises, 2014 – 2015
3.5. Solvency Ratios
Figure 45. The solvency ratio of 10 typical pharmaceutical enterprises, 2014 – 2015
3.6. Return Ratios
Figure 46. ROA and ROE ratio of 10 typical pharmaceutical enterprises, 2014 – 2015
4. APENDIX – FINANCIAL STATEMENT
List of abbreviations
1. BUSINESS ENVIRONMENT
1.1. Macroeconomic Situation
Figure 1. GDP Growth and Inflation, 2010-2015
Figure 2. CPI of Vietnam and of Medicines and Healthcare Services sector, 2010 – 2015
Figure 3. USD/VND exchange rate, 2010-2015
Figure 4. CNY/VND exchange rate, 2010-2015
Figure 5. The total population of Vietnam, 2010-2015
Figure 6. Vietnam population structure by age group
1.2. Legal Barriers
1.3. Impacts of Free Trade Agreement
Figure 7. Import value of pharmaceutical products, 2010 – 2015
2. VIETNAM PHARMACEUTICAL INDUSTRY OVERVIEW
2.1. Global Pharmaceutical Industry
2.1.1. Production – Consumption
Figure 8. Global Pharmaceutical industry revenue, 2010 – 2014
Figure 9. Global revenue of prescription drugs, 2010-2014
Figure 10. Global pharmaceutical revenue by region, 2014
Figure 11. Top 10 pharmaceutical products consumed the most in the world, 2014
2.1.2. Export – Import
Figure 12. Global pharmaceutical export, 2010 – 2015
Figure 13. Global pharmaceutical import, 2010 – 2015
Table 1. Top countries importing and exporting of pharmaceuticals, 2014
2.1.3. Production and Consumption Situation in major countries
2.1.4. Large Enterprises in the world
Figure 14. Top 10 pharmaceutical enterprises, 2015
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
Figure 15. Raw material import, 2010 – 2016e
Figure 16. Raw material import market by country, 2015
2.2.6. Production Technology
Table 2. Machinery origin of large pharmaceutical manufacturers
Table 3. Major equipment in pharmaceutical production lines
2.2.7. Research and Development
Figure 17. R&D/Revenue rate of large pharmaceutical companies in the world
2.2.8. Production
Figure 18. Value of domestic pharmaceutical production, 2010 – 2015e
Figure 19. Value rate of Vietnam domestically-produced drug, 2009 – 2015e
2.2.9. Consumption
Figure 20. Pharmaceutical market value, 2010 – 2015e
Figure 21. Domestic Pharmaceutical consumption value, 2010 - Q1/2016e
Figure 22. Pharmaceutical spending per capita in Vietnam, 2009 – 2015e
Figure 23. Pharmaceutical spending per capita in the world, 2014
Figure 24. Prescription Drug market value, 2010 – 2015e
Figure 25. OTC Drug market value, 2010 – 2015e
Figure 26. Patented drug, 2010 – 2015e
Figure 27. Generic Drug, 2010 – 2015e
2.2.10. Export – Import
Figure 28. Drug import, 2010 – Q1/2016
Figure 29. Top drug import market of Vietnam, 2015
Figure 30. Drug export, 2010 - 2014
2.2.11. Price Movement
Table 4. Price of some drugs in the market
Table 5. Price - redeclared products statistics, 2015
Table 6. The difference in the price of some drugs at Hapulico market, 2015
2.2.12. Distribution System
Table 7. The number of medical facilities, 2010 – 2014
2.3. Risks and Challenges
2.4. Industry Planning
2.5. Driving Forces and Forecast
Figure 31. Healthcare cost, 2010 – 2016f
Figure 32. Global population growth over the age of 60, 1950 – 2050
Figure 33. The number and value of M&A deals in the world, 2010 - 2015
Figure 34. 10 countries with the highest number of M&A deals in the world, 2015
Table 8. The revenue of top drugs in developed countries, 2018
Table 9. The revenue of top drugs in developing countries, 2018
Figure 35. The growth of total drug consumption and average drug spending per capita, 2010-2020
3. ENTERPRISE ANALYSIS
Table 10. 10 typical pharmaceutical enterprises in 2015
3.1. Profitability Ratios
Figure 36. Gross profit margin and net profit margin of 10 pharmaceutical enterprises, 2014 – 2015
3.2. Cost Structure
Figure 37. Selling expenses on net revenue of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 38. Staff expenses of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 39. The rate of general and administration expenses on net revenue
of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 40. Staff expenses of 10 typical pharmaceutical enterprises, 2014-2015
3.3. Asset Management Ratios
Figure 41. Days in inventory of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 42. Average collection period of 10 typical pharmaceutical enterprises, 2014 – 2015
Figure 43. Fixed asset turnover ratio of 10 typical pharmaceutical enterprises, 2014 – 2015
3.4. Capital Structure
Figure 44. Self-financing ratio of 15 typical pharmaceutical enterprises, 2014 – 2015
3.5. Solvency Ratios
Figure 45. The solvency ratio of 10 typical pharmaceutical enterprises, 2014 – 2015
3.6. Return Ratios
Figure 46. ROA and ROE ratio of 10 typical pharmaceutical enterprises, 2014 – 2015
4. APENDIX – FINANCIAL STATEMENT
