Companies
Stimulating year ahead for pharma
Published
4 weeks agoon
In December, Traphaco kicked-off the second phase of tech transfer production, deemed an important milestone for industrial production and the launch of new products to the market.
Tran Tuc Ma, general director of Traphaco, emphasised, “Technology transfer is one of the company’s key tasks. The products transferred from Daewoong not only enhance the value of the western medicine group but also realise its strategy of building a high-quality medicine brand.”
In 2024, Traphaco, one of the five biggest domestic pharma firm in Vietnam, optimised its operational efficiency by carrying out digital transformation, making investment in research on new products, and strengthening research on high-quality oriental medicines and western drugs, generic medicines, bioequivalents, and those of technology transfer. It also evaluated the feasibility of investing in a GMP-EU factory in the northern province of Hung Yen.
In the short term, as shown in its latest third-quarter financial report, Traphaco’s consolidated revenue reached nearly $73 million, a slight increase from the same period last year, while its profit fell 37.85 per cent. The company blamed the drop on the fact that revenues of the over-the-counter (OTC) channel, which is the group’s main segment, did not meet the plan.
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Many other major Vietnamese drugmakers also faced challenges last year. According to a survey released by Vietnam Report in late 2024, after a bright year in 2023, the growth momentum of the pharmaceutical, medical equipment, and healthcare industries slowed down in the first half of 2024. Accordingly, the market saw an on-year increase in the rate of businesses witnessing a business downturn.
The rate of businesses with declining profits also increased significantly, from 21.1 per cent to 37.5 per cent. Fluctuations in input material prices, increasingly fierce competition, and people’s tightened spending were the key reasons.
For Hau Giang Pharmaceutical (DHG), it made revenue of over $165 million in the first nine months of last year, up from over $163.33 million in the same period of 2023. Meanwhile, its after-tax profit fell 27.7 per cent on-year.
DHG invested in a factory meeting Japanese-GMP standards and put it into operation in the fourth quarter of 2024, with a total investment of $29.16 million, increasing its capacity by 25 per cent. Currently, its ethical drugs channel revenue accounts for about 11 per cent of DHG’s total revenue.
Sources of revenue
Elsewhere, Domesco Medical Import-Export Joint Stock Corporation witnessed an on-year rise of 0.7 per cent in net revenue in the January-September period to more than $18.6 million, but a fall of 26.5 per cent in after-tax profit.
Nguyen Duy Tung from Domesco blamed the situation on fiercer completion, and high exchange rate volatility and instability in some countries, leading to increased raw material and transportation costs.
While the drugmakers have not released full 2024 business results yet, experts said that they might make have good growth prospects thanks to the market’s recovery in the fourth quarter, which was typically a peak for businesses, especially those in the healthcare sector.
Dang Tran Phuc, chairman of the board of AzFin Vietnam, said, “Vietnamese pharmaceutical enterprises have sustainable growth, especially in the group of manufacturers when the demand for drugs in Vietnam has increased by 10 per cent each year.”
In 2024, DHG aimed for revenues of $216.66 million and pre-tax profit of $45 million, and ACB Securities Company forecasts that DHG may achieve higher results than planned. The pharmacy channel will continue to bring in the majority of revenue for the company, with antibiotics, pain relievers, and fever reducers still its key product groups.
Traphaco is also projected to have good growth results for 2024. It is the largest oriental medicine manufacturer in Vietnam, operating a GMP-certified medicinal herb factory and three WHO-certified manufacturing factories with 30,000 large customers in the market, including the Long Chau, Pharmacity, and An Khang chains.
For multinational corporations, growing partnerships with the Ministry of Health (MoH) and associations and medical facilities continued to be among their priorities last year in order to bring new pharmaceuticals and vaccines to Vietnam.
Specifically, AstraZeneca, thanks to its strong and comprehensive partnership with the Vietnamese government, the MoH, and various healthcare organisations, is implementing initiatives that address critical healthcare challenges and deliver tangible benefit to Vietnamese people, such as the Healthy Lung Programme, Young Health Programme, Health Innovation Network, and more.
Atul Tandon, AstraZeneca Vietnam general director, said, “We’re committed to transforming healthcare in Vietnam through innovative solutions. By partnering with the government, healthcare organisations, local experts, and investing in research and development, we’re developing innovative therapies that address unmet patient needs.”
Similarly, over the past decade, Novo Nordisk Vietnam has worked closely with the MoH and the Danish Embassy to Vietnam, hospital partners, and eminent associations like the Vietnam Association of Diabetes and Endocrinology to transform the treatment landscape. These partnerships have included developing physician capability building initiatives, raising public awareness, and shaping healthcare policy.
Future prospects 2025
Businesses are optimistic about the business outlook for 2025. According to a survey released by Vietnam Report in late 2024, two-thirds of pharmaceutical enterprises expressed confidence in the development of the market, while only 13 per cent were concerned about the challenges, and 20 per cent believe that the market will remain stable, with little volatility compared to last year.
Fitch Solutions forecasts that per capita spending on pharmaceuticals will increase significantly from $60.80 in 2021 to $88.30 in 2026, with a compound annual growth rate of 7.8 per cent.
Importantly, it added, new supporting policies in the amended Law on Pharmacy will also be a driving force for the development of the sector in the coming decades.
At present, related enterprises trend to not only focus on traditional products but are also expanding into new areas such as biopharmaceuticals, cancer treatment drugs, and rare drugs, driven by market trends and the government’s support policies.
The ethical drugs channel, which often dominates the industry’s revenue figures, is expected to maintain growth thanks to the universal health insurance policy, more relaxed and open hospital drug bidding regulations, and an increase in demand for specialised products, especially rare drugs and those for the treatment of serious diseases.
Meanwhile, the over-the-counter segment, although not seeing impressive revenue growth in the past 10 months, is also expected by most businesses to have more positive changes in 2025.
Senior pharma expert Le Van Truyen noted, “To truly make a breakthrough, the pharma, medical equipment, and healthcare industries need comprehensive efforts, not only to consolidate their domestic position but also to participate more deeply in the global value chain, contributing to enhancing international prestige and competitiveness, and positioning Vietnam on the global healthcare map.”
Erik Wiebols, general manager Novo Nordisk Vietnam
The revised Law on Pharmacy represents a significant effort by the Vietnamese government and National Assembly to modernise the country in this area. The changes in the law address long-standing industry concerns and create a foundation. It is crucial for the guiding regulations under the new law to be issued promptly to ensure clarity and avoid unnecessary administrative barriers. Member companies of the Pharma Group foresee the need for comprehensive capacity-building initiatives for both regulators and the industry. These efforts will be essential to effectively implement the ambitious objectives outlined in the law. While these changes are promising, there remains considerable work to enhance Vietnam’s competitiveness in the region. For example, attracting investment and fostering innovation will require continued policy refinement, particularly in comparison to other ASEAN countries. |
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Companies
Hanoi to renovate Hoan Kiem Lake area for park development
Published
11 hours agoon
March 12, 2025The renovation project will involve extensive surveys to assess key architectural landmarks, historical sites, and cultural icons that warrant preservation.
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The commercial centre building, commonly known as the ‘Shark Jaw’ (Ham Ca Map) building, at Dong Kinh Nghia Thuc Square by Hoan Kiem Lake. (Photo: VNA) |
Hanoi – Vice Chairman of the Hanoi People’s Committee Duong Duc Tuan has requested a renovation plan for the eastern side of Hoan Kiem Lake, envisioning it as a special square and park zone.
The renovation project will involve extensive surveys to assess key architectural landmarks, historical sites, and cultural icons that warrant preservation. The aim is to propose new functions for the facilities to ensure they blend harmoniously with the area’s scenic landscape and historical significance.
On March 11, Tuan instructed the Department of Finance to swiftly establish a working group responsible for planning and revamping the Hoan Kiem Lake area, including the iconic Dong Kinh Nghia Thuc Square. It must draft a document on the investment policy for the special square and park zone and submit to the permanent members and the Standing Board of the municipal Party Committee by March 13, 2025.
To support the plan, the Department of Agriculture and Environment has been assigned to provide a detailed 1:500 scale topographic map of the area for the Hoan Kiem district People’s Committee and the Hanoi Urban Planning Institute. Additionally, the department will compile cadastral data to facilitate site clearance, compensation, and support mechanisms. Adjustments to land use plans should also be proposed to ensure seamless project implementation.
The project will also include a three-level underground space beneath the eastern side of Hoan Kiem Lake. This underground development will connect to the C9 station of the Nam Thang Long – Tran Hung Dao metro line. Measures will be taken to safeguard nearby heritage structures during the construction process, while functions for underground spaces will be proposed to optimise land use and meet public demand.
Tuan urged all departments to accelerate their proposals to execute the project. The development will unfold in two phases: the initial phase will involve the construction of the above-ground park and square using public investment, while the second phase will introduce underground facilities integrated with the C9 metro station following the Transit-Oriented Development (TOD) model.
To address the needs of displaced residents, the Department of Agriculture and Environment has been tasked with proposing maximum compensation policies. Eligible households will be offered resettlement land in the outlying district of Dong Anh. Meanwhile, resettlement housing will be sold to those not qualifying for land compensation.
In anticipation of resettlement demand, the city is fast-tracking a review of approximately 100ha of land in Dong Anh district to ensure sufficient space for resettlement efforts linked to this and other major development projects in Hanoi.
Companies
Zebra Technologies announces new strategy for 2025 in Vietnam
Published
14 hours agoon
March 12, 2025Zebra Technologies Corporation, a global leader in digitising and automating frontline workers, is looking to expand in Vietnam by anchoring on an extensive network of partners, continued investment, and a comprehensive portfolio of solutions.
The company announced its 2025 strategy for Vietnam with the three pillars at its Regional Partner Summit 2025 held in Danang on March 5, underscoring its commitment to empowering partners and customers in Southeast Asia.
Talking to VIR at the event, Christanto Suryadarma, sales vice president for Southeast Asia, South Korea, and Channel APJeC at Zebra Technologies, said, “We are seeing significant interest and opportunities for Vietnam to leapfrog in technology adoption. We are continuing to invest in enabling our customers in Vietnam to access the right solutions. That is our primary investment.”
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Christanto Suryadarma, sales vice president for Southeast Asia, South Korea, and Channel APJeC. Photo: PV |
“We are continuously investing in training local Vietnamese partners on how to help customers digitise and automate. This is an ongoing investment. We conduct training sessions, provide demo units, and run proof-of-concept projects,” he added.
With a comprehensive portfolio of solutions, including everything from simple scanning devices to mobile computers, tablets, RFID, and machine vision, Zebra offers tailored solutions to meet the diverse needs of businesses in Vietnam to excel in a digital era.
Suryadarma noted, “Overall, our investments focus on strengthening our presence, expanding our capabilities, and enabling knowledge transfer. We equip our team and partners with the expertise they need so that when they engage with customers, they can offer well-prepared solutions.”
Zebra now has strong partners across Vietnam, as well as Vietnamese companies operating internationally. The company also has a repair and maintenance depot in Vietnam, where it has invested in training local workers.
Zebra opened its first service centre in Ho Chi Minh City in 2021. In 2022, Zebra expanded the centre to meet rising demand for printers, adding support for desktop, mobile, label, and industrial printers. Collaborating with distributors like SMC and Elite Technology, Zebra has developed a diverse partner ecosystem in Vietnam.
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Christanto Suryadarma, sales vice president for Southeast Asia, South Korea, and Channel APJeC at Zebra Technologies. Photo: PV |
“Vietnam is a crucial market for Zebra. Our strong team and extensive certified partner network are dedicated to delivering industry-specific solutions to our customers,” said Suryadarma. “Leveraging our global expertise and innovative solutions, we aim to support all companies operating in Vietnam, across sectors like manufacturing, retail, transportation, logistics, and healthcare, to overcome challenges and achieve digital transformation.”
The 2025 strategy shows Zebra’s long-term commitments in Vietnam. According to Zebra Technologies, its strategy is deeply linked to megatrends – external factors that shape the tech industry. These include mobility and cloud, AI, digitalisation and the Internet of Things, e-commerce, and automation.
To continue offering a comprehensive portfolio of advanced solutions, innovation is at the heart of Zebra Technologies where it invests heavily in business development and research and development. Last year, the company’s revenue was approximately $5 billion, of which it allocated about 10 per cent towards innovation.
“Innovation allows us to continuously develop new technologies and solutions that address real-world challenges. By leveraging mobility, cloud computing, scanning, RFID, and other technologies, we can provide real-time tracking and insights to meet the growing business demands of optimising workflows, improving efficiency, and enhancing decision-making,” the Zebra representative noted. “Our goal is to seamlessly connect all these elements – assets, people, and activities – through enterprise mobile computing. The more we can connect frontline workers, the better we can enhance business operations.”
Commitment to innovation has positioned Zebra Technologies as the leader in rugged mobile computing. While consumer mobile computing – laptops and smartphones – is widely used, Zebra dominates the enterprise mobile computing space, particularly in rugged devices designed for business-critical operations.
Another area where the company is very strong is data capture. Today is the era of AI. But for AI to work effectively, it needs data—clean, accurate data. As the company specialises in data capture, it is in a strong position to align with AI-driven market trends.
Along with data capture, the company is also the leader in barcode printing. Many businesses need barcode labels. These labels are used in countless industries. In Vietnam, for example, it’s becoming common in restaurants where instead of taking orders manually, customers simply scan a barcode on the table to access the menu.
Another area where Zebra holds the number one position is mobile RFID. RFID stands for radio frequency identification. This is a fast-growing business, and today, the world consumes approximately 30 billion RFID tags annually.
Key industry trends for 2025
Manufacturing, transport and logistics, and retail are the areas where Zebra is deeply involved.
Suryadarma said that manufacturing is a major industry in Vietnam. Zebra’s machine vision and AI solutions can significantly enhance manufacturing operations. He sees a lot of potential in helping businesses improve efficiency and productivity through automation and smart technology.
“We recognise the trends in this sector. Now, we are seeing many economic uncertainties, trade discussions, and shifting policies that are prompting manufacturers to focus on incremental, scalable improvements rather than sweeping transformations. Manufacturers want to automate their processes, but they are looking for cost-effective modernisation strategies. This requires new approaches and scalable automation tools for success,” he admitted.
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Zebra Technologies’ 2025 Regional Partner Summit in Danang. Photo: PV |
In transport and logistics, companies are now balancing onshore and offshore solutions while also ensuring sustainability. They would rather not generate excessive waste; instead, they want to reduce carbon footprints and implement greener supply chain practices. This shift requires greater visibility and real-time insights.
In logistics, the market sees a growing interest in AI, RFID, real-time tracking, and new visibility technologies. These are becoming increasingly important. For example, Vietnamese company Nhat Tin Logistics has implemented Zebra’s scanning solutions, improving speed, efficiency, and productivity in scanning and delivery operations.
Moving on to retail, customer expectations and labour shortages are two major challenges in this industry. This is where technology is making an impact.
“With Vietnam’s large population, retail is booming. We’re seeing a lot of automation in retail. For example, many cafés now use digital solutions – customers scan a QR code, place orders, and receive their items seamlessly. Many retailers have already adopted RFID to enhance customer experience. While we cannot disclose specific names due to customer confidentiality, we can confirm that RFID adoption is happening in Vietnam,” he added.
An example is in warehouses. When people walk into a warehouse, they do not just see shelves of products, they see workers constantly moving, picking, sorting, and delivering items. These workers are the backbone of warehouse operations. Similarly, in hospitals, nurses and doctors are on the front line, caring for patients and ensuring smooth medical operations.
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Many regional partners joined the summit. Photo: PV |
Healthcare is another key area of growth. Similar to other countries, people in Vietnam increasingly expect better healthcare services, both from government and private hospitals. Digitalisation plays a crucial role in improving healthcare efficiency.
“With nearly 8 per cent GDP growth last year, the challenge now is how to push Vietnam’s growth even further. Maybe one day, Vietnam can reach 10 per cent or even higher. It is not impossible, but it comes down to the people, the partnerships, and strong leadership across all organisations,” he noted.
Vietnam is to work with the United States on ways to reach a trade balance and circumvent the latter’s heavy tariff imposition.
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Vietnam is improving local products and origin of goods information, photo Le Toan |
Later this week, Minister of Industry and Trade Nguyen Hong Dien will fly to the US to work with its Department of Commerce on further materialising the comprehensive strategic partnership forged in 2023.
“The main reason for the trade imbalance between the two countries comes from the complementary nature of the two economies, which is due to the export and foreign trade structure of the two countries,” said Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan at last week’s governmental press conference in Hanoi.
“Vietnamese exports to the US compete with those from third nations, not directly with US enterprises in the US market. Meanwhile, they even also create conditions for American consumers to use Vietnamese goods at cheap prices,” Tan added.
According to the Ministry of Industry and Trade (MoIT), Vietnam is an open economy which pursues a free trade policy. The tariff difference on US goods is not high and may decrease in the future because Vietnam will reduce most favoured nation tariffs on many types of goods.
“Therefore, a number of US products with high competitive advantages such as automobiles, agricultural products, liquefied natural gas, and ethanol will benefit from this policy,” Tan said. “At the same time, it will create positive import flows from the US, contributing to improving the trade balance between the two.”
In addition, there is an ongoing policy dialogue on trade and investment between the two countries under the Vietnam-US Trade and Investment Framework Agreement founded in 2007. Therefore, existing problems in bilateral trade and economy, if any, will be proactively discussed through the US-Vietnam Council on Trade and Investment.
This is a mechanism that has created a common vision, contributed to the long-term direction, and stabilised the development of bilateral economic and trade relations, the MoIT said.
In addition, the Vietnamese government has taken the initiative in assigning ministries and sectors to review obstacles to the US “on the basis of fair trade, reciprocity, in accordance with the law, harmoniously and satisfactorily meeting the interests of all parties”, the ministry added.
“Vietnam will also create better conditions for US investors to participate in the process of forming and developing key industries in Vietnam, especially key energy projects involving new energy, hydrogen, and nuclear power,” Tan explained. “This will create a premise to increase imports of liquefied natural gas, fuel, machinery and equipment, and technology from the US, thereby contributing to improving the trade balance between the two countries.”
Via the US Embassy to Vietnam and the country’s counterpart in the US, the MoIT has sent a message that Vietnam wishes to maintain and develop a harmonious and sustainable economic and trade relationship of mutual benefits with the US. At the same time, Vietnam reaffirmed that it has and will never create any policy that hurts labourers or the national security of the US.
Since returning to office in January, US President Donald Trump has launched a sweeping series of tariffs, marking a return to the aggressive trade policies of his first term. The measures reflect the administration’s broader effort to protect domestic industries and address what the president views as unfair trade practices.
According to Asia Briefing, a subsidiary of Dezan Shira & Associates, as a major supplier of goods to the US, the tariffs could significantly impact Vietnamese exporters.
“It is also possible that Vietnam will become the target of country-specific tariffs, as the country has a large trade surplus with the US and has previously been accused by the US administration of engaging in unfair trade practices,” Asia Briefing said. “However, Vietnam may be able to mitigate the impact by striking a deal with the US, especially if it agrees to increase imports of American goods or ease market access for businesses from the US.”
However, Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, told VIR that it was too early to gauge the impact of tariffs. In the past month, Vietnamese officials have repeatedly said they would seek compromises with the US on trade.
“This is likely to include promises of additional aeroplane purchases, boosting Vietnam’s imports from the US of liquefied natural gas, better market access for American agricultural products, and an adjustment of some regulations to make it easier for US companies to access the Vietnamese market,” Sitkoff said.
He suggested that Vietnam should take some necessary actions, including creation of more transparency in the origin of goods and increasing local content, and doing more to solve burdens and barriers faced by American companies and investors here.
Vietnam’s exports to the US reached $119.6 billion last year and $19 billion in the first two months of 2025.
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