Vietnam is believed to be one of the largest pharmaceutical markets in Southeast Asia. Vietnam’s pharmaceutical market is also among the 17 fastest-growing markets because the population is aging rapidly. According the General Statistics Office, the number of Vietnamese people aged 65 and over reached 7.4 million in 2020, and accounted for nearly 7.9% of the total population. The older the population is, the higher the demand for health care will be. This will boost Vietnam’s pharmaceutical industry.
According to the latest statistics, Vietnam’s per capita spending on medical products increased by 37.97 USD in 2015, and by 56 USD in 2017 and the figure is forecast to experience an increase of at least 14% per year until 2025.
It can be said that Vietnam's pharmaceutical industry is currently developing rapidly with an improvement in both quantity and quality. It is expected that the value of this industry will grow double-digit in the next 5 years, reaching 7.7 billion in 2021 (according to statistics from the Drug Administration of Vietnam), and reaching 16.1 billion USD in 2026 (according to IBM).
Despite the impact of the Covid-19 epidemic on the economy, the pharmaceutical industry seems to to benefit a lot from the pandemic due to the increasing need for immune-boosting drugs, vitamins, pain relievers - fever reducers, cough medicines, eye drops - nose drops.
DHG Pharma was formerly known as September 2 Pharmaceutical State Enterprise, established on September 2, 1974. After April 30, 1975. the People's Committee of the Southwest Region was dissolved, and the 2/9 Pharmaceutical Factory was assigned to the Hau Giang Department of Health for management. In 1982, Hau Giang Pharmaceutical Joint Enterprise was established on the basis of merging 3 units: 2/9 Pharmaceutical State Enterprise, Level 2 Pharmaceutical Company, Pharmaceutical Station. Six years later, Hau Giang Provincial People's Committee decided to merge Medical Equipment and Supplies Supply Company and Hau Giang Pharmaceutical Joint Enterprise. On September 2, 2004, the company was equitized and became Hau Giang Pharmaceutical Joint Stock Company.
Regarding business performance in 2020, the revenue of DHG Pharma reached 183 million USD. As of December 31, 2020, the total assets of the company was about 192 million USD, an increase of 7% compared to the beginning of the year. In particular, cash and short-term financial investment reached 93 million USD, accounting for 48% of total assets; fixed assets reached 37 million USD, accounting for 19% of total assets; inventory reached 36 million USD, accounting for 18% of total assets.
According to Vietnam Credit's assessment, DHG is rated A with very low credit risk and is believed to be able to fully satisfy contractual financial commitments.
In 2001, Vietnam Fumigation Joint Stock Company was established on the basis of equitization of Vietnam Fumigation Company, a State-owned enterprise established in 1993. Vietnam Fumigation Joint Stock Company is believed to be one of the top ten agricultural pharmaceutical companies in Vietnam with 7% market share. At the same time, the company is also considered as the leading enterprise in the field of providing disinfection and pest control services with more than 80% market share.
In 2020, the company recorded revenue of about 90 million USD, profit after tax of 9 million USD, decreasing 7.6% and increasing 17.1%, respectively, compared to 2019.
Although its profit increased, its 2020’s main operating cash flow recorded a negative value of 2.5 million USD compared to 2019.
As of December 31, 2020, the total assets of the company decreased by 19.4% to only 80 million USD. In particular, inventory was 30.8 million USD, accounting for 38.5% of total assets; short-term receivables was 17.8 million USD, accounting for 22.3% of total assets.
VFC is rated BBB with low credit risk and is believed to be able to fully satisfy contractual financial commitments.
Pymepharco was established in 1989. In May 2006, the company was officially transformed into a joint stock company, which helps it raise capital, expand the scale of production and business, and strengthen the business structure easily.
Currently, the company employs nearly 1,300 officers and employees. From the first 16 products, so far, it has launched more than 350 products, including outstanding-quality products that can replace imported ones.
In 2020, Pymepharco’ revenue reached 88 million USD. Cost of goods sold increased by 7.4%, leading to an increase of 1.3% in gross profit on sales and service provision to 36.5 million USD.
As of December 31, 2020, the total assets of this company had reached 111.6 million USD, up 11.3% compared to the beginning of the year. In which, payable debt was 22.5 million USD.
Pymerpharco is also rated BBB with low credit risk and is believed to be able to fully satisfy contractual financial commitments.
Ha Tay Pharmaceutical Joint Stock Company was established in 1965. The company operates in many different fields such as: Import and export of drugs; Producing and trading in chemicals, medicinal materials, pharmaceutical materials and medical equipment, etc.
Its products include:
Ha Tay Pharmaceutical's revenue in 2020 reached 85 million USD, making it the 4th largest enterprise in the pharmaceutical industry.
The company is rated BB with low credit risk and is believed to be able to fully satisfy contractual financial commitments.
Traphaco Joint Stock Company, formerly known as the Drug Production Department of the Railway Medical Company, was established on November 28, 1972. After many changes, on January 1, 2000, Traphaco Pharmaceutical and Medical Equipment Joint Stock Company officially started operating in the form of a joint stock company with 45% state capital. On July 5, 2001, the company changed its name to Traphaco Joint Stock Company. On November 26, 2008, it was officially listed on Hose.
In 2020, Traphaco JSC achieved positve growth thanks to its flexibility to adapt to the impacts of the Covid-19 pandemic.
Traphaco has achieved the following financial targets:
Consolidated profit reached 8.8 million USD, exceeding 13% of the plan (7.8 million USD), an increase of 19% compared to 2019. Parent company profit reached 6.8 million USD, exceeding 19% of the plan (USD 5.7 million).
Sales of drugs reached 25.2 million USD ~ 102% of the plan (USD 24.6 million), up 7.2% compared to 2019. Sales of traditional medicines still maintained the growth momentum of 19%.
Traphaco is rated BBB by Vietnam Credit with low credit risk and is believed to be able to fully satisfy contractual financial commitments.
Domesco Medical Import-Export Joint Stock Company was established on May 19, 1989. It specializes in research, development, production, marketing and trading of pharmaceuticals, drugs derived from medicinal materials, functional foods, purified drinking water and beverages from medicinal herbs.
In 2020, Domesco's revenue was equivalent to that in 2019, reaching 67 million USD. However, COGS increased slightly by 3.8%, so gross profit decreased by 10.8% to 19.1 million USD.
As of December 31, 2020, the company's total assets reached 63.5 million USD, down nearly 5% compared to that at the beginning of the year.
Domesco is rated BBB by Vietnam Credit with low credit risk and is believed to be able to fully satisfy contractual financial commitments.
Imexpharm Pharmaceutical Joint Stock Company was formerly known as Dong Thap Pharmaceutical Union Enterprise, under the Dong Thap Department of Health, established in September 1983.
Imexpharm recorded 62 million USD in revenue in 2020, down 2%. However, its profit after tax increased by 29%. This is also the highest profit after tax of the company ever.
At the end of 2020, Imexpharm's total assets were more than 91 million USD, up 13% compared to the beginning of the year. In particular, cash, cash equivalents and term deposits reached 6.3 million USD, accounting for 7% of the asset structure.
According to Vietnam Credit's assessment, Imexpharm is rated AA with really low credit risk and is believed to be able to fully satisfy contractual financial commitments.
The company was established in 1975 with the name Central Pharmaceutical Enterprise 24. In 1985, it was merged with the Central Pharmaceutical Enterprise 22, and was renamed Central Pharmaceutical Enterprise 24 - MEKOPHAR.
In 2001, the company officially changed its name to Mekophar Chemical - Pharmaceutical Joint Stock Company with initial charter capital of 36 billion VND.
Mekophar’s revenue in 2020 was 52 million USD, down 1% compared to 2019.
As of December 31, 2020, its total assets reached 65.3 million USD, a slight increase of 2.5% compared to the beginning of the year. The company recorded 10.3 million USD of liabilities, of which total debt accounted for 0.8 million USD. It also had over 5 million USD of long-term unrealized revenue. Meanwhile, equity reached 54.9 million USD, 5.5 times higher than liabilities.
In recent years, Mekophar's profit has continuously declined and showed no sign of slowing down. One of the reasons for this sharp drop in profit came from the sudden increase in administrative and sales expenses, although sales of finished drugs barely grew.
Therefore, the company is only rated BB by Vietnam Credit.
Established in 1960, Nam Ha Pharmaceutical was formerly known as Ich Hoa Sinh Partnership Company. In 2000, the enterprise was equitized and renamed Nam Ha Pharmaceutical Joint Stock Company (NamHa Pharma).
After being equitized, the company invested in a drug production line that meets GMP-ASEAN standards, and a drug testing room that meets GLP-ASEAN. In 2002, Nam Ha Pharmaceutical became one of the first companies to be certified by the Ministry of Health to meet GMP and GLP standards (the first time).
Nam Ha Pharmaceutical recorded revenue of 46 million USD in 2020 and is rated BB by Vietnam Credit.
OPC Pharmaceutical Joint Stock Company, formerly known as TW 26 Pharmaceutical Enterprise, was established on October 24, 1977. It is one of the leading companies in Vietnam in the field of manufacturing and trading pharmaceutical products derived from medicinal herbs.
On February 8, 2002, according to Decision No. 138/QD-TTG of the Prime Minister, Central Pharmaceutical Enterprise 26 - OPC was transformed into OPC Pharmaceutical Joint Stock Company.
In 2020, OPC achieved revenue of 33 million USD. Its profit after tax was approximately 6 million USD. This business is rated BBB by Vietnam Credit.
*Credit ratings scale
- An obligor rated 'AA' has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree.
- An obligor rated 'A' has strong capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories.
- An obligor rated 'BBB' has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.
- An obligor rated 'BB' is less vulnerable in the near term than other lower-rated obligors. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitments.
Vietnam Credit
