Local producers will possibly face fiercer competition from foreign firm. How did they prepare to secure their market share?
Recent surveys in the Mekong Delta region shows that more than 50% of drugs used in local health centres are domestically-produced. Good quality products and reasonable prices are the elements that make local drugs more competitive.
However, so far Vietnamese pharmaceutical products can only meet 50% of domestic demand. An additional 50% are imported, costing billions of dollars each year.
The possible TPP also means domestic enterprises are facing pressure from foreign competitors. Being aware of those challenges, over the past years pharmaceutical companies have continuously invested in their manufacturing operations and technology to better secure their foothold in the local market.
"The medicine industry requires state-of-the-art technology. Without meeting those standards, our products can’t meet customer expectations. To better prepare for possible TPP, we have invited foreign experts to join our production process and pursue research and development activities to create better products for consumers", said Dr. Pham Thi Viet Nga, General Director, Hau Giang Pharmaceutical Company.
Besides investing in human resources and implementing modern production lines, the companies are stepping up distribution channels and the promotion of brands nationwide. Their vision is already receiving support local departments of industry and trade.
Currently there are 178 pharmaceutical businesses operating in Vietnam, with many of them exporting their products to other markets such as Asia or Africa. The industry also experienced high average double-digit growth in domestic market. These figures, nevertheless, are believed to be further improved if domestic pharmaceutical industry can prepare and make good use of opportunities from upcoming free-trade agreements.
