Development Journey

Implementing the the directive of Vietnam Deputy Prime Minister Le Minh Khai detailed in Document No.471/TTg -DMDN dated 27 May 2023 on “approving the State ownership representative rights at Vietnam Pharmaceutical Corporation from Ministry of Health to State Capital Investment Corporation,” on 2 June 2023, Ministry of Health and State Capital Investment Corporation signed the Memorandum of Transfer of the State Ownership Representative Rights at Vietnam Pharmaceutical Corporation. As per this transfer, the current State ownership representative at Vietnam Pharmaceutical Corporation is State Capital Investment Corporation (SCIC).

Implementing the policies of the Party, State and Government of Vietnam, during this period, Vietnam Pharmaceutical Corporation has completed the equitization at all member companies and the parent company - Vietnam Pharmaceutical Corporation. On December 8, 2016, Vietnam Pharmaceutical Corporation officially operated under the joint stock company model. On May 19, 2017, Vietnam Pharmaceutical Corporation registered to trade shares on UPCOM platform with the stock symbol DVN. This marks the start of a new chapter for Vietnam Pharmaceutical Corporation, becoming a joint stock enterprise that is autonomous, responsible, and fairly competes in the context of ever-increasing international integration.

After equitization, Vietnam Pharmaceutical Corporation - JSC focuses on sustainable development, improving quality, accompanying its member enterprises in striving to become a leading enterprise in pharmaceutical distribution with high technology level and, owner of prestigious brands in the country, standing in the group of leading economic groups/corporations in Vietnam. The Corporation has been implementing appropriate investment strategies, together with its member companies to quickly access modern and cutting-edge technologies; At the same time, the Corporation supports its member companies in finding and transferring products, investing in projects, building manufacturing factories, and investing in science and technology in the direction of applying new and high technology.

Besides its duty to manage manufacturing and business, Vietnam Pharmaceutical Corporation clearly demonstrates its role as the only corporation of Vietnam’s pharmaceutical industry, implementing the key tasks assigned by the State and the Ministry of Health of Vietnam. During the COVID-19 pandemic, with the commitment to join hands with the Government and people of Vietnam in efforts to prevent, combat and control the pandemic, the Corporation has directed its three subsidiaries, member companies, and affiliated companies to fully prepare infrastructure and warehouses to receive and preserve goods, medical equipment and supplies to prevent Covid-19 according to the direction of the Vietnam National Steering Committee for COVID-19 Prevention and Control and of Ministry of Health.

To simplify administrative procedures and quickly and timely receive, preserve and dispense medical supplies, equipment and pandemic prevention drugs, Vietnam Pharmaceutical Corporation has proposed to and obtained the approval from the Ministry of Health for the Corporation to sponsor all expenses associated to the receiving, storing, preserving, insurance costs and other costs related to the preservation of goods, equipment and medical supplies for Covid-19 pandemic prevention and control. In addition, the Corporation also coordinates with member companies, through practical measures, to contribute and sponsor necessary medical supplies for Covid-19 prevention in localities and establishments.

To implement the Decree No. 25/2010/ND-CP dated March 19, 2010 of the Government, Vietnam Pharmaceutical Corporation has transformed into Vietnam Pharmaceutical Corporation - a single-member limited liability company, applying parent-subsidiary company operation model according to Decision No. 2335/QD-BYT dated June 30, 2010 of the Minister of Health.
In line with the international integration tendency, especially when Vietnam participated in the World Trade Organization (WTO) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the market now opens to not only Vietnamese pharmaceutical enterprises but also many foreign enterprises, while the latter have strong competitive advantages in terms of products, marketing as well as strong financial potential over domestic ones. However, this is an opportunity and an open door for Vietnam’s pharmaceutical industry in general and member companies of Vietnam Pharmaceutical Corporation in particular to enhance investment, improvement and standardization of manufacturing standards and product quality. Seizing this opportunity, Vietnam Pharmaceutical Corporation and its member companies have taken preparatory steps, focusing on accessing new technologies, improving manufacturing lines and manufacturing processes to produce high quality products, not only serving domestic demand but also exporting abroad.

Implementing Decision No. 90/TTg dated March 7, 1994 of the Vietnam Prime Minister on continuing the restructuring of state-owned enterprises, on March 30, 1996, the Vietnam Minister of Health decided to establish the Vietnam Pharmaceutical Corporation on the basis of inheriting the organization, apparatus, staff and infrastructure of the Vietnam Union of Pharmaceutical Enterprises. Upon its establishment, Vietnam Pharmaceutical Corporation was assigned to immediately implement the project "Master Plan for Investment and Development of Vietnam's Pharmaceutical Industry from 1996 - 2010", comprising 11 thematic topics. During this period, Vietnam Pharmaceutical Corporation has provided direction for effective operation in its member companies and companies having the Corporation’s contributed capital, successfully completing manufacturing and business duties as well as obligations to the Government of Vietnam, creating jobs for nearly ten thousand employees, promoting the continuous growth of the Corporation. The Corporation has actively assisted and created many favorable conditions for its member companies to exceed their targets in annual plans, with an average revenue growth rate over this period reaching 15-18%. From 2001 onwards, a number of the companies who began to equitize have demonstrated robust growth in manufacturing, revenue from manufacturing of these enterprises accounted for 60% of the manufacturing revenue of the entire Corporation. During this period, Vietnam Pharmaceutical Corporation has completed the equitization in 10 enterprises. Equitization has resulted in the formation of joint stock companies with multi-ownership, high autonomy, robust organizational structure, transparent management mechanism suitable to the market economy, promoting the role of shareholders, creating motivation for the overall development of the businesses and the industry. After equitization, the businesses have boldly invested in infrastructure to comply with international standards such as GMP-WHO, GSP, GDP, etc.
A particularly important assignment that Vietnam Pharmaceutical Corporation has completed is implementing solutions to stabilize drug prices and national drug reserves. In order to accomplish this assignment, the Corporation and its member companies have strictly followed the directions of the Vietnam Prime Minister and the Ministry of Health, continuing to implement fundamental solutions to stabilize drug prices such as: enhancing manufacturing to ensure the components, type, quantity and quality of drugs; balancing between supply and demand of preventive and curative drugs for the people; strengthening management; minimizing circulation costs; and ensuring adequate medicine supply in cases of adverse events such as natural disasters, storms, floods, and epidemics.

To adapt to the economic model in the new period, the Council of Ministers (now the Government of Vietnam) issued Decree 79-HDBT dated May 4, 1982 on the establishment of the Union of Vietnam Pharmaceutical Enterprises directly under the Ministry of Health. Vietnam Union of Pharmaceutical Enterprises includes pharmaceutical companies and enterprises nationwide, including drug manufacturing enterprises, drug distribution, import-export companies, and foreign-invested companies.
To accomplish its important mission, the Vietnam Union of Pharmaceutical Enterprises has determined a strategy for the pharmaceutical industry consisting of the following: Manufacturing is the key, in which the manufacturing of finished drugs, mainly generic drugs, is put at top priority, followed by franchised drugs and drugs from medicinal herbs. Forming a foundation on medicinal materials: promoting the strengths of domestic medicinal materials, forming raw material areas drug manufacturing in the country and for export purposes. Scientific research is a focus: prioritize investment in research and apply results to manufacturing and trading. Leveraging import and export as the driving force: exporting medicinal herbs that Vietnam has advantage, essential oils, including unique finished products, to generate a source of foreign currency for imports. Thanks to this strategy, the manufacturing establishment could in parts handle their own difficulties, boosted manufacturing, created more products, secured jobs for employees, and the drug scarcity situation has improved significantly, contributing to a sufficient supply of essential medicines for the people.

On April 1, 1971, responding to the request to centralize management to strengthen manufacturing, distribution and promptly provide aid to the war frontline, the Vietnam Ministry of Health decided to establish the Pharmaceutical Corporation by merging the Department of Pharmaceutical Distribution, Department of Medicinal Materials, Department of Manufacturing Management and the business unit in charge of manufacturing chemical products, medical equipment, and technical supplies for manufacturing and trading under the Department of Materials and Fundamental Construction
Established in the midst of Vietnam’s national sovereignty protection war against the U.S., the Pharmaceutical Corporation directed its member companies and enterprises to build a network of pharmacies and drugstores to ensure the supply of essential drugs for the frontline and medical examination and treatment for the people.
Upon the country’s unification, the Pharmaceutical Corporation participated in taking over medical and pharmaceutical establishments in Southern Vietnam, merging more than one hundred medical preparation and manufacturing facilities into 10 new enterprises. The Pharmaceutical Corporation focused on operating and directing its member facilities and enterprises to promote research and development of medicinal herbs cultivation areas, research and prepare many types of drugs such as anesthetics, resuscitation drugs, antibiotics, medicine for gastralgia, cardiovascular diseases, blood pressure conditions, etc.