HCMC
VNBusinessNews – Pharmacy companies in HCMC are showing keen interest in developing chains of drugstores rather than isolated ones to better compete and benefit more from distributing imported drugs now that foreign traders can directly import medicines into the country, an official said.
Drugstore chains played an important role in the local medicine market because they contributed to the healthy development of the market.
Pham Khanh Phong Lan, deputy director of HCMC’s Health Department, said last Thursday that several drugstore chains have appeared in the city for such aims.
“At least 20 companies are now building drugstore chains in the city,” she said.
They are mainly private and joint stock companies like Saigon Pharmaceutical Company, Minh Phuc Ltd, V-Phano Pharmacy, Mai Linh Corporation, Eco Pharmacy Company, Dong Duong Pharmacy and My Chau Ltd. Co. All their drugstores meet the Good Pharmacy Practice standards, according to Lan.
Some popular chains are IC Pharmacy owned by Dong Duong Ltd Co, Eco owned by Eco Pharmacy co, My Chau of My Chau Ltd, V-Phano of V-Phano Pharmacy, and Y Duc of Minh Duc Ltd. Co.
Lan said that drugstore chains played an important role in the local medicine market because they contributed to the healthy development of the market.
Under Vietnam’s commitments made to the World Trade Organization, foreign drug enterprises, including not directly investing in Vietnam, have been permitted to import medicine into Vietnam since January 1, a practice earlier assumed by local companies only.
The development of drugstore chains will provide local pharmacy companies an edge as they can buy imported medicines at wholesale prices for distribution within their chains.
“Drugstore chains will have direct deals with authorized suppliers. Thus, this can help cut costs that should be inflated by the participation of intermediary distribution channels, resulting in lower prices for end-users,” Lan said.
In addition, drugstore chains can provide medicines with clear origins from authorized suppliers, which help beat the circulation of fake medicinal products on the market, she added.
“Thus, the development of drugstore chains should be encouraged, replacing the traditional form of drugstores owned by individuals or family businesses,” she said.
Anh Nguyen, director of My Chau Ltd. which owns six drug stores of the same brand name My Chau in the city, said that the business model was quite popular in foreign countries because it created a healthy medicine market and offered added value services like medicine consultant and medicine usage surveillance.
“Drugstore chains now can bring a good profit and we have a plan to open more in the city,” she said.
Like My Chau, the Eco Pharmacy Ltd Co on Thursday opened two drugstores in District 10.
Meanwhile, Minh Duc Ltd Co. who owns Y Duc drugstore chain, also declared that it would develop more stores in the city this year. Up to date, Minh Duc has about 10 drugstores that are developed at a cost of over VND2 billion each.
Similarly, Dong Duong Pharmacist Joint Stock Company which owns IC Pharmacy drugstore chain, also said it planned to develop a far-reaching IC Pharmacy retailing chain by 2012, including central drugstores in big cities like Hanoi, Hai Phong, Danang, HCMC, and Can Tho, and some other provinces nationwide with the initial capital for this period at US$12 million.
The Drug Administration of Vietnam has recently reported that the local drug market has seen a growing number of foreign companies involved. The year 2005 only saw 270 foreign companies operating in the local medicine market, but the figure rose to 370 in 2007. (SGT)
