Brighter prospects of the pharmaceutical industry in 2022

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Evaluation of internal and external factors affecting business results of the enterprise. Source: Vietnam Report.

In the this published list, many names honored in 2020 continue to be voted for in 2021 such as: DHG Pharmaceutical Joint Stock Company; Traphaco Joint Stock Company, Pymepharco Joint Stock Company, Domesco Medical Import-Export Joint Stock Company, Imexpharm Pharmaceutical Joint Stock Company, Binh Dinh Pharmaceutical and Medical Equipment Joint Stock Company (the Top 10 prestigious pharmaceutical manufacturing companies credited in 2021); Central Pharmaceutical Joint Stock Company 2, Vietnam Pharmaceutical Corporation – JSC, Hanoi Medical Equipment Pharmaceutical Joint Stock Company, CPC1 Central Pharmaceutical Joint Stock Company, Da Nang Pharmaceutical - Medical Equipment Joint Stock Company (the Top 10 prestigious pharmaceutical trading and distribution companies, medical equipment and supplies in Vietnam in 2021); Traphaco Joint Stock Company, OPC Pharmaceutical Joint Stock Company, Nam Ha Pharmaceutical Joint Stock Company, Tam Binh Pharmaceutical Manufacturing and Trading Company Limited (the Top 5 prestigious Vietnamese traditional medicine companies in 2021).

Notably, in the 2nd category of Top 10 prestigious Vietnamese pharmaceutical distribution and trading; medical equipment and supplies companies in 2021, at the top of this list is a "rookie" (Vietnam Vaccine Joint Stock Company), but the champion of this position in 2020 "disappears" without traces in the ranking (Vimedimex Pharmaceutical Joint Stock Company).

In the third category of Top 5 prestigious Vietnamese traditional medicine companies in 2021, Nhat Nhat Co., Ltd. has replaced Hoa Linh Pharmaceutical Co., Ltd (2020). This change shows that businesses that can adapt flexibly to the developments of the Covid-19 pandemic and has drawn great attention from consumers.

The global outbreak of the Covid-19 pandemic has made the whole world realize the paramount importance of healthcare and the healthcare industry in unprecedented ways. On the one hand, it highlights the important role the pharmaceutical and innovative drugs industry plays in ensuring global safety and security. On the other hand, it also exposes gaps in the global economy, including in healthcare services.

Amid the negative impact of the pandemic, the pharmaceutical industry faced many difficulties: the supply chain disruption, the rising prices of raw materials and transportation, the habit changes, the demand for drugs, along with the government’s tightening prevention regulations leading to the limitation of people accessing to treatment.

As revealed in the survey Vietnam Report in November 2021 with pharmaceutical enterprises on the impact of Covid-19 on the pharmaceutical industry in 2021, 57.14% of enterprises assessed that their business situation deteriorated slightly; 14.29% of enterprises assessed that their business situation was not affected and only 7.14% of enterprises rated their business situation slightly better.

During the fourth Covid-19 wave and social distancing, many businesses still reached capacity from 100% to 120%, even close to 140%, but many others fell behind, due to the closure and temporary suspension of production, and the capacity was only 60%-80%.

Businesses that are still doing well say that their salvation is thanks to internal factors, speed of response and adaptation, in which, the application of digitalization helps businesses continue to operate. In particular, their employees still work remotely, while the company can still access classified data to operate. Besides, they always focus on research and development of products; financial potential of the enterprise; the ability to manage risks in the enterprise; further investment in technology innovation and operational process improvement; and marketing activities.

Given the growth potential of the pharmaceutical industry in 2022, experts and businesses all believe that the ability to control the disease is still the top factor. Despite the current new strains, the Government is pushing to complete vaccine coverage by the end of 2021, adding a new economic stimulus package, shifting the strategy from " Zero Covid" to "living safely with the virus" under Resolution 128/NQ-CP will help the economy in general and the pharmaceutical industry in particular recover and create growth momentum in 2022.

Experts and businesses both believe that the growth prospects of the pharmaceutical industry in 2022 will have more positive signals than in 2021. As estimated, the survey results in 2021 are unable to get breakthroughs and it is difficult to distinguish among businesses, the survey results in 2022 were outstanding, more positive than in 2021.

Particularly, 62.5% of experts and businesses assess the positive growth, slightly better, 12.5% choose strong growth, and only 6.25% think growth will be slightly lower than in 2021.