Luận văn thạc sĩ chiến lược phát triển thuốc thảo dược tại công ty cồ phần traphaco

Before the general reality of the pharmaceutical manufacturing enterprises inVietnam, and with the desire to offer a highly practical business strategy helping toeffectively take advanta

LUẬN VĂN THẠC SĨ CHIẾN LƯỢC PHÁT TRIỂN THUỐC THẢO DƯỢC TẠI

CÔNG TY CỒ PHẦN TRAPHACO

“STRATEGIC DEVELOPMENT HERBAL

MEDICINES OF TRAPHACO JOINT STOCK

COMPANY

ACKNOWLEDGEMENTS 1

OVERVIEW 2

CHAPTER I: 4

GENERAL THEORY OF BUSINESS STRATEGY 4

1.1 The concept and the role of the business strategy to the enterprises: 4

1.1.1 Some concepts of business strategy: 4

1.1.2 Kinds of strategy 5

1.1.3 The role of business strategy 6

1.1.4 The models of business strategies: 7

1.1.4.1 Linear strategy model: 7

1.1.4.2 Adaptation strategy model 7

1.1.4.3 Interpretive strategy model 7

1.2 The process of planning the overall business strategy 8

1.2.1 Strategic planning (choosing missions and major targets of the enterprise) 8

1.2.1.1 Vision: 9

1.2.1.2 Mission: 9

1.2.1.3 Business goals: 10

1.2.2Analysis and evaluation 10

1.2.2.1 External environment: 10

1.2.2.2 Analysis of the enterprise's internal environment: 10

1.2.3 Choosing the business strategy: 12

1.2.3.1 - BCG method: 12

1.2.3.2 - SWOT analysis method: 13

1.2.3.3 – SPACE matrix method SPACE matrix method 14

1 3 The stage of checking the strategy 15

1.4 Using the strategy analysis techniques to Analysis the current situation of the enterprise 15

CHAPTER II: 17

THE CURRENT BUSINEES SITUATION OF TRAPHACO HERBAL MEDICINE 17

2.1 Overview of Traphaco joint stock Company: 17

2.1.1 General introduction about the company 17

2.1.2 Development process 18

2.1.2.1 Major lines of business: 18

2.1.2.2 Operational status: 18

2.1.2.3 Facilities 21

2.1.3 Summary results of operations TRAPHACO 21

2.1.3.1 Business situation 22

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2.1.3.2 Public investment 22

2.1.3.3 Work Management 23

2.1.3.4 The listing and share issuance 23

2.1.3.5 Other work 24

2.2 Status of active pharmaceutical product development east of the Corporation Traphaco 24

2.2.1 Current situation of Marketing: 24

2.2.2 Development of herbal medicines: 24

2.2.2.1.Phamaceutical products portfolio: 25

2.2.2.2 Product category 25

2.2.2.3 Quality and Indications of the product: 26

2.2.2.4 Packaging, labels 27

2.2.3 The advantages and difficulties in product development activities of large pharmaceutical companies shares Traphaco: 27

2.2.3.1 Advantages: 27

2.2.3.2 Difficulties: 28

2.3.1 Analysis of external environmental factors: 28

2.3.1.1 Macro environmental analysis PESTLE model 28

2.3.1.2 Environmental sector analysis 30

2.3.1.3 Competitive Analysis of internal branches in the model of Michael Porter 33

2.3.2 Analysis the internal environment according to the model of value chain: 39

2.3.2.1 Human resource Management 39

2.3.2.2 Infrustration 41

2.3.2.3 Research and development 41

2.3.2.4 Technology: 42

2.3.2.5 Trademark and Marketing activities 43

2.3.2.6 Analysis of financial resource 46

2.3.2.7 Strengths and weaknesses 51

2.3.3 Analysis the model of SWOT, BCG and Space matrix: 53

CHATER III 58

STRATEGY FOR THE DEVENLOPMENT OF HERBAL MEDICINES AT TRAPHACO IN THE PERIOD OF 2011 - 2015 58

3.1 Strategy for the development of herbal medicines at Traphaco in the period of 2011-2015: 58

3.1.1 Choose the strategy 58

3.1.2 Strategic target and orientation 61

3.1.2.1 Vision and strategic target of TRAPHACO 61

3.1.2.2 Strategic orientation 63

3.1.2.3 Solutions to implement the strategy 65

3.1.2.4 Deploying route 71

3.2 Recomendation 73

3.2.1 For the Traphaco Corp 73

3.2.2 For the Vietnam Pharmacy Management Department 74

CONCLUSION 75

REFERENCES 76

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To complete our Capstone Project Report, Group 5 – Class M0709 would like

to send our sincerely thanks to:

- The professors, and the doctors of the master training program in Master ofBusiness Administration (MBA), held by Griggs University collaborating with theETC, who taught and guided us during the training process

- The academic staff of the Griggs University who guided us in the process ofdoing the research;

- The officers and staff of the ETC belonging to the Postgraduate Department,Hanoi National University;

We also would like to send our sincerely thanks to Traphaco Corporation, theleader board of the Corporation, especially Ms Vu Thi Thuan, Chairman ofManager Board and CEO of Traphaco Corporation who enthusiastically supported

us in the process of implementing the Capstone Project Report

Group Members:

1 Nguyen Thi Muoi

2 Le Thanh Ha

3 Tran Dinh Dong

4 Tran Huong Giang

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The 21st century marked the changing of the world in the fields of economy,society, politics, science and technology many new technologies has continuouslylaunched, the regulations on controlling the quality are becoming tighter and tighter,the environment has many unexpected changes, the impact of the spread financialcrisis causing severe consequences in many countries, Besides, the economy ofthe world is shifting to the trend of global integration, so the operations of theenterprises must be suited to the trend of the global economy, and the regional andinternational integration by searching and promoting comparative advantages to win

in an increasingly fierce and intensive competition in the nation, international andglobal

In that context, each enterprise has new opportunities to exploit; at the sametime they have to face much risk should be prevented and limited Therefore, toadapt to business environments with high efficiency and long-term successrequiring Vietnamese enterprises in general and the pharmaceutical corporations inparticular must have a strategic thinking, which means to have a long-term vision toensure the survival and development of the enterprises

Besides, the enterprises trading in the pharmaceutical sector - a particular type

of enterprise, doing business in the health and safety of the community must meet aseries of GMP - WHO requirements (standard manufacturing medicine asrecommended by the WHO) To overcome these challenges and take advantage ofopportunities well require the enterprises in the pharmaceutical industry to choosethe right orientation, to define an appropriate and timely business strategy

Before the general reality of the pharmaceutical manufacturing enterprises inVietnam, and with the desire to offer a highly practical business strategy helping toeffectively take advantage of the opportunity to bring the pharmaceuticalmanufacturing industry of Vietnam to grow and expand to the world With the help

of the staff in Traphaco Corporation, after a process of doing the research, gatheringdocuments, studying and analyzing, the members of group 5 decided to choose and

do the research topic:

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“STRATEGIC DEVELOPMENT HERBAL MEDICINES OF TRAPHACO JOINT STOCK COMPANY 2011-2015”

1 Subject of the research:

There currently are two major kinds of medicine on the market; those are herbalmedicine and western medicine However, the proportion of people using thewestern medicine is much higher The lower proportion of herbal medicine does notmeans its treating effect is not as good as that of western medicine, but it mainlydues to the medicine using habits of the people, the orientation of the doctors topatients, (because most of doctors can enjoys the commissions from the patient'sprescription from the foreign pharmaceutical corporations) Besides, the herbalmedicines of the domestic pharmaceutical corporations are limited and lackdiversity that does not meet the requirements of the patients

According to the survey of WHO for seven groups of common westernmedicine used in Vietnam, based on the criteria of the type, the name of specificmedicine, producer and supplier showed that medical prices in Vietnam are higherfrom 5 to 40 times compared with the general prices in the world (according toonline dantri on the 26th of June 2010)

Besides, at present, the domestic medicine is only about 652/1.563 of activeingredients, and according to the World Health Organization (WHO), Vietnamesepharmaceutical industry is in development levels between 2.5 to 3 (in theclassification scale from 1 to 4), that means it only produces some of certain genericmedicines and exports some pharmaceuticals, the pharmaceutical enterprises mainlyinvest in manufacturing the common and simple pharmaceuticals only, with muchoverlapping, do not pay attention to invest in production of specialty medicines, orspecial dosages, and generally the enterprises meeting the requirements of ASEANGMP and GMP-WHO are low

With orientation to create breakthrough in technology to apply the productsfrom nature into the production creating higher value products with good effectfrom which discovers and exploits the medicinal resources to serve the protection ofpublic health The Traphaco Corporation - with 39-year experience in thepharmaceutical sector has chosen the main business direction is to trade andmanufacture the herbal medicines

Through understanding the overview of the pharmaceutical industry ofVietnam, the achievements and limitations of the pharmaceutical corporations ingeneral, and Traphaco Corporation in particular, the subject of this research is tofocus on activities as well as strategies for developing the herbal medicine atTraphaco Corporation.

2 Scope and Objectives of the Research:

This Capstone Project Report Analysis deeply the current status of TraphacoCorporation by positioning the enterprise with the theoretical model to identifyweaknesses and strengths, opportunities and challenges of the enterprise from whichhelp Traphaco Corporation not only have the strategic business plans, but also havesolutions to implement those strategies the most effectively

For this purpose, Group 5 - Class M0709 would like to focus on buildingstrategies for development of the herbal medicines in the period of 2011-2015 atTraphaco Corporation

Through the matrix model of SWOT, our group confirms that the strategy of

SO (the combination of strengths and opportunities) is the optimal strategy for theproduction of herbal medicines at Traphaco Corporation What is the objective ofthe strategy? What is the content of the strategy? What solutions are placed for theprocess of building the strategy? Will these issues be addressed in this CapstoneProject Report?

of the herbal medicines in the period of 2011-2015 at Traphaco Corporation

General principle for making any decision, or in other words, to make aconclusion on any issue, we must be based on actual surveyed results combinedwith the academic theories

This Capstone Project Report mainly uses method of collecting secondary dataincluding:

- Internal data of Traphaco Corporation;

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- Sources from books, internet;

- Using some references, documents specialized in domestic and foreignStrategic Management

In addition, our group also uses the method of statistical sample, survey, andanalyzing the questionnaires

4 Structure:

Beside the introduction and the conclusion, the Capstone Project Reportincludes 3 main chapters:

Chapter I: General theory of business strategy

Chapter II: The current business situation of Traphaco herbal medicine

Chapter III: Strategy for the development of herbal medicine at Traphaco for

the period of 2011-2015

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CHAPTER I : GENERAL THEORY OF BUSINESS STRATEGY

1.1 The concept and the role of the business strategy to the enterprises:

1.1.1 Some concepts of business strategy:

The term of "strategy" comes from the military field In military, the strategy isknown as: the art to coordinate the military, political, spiritual, economic forcesmobilized to win the enemies, and the basic argument is one can crush itsopponents, even a bigger and more powerful one, if one can lead the game and putthe opponents on the favorable battle-field for deploying the capabilities(advantages) Today, the businessmen consider the market as the battlefield, so theterm of "strategy" has been used so much in business

Although the term of business strategy has appeared for a long time, there has

no really an accurate and complete concept According Michael E Porter professor

of Harvard University: "Business strategy is the art to create the competitiveadvantages" Thus, business strategy is one of the means to compete among theenterprises, it is a measure for the enterprises to achieve business goals by creatingand building the competitive advantages meaning to create or build up the strengths,opportunities, risks and challenges then find out appropriate solutions to win inthe business (Source: Curriculum of Strategic Management, MBA, GriggsUniversity)

But according to the consulting staff of Boston Consulting Group (BCG): "thebusiness strategy is the allocation of available resources for the purpose of changingthe balance of available resources of the enterprise, and gain the competitiveadvantage", that means the enterprises from analyzing their resources, and theirdepartments to allocate the resources the best from which give out the goals, andmeasures to achieve goals with the highest efficiency creating the competitiveadvantage (Source: Curriculum of Strategic Management, MBA, GriggsUniversity)

In the definition of Mintzberg's 5 Ps generalizing the aspects of StrategicManagement as follows:

+ Plan: series of the consistently planed actions

+ Pattern: Consistency of behavior over the time, it may be planned or not

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+ Position: Match between the organization and its environment.

+ Perspective: the ways to be aware of the world deeply

+ Ploy: specific way to assess the opponents

Quinn introduced the concept: "strategy is a pattern or a plan integrating themajor objectives, policies and sequence of actions into a closely cohesive group".(Source: Quinn J B (1980)

Thus, the strategy is aimed at outlining the future image of the enterprise, and toachieve that firmly, the enterprises need to have the appropriate decisions and theconsistent actions to achieve fixed goals In other words, the business strategy is anart to coordinate activities and control them to achieve long-term goals of theCompany

1.1.2 Kinds of strategy

Classify the strategy according to the level of strategy

There are three levels of strategy in the business those are: the strategy orgeneral strategy; corporate strategy and competitive strategy

Figure 1.1

- Sort by strategic-level strategy:

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+ Corporate strategies (general strategy) level strategy towards corporateobjectives and overall scope of the organization The objective of this strategy isthat the targets that the company wants to achieve a quick overview of the entirearea where the company operates

+ Competitive strategy: regarding how to successfully compete in specificmarkets

+ Functional strategy (or operational strategies) is strategies to help thecompetitive strategies and implement the company offers an effective way toremember the components in terms of resources, processes, the people and the skillsneeded

So, though there are many definitions and classifications of strategies, ingeneral all of them are in 4 main categories: plans, models, position andperspective To say in other way, the strategy is:

- Where the enterprise tries to achieve in long-term (the orientation)

- What are the markets in which the enterprise has to compete and theoperations the enterprise carries out in those markets (market, scale)

- How the enterprise operates better than the competitors in those markets(advantages)?

- What are the resources (skills, properties, finance, relationships, technology,facilities) the enterprise needed to compete effectively (resources)?

- Which of the external environment factors affect the competitiveness of theenterprise (environment)?

- Which value and expectations the bosses in and out of the enterprise need(investors)?

1.1.3 The role of business strategy.

Business strategy identified means that the enterprise has to locate itself in theindustry map by answering the questions:

Where is

the enterprises

?

Through this, the enterprise can find its strengths and promote them to createthe advantages and also find the weaknesses to reduce and overcome By locating

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where the enterprises currently, planning the business strategy will tell us where theenterprise wants to get to and how will the enterprise get there The businessstrategy offers goals and orientations for the enterprise to operate effectively

Strategy is the factor which helps to develop the enterprise Thus, it will bebetter if we start a strategy with the offering of the future perspective on the basic ofcorrect assess of the internal, identifying advantages and potentials to locate theenterprise correctly and how to achieve the goals with a carefully planned strategy.With the features of business strategy reflected in the process, business strategyalways has the spirit of offensive and winning in the market and usually planned inlong term of 3, 5, 10 years or more, the decision to choose a suitable model willmark the changes from the starting steps to success

1.1.4 The models of business strategies:

1.1.4.1 Linear strategy model:

Linear strategy model focuses on the planning activity This model is calledlinear because it consists of the scheduled, oriented operations which follow logicalorder in the planning process

Linear model is less used since the strategic factors become increasinglycomplex, not only because these factors relate to many different managementaspects but also because of the changes of technology, economy, and informationvariables

1.1.4.2 Adaptation strategy model

Adaptation strategy model is defined as focusing on the ability to combineopportunities and threats of the business environment with the enterprise's resourcesand ability of the enterprise to exploit those opportunities

Adaptation strategy is base on suppositions The relation between the enterpriseand the enterprise is closer and stronger than in the linear model Adaptationstrategy model is used more popularly than linear model

1.1.4.3 Interpretive strategy model.

Interpretive strategy model is mainly based on factors of social relations.According to this view, the social relationships consider the business as acombination of commitment of individuals to cooperate with the spirit of

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Functions, missions and strategic goals of the enterprise (1)

Analysis of the business environment (O, T) (2)

Analysis of the internal

environment(S, W) (3)

Select the strategy (4)

Strategy of the whole enterprise level (5)

Strategy of business and functional departments

Deploy the strategies (6)

Chec

k an

d as ses

s t

he res ult

s ( 7)

A notable difference between interpretive model and adaptation model is theapproach of each in complexity The adaptation strategy tries to solve the complexproblem in the aspect of structure; most notable are the conflicts and changes ofdemand for the enterprise's products The interpretive strategy emphasizes thecomplex problem in the aspect of attitude and awareness of relating parties to theenterprise

1.2 The process of planning the overall business strategy

Business strategy is planned base of the vision of the enterprise, and orientingfor all of the enterprise's operations and thus is long-term strategic It consists

Figure 1.2: The process of planning

1.2.1 Strategic planning (choosing missions and major targets of the enterprise)

The enterprise's missions and major targets offer a context to build the strategy.The missions describe the reason to exist of the organization and points out what itwill do The major targets identify what the enterprise hopes to offer in medium andlong term The process of planning business strategy above can be summarizing inthis figure:

STRATEGIC CHOICE

STRATEGIC

N

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Figure 1.3: The process of planning business strategy 1.2.1.1 Vision:

Vision is a message embodying the corporate core value Represents what is important to the company, and the contribution in terms of business and life, the corporate business principle, corporate position in the world and commitments

which the company will comply

1.2.1.2 Mission:

Mission is a message specifying the Mission as an encouraging target It describes necessity of the survival improvements for the corporate, creating the corporate future confidence and orienting to make the impossibility become

possibility

1.2.1.3 Business goals:

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The identification of goals was developed from the mission of the enterprise,but is set up separately and in more detail Goals are identified in medium-term,long-term or short-term

Usual long-term goals are: profitability, productivity, competitive position,employee development, technique leading or social responsibility, etc

Short-term goals (within 1 year) often are separate and specifically limited ontime Requirements of short-term goals are detailed, measurable, available, and,most basically, aiming towards long-term goals

1.2.2Analysis and evaluation

1.2.2.1 External environment:

The goal of analyzing the external environment is

to realize the opportunities and challenges from theexternal environment to the enterprise The three types

of external environment linked together are: environment, national environment and industryenvironment in which the enterprise is operating The enterprise identifies the opportunities andchallenges through the analysis of data about changes in the environments wherethe enterprise is operating or intending to enter Opportunities are marketdevelopment potential, market space, close to material resource, cheap and qualifiedhuman resource, etc Challenges are narrowed market, fierce competition, policychanges, political instability in major markets or the new technology developmentmaking the enterprise's facilities and production line become out-of-date

micro-1.2.2.2 Analysis of the enterprise's internal environment:

The goal of analyzing the internal environment is to find the strengths andweaknesses of the enterprise

The analysis of internal environment is for identifying the basic of competitiveadvantage and explains why in an industry there are some corporations whichoperate better than the others Competitive advantage is the result of one of thesefactors: the superiority in effectiveness, quality, improvement and customersatisfaction To achieve the superiority the enterprise has to develop the abilities to

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create the favorable differences Abilities to create the differences are the result ofresources and capacity of the Corporation

The four blocks create competitive advantage are: Effectiveness, quality,improvement and customer satisfaction

Figure 1.4: Four blocks create competitive advantage

Abilities to create the difference of an organization are formed from itsresources and capacity Resources consist of: financial properties, material,personnel, technology and organizational structure The analysis of the enterprise'sinternal environment and the strengths and weaknesses helps the enterprise toidentify the basic capacity to promote and the limits to overcome So the enterprisecan built the suitable strategies to its capacity, to develop its strengths and overcomeits weaknesses, exploit the different ability

General summary: The results of the analysis of internal and external

environment of the enterprise are the results which study and evaluate the businessenvironment on a whole They include the geographical (or political, economical,social, environmental, cultural) business environment, trend of the industry (ortechnology, science, supply source), the situation of the market (demand,consumption, trend forecasting), the situation of the competition (major opponents,potential opponents, advantages and disadvantages, current position and thepursuing strategy)

satisfaction

Competitive advantagelow cost different

Superior improvementSuperior quality

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Figure 1.5: Results of the analysis of internal and external environment.

1.2.3 Choosing the business strategy:

The enterprise's strategy is to orient the development and to build thecompetitive advantage base on the studies and evaluations done above Theenterprise can choose one of M.Porter's three groups of strategies:

- Cost leading (lowest cost)

- Centralization ( Focus in a specific market sector or in a specific group ofproducts)

- DistinguishingThe choice of strategy can be done through one of the following methods axis isthe relative market share

1.2.3.1 - BCG method:

The criteria to evaluate an enterprise's attractiveness are the relative marketshare and the market's ability to grow Each operation will be located base on thesecriteria This matrix has two axes: the column is the market's ability to grow and thehorizontal axis is the relative market share

Seller's negotiation ability competitionCurrent Customer's negotiation ability

Threat of alternative product

Threat from potential opponents

society Global

Demography

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Figure 1.6: BCG matrix

Base on the BCG figure with each position we have the following strategies:

Group 1: The enterprise in this group has the leading advantage of market

share and has high growing ability so that it has opportunity to grow well and hasstable high profitability

Group 2: The enterprise has potential and good competitive ability The

solution for the enterprise is to regularly strengthen the investment efforts tomaintain the leading position

Group 3: The enterprise has slow grown speed but still has the advantage of

market share The solution is to avoid investing too much and to predict when toretreat

Group 4: The enterprise has no advantage in market share and grows speed.

The solution is to quickly retreat by avoiding using resources or resell to the otherenterprises

BCG's approaching has many advantages so that it's used popularly

1.2.3.2 - SWOT analysis method:

The basic aim of SWOT analysis is to identify the strategies it orients, bringingrelevance or proportionality between the enterprise's resources and capabilities withthe demand of the environment in which the enterprise is

Relative market share

High Average Low

Group 2

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Opportunities(O)

Threats (T)

Strengths(S) Combination

(S/O)

Combination(S/T)

Weaknesses(W)

Combination(W/O)

Combination(W/T)

Figure 1.7: SWOT Matrix

The strategy combining S/O is the result of the combination between the mainstrengths and the opportunities The important thing is that the enterprise has to useits strengths to exploit the opportunities

The strategy combining ST is the result of the combination between the mainstrengths and the threats In this strategy the enterprise uses its strengths toovercome the threats

The strategy combining OW is the result when the enterprise uses theopportunities to improve its weaknesses

The strategy combining WT is the result when the enterprise tries to improveweaknesses to avoid threats

Moreover, we can combine using this method with scoring to assess strengths,weaknesses, opportunities and threats of the enterprise correctly

1.2.3.3 – SPACE matrix method

Figure 1.8: Space matrix

1 3 The stage of checking the strategy

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Checking the strategy is the last stage of the strategy management process.Strategy management is the process in which the managers supervise the operation

of the organization as well as its staff to assess the operations that whether they arecarried out continuously and effectively or not, from which the enterprise will haveadjustment decisions to improve for better efficiency The management contentsinclude: Effectiveness management, quality management, improvementmanagement, and customer satisfaction management

1.4 Using the strategy analysis techniques to Analysis the current situation

of the enterprise

Because time is limited so that in the analysis of the enterprise's currentsituation group 5 - M0709 will use some of the models and methods mentionedabove in the process of analyzing the situation, locating the enterprise and planningmanagement strategy for Traphaco Corporation, specifically are:

- PESTLE model in analyzing the macro environment

- Michael Porter's five competitive factors in analyzing the business industryenvironment

- SWOT matrix in summary analysis of internal environment ( strengths andweaknesses) and external environment (opportunities and threats) of the enterprise(using score)

- Analysis the basic value chain so that the enterprise can locate its position andidentify the means usable to deploy the business strategy

- BCG matrix to assess the enterprise attractiveness (relative market share andthe grow capacity)

-SPACE matrix method

In short, the process of strategic management consists of the basic stages like in the following figure:

goals

Deploy and administrate the chosen strategies

Assess, supervise, improve15

Figure 1.9: Basic stages of strategic administration

Conclusion: A good strategy is a strategy which has high feasible Each

enterprise with different organizational structure has the different strategy

deployment, but the importance is that whether the enterprise can administrate well

the chosen strategy and deploy effectively the strategy and bring high values

- Base of the function and mission as well as the analysis of the factors of the

internal and external environment, the enterprise can choose the suitable strategy to

itself The analysis process use various analyzing models, tools and predictions will

help the enterprise to realize the strengths, opportunities, weaknesses, threats, and

then have the right strategic solutions

-In the process of deploying strategy, the theoretical basic of strategy will be

applied in reality, but because of the usual change of the environment and other

hidden factors which cannot be predicted, assessed and Analysis So, mistakes will

occur in the process of planning strategy Then, we have to change and improve to

suit the real situation

Change/

improve if necessary

Change if necessary

Redo 1,2,3,4 if necessary

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2.1.1 General introduction about the company

􀂾 Name: Traphaco Company

􀂾 English name: Traphaco Joint Stock Company

Board of directors and executive directors

Members of board of directors:

1- Ms Vu Thi Thuan: Chairman of the board

2- Ms Nguyen Thi Mui: Deputy of chairman

3- Mr Nguyen Huy Van: Committee member

4- Mr Tran Tuc Ma: Committee member

5- Mr Hoang Thi Ruoc: Committee member

6- Mr Nong Huu Duc: Committee member

Member of executive directors:

1- Ms Vu Thi Thuan: General Director (awarded KOVALEVSKAIA)2- Ms Nguyen Thi Mui: Deputy of general director

3- Mr Nguyen Huy Van: Deputy of general director

4- Mr Tran Tuc Ma: Deputy of general director

5- Ms Hoang Thi Ruoc: Deputy of general director

6- Ms Pham Thi Phuong: Deputy of general director

Members of supervisors:

1- Mr Nguyen Tat Van: Head of supervisor

2- Ms Nguyen Thi Hau: Committee member

3- Ms Nguyen Thi Kim Hoa: Committee member

Traphaco Company formerly was medicine producing department belonging tothe Railway Medical Company founded in 1972 with the capital of 278 million

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dong only, after more than 39 years of operation, TRAPHACO has continuouslygrown and became one of the top 10 pharmaceutical companies in Vietnam,offering jobs for 1,000 workers The company is traded on the HOSE with thecharter capital of 102,000,500,000Vnd.

The company has three strategic shareholders those are State CapitalInvestment Corporation, Vietnam Azalea Fund and Bao Viet Fund of Securitieswith the percentage of ownership in turn is 36,67%, 5% and 6,16%

Ownership structure of the company includes 36.67% of state ownership,12.85% of foreign ownership and 50.48% of the other ownership

2.1.2 Development process

2.1.2.1 Major lines of business:

- Producing and trading in medicine, food, cosmetics, chemicals and medicalequipments;

- Consulting and producing the scientific and technical services, technologytransfer in the medical, pharmaceutical, cosmetics;

- Researching, collecting, growing and processing medicinal herbs

- Trading in, importing and exporting the medicines, the products of medicine;

- The other lines of business as registries

2.1.2.2 Operational status:

TRAPHACO formerly Medicines production Group belonging to theRailway Health Service was established on 28.11.1972, with the task of producingplasma, fluids, distilled water for Railway Hospital in the period of resistanceagainst American

- 01/06/1993, Pharmaceutical Factory Railway (trading as Raphaco) wasborn, has legal status, own seal, its own account, and operates independently underthe Government's Decree 388 Number of initial capital is 278 million VNĐ and ateam of over 100 employees Enterprises began to invest and implement policies toattract human resources with high quality; labor recruitment is pharmacistUniversity graduate with good, well at the Hanoi University of Pharmacy, alongwith the signing of many contract technical staff, collaboration in scientificresearch, exploration of market research and business organizational structure

In 1994, the organizational structure of medical Railways Department was

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converted into the Health Department of Transport, Rail pharmaceutical factory wasrenamed pharmaceutical company and medical equipment, supplies and TransportMinistry (name transaction is TRAPHACO) The company added functionality,increasing the sales counter in the center of Hanoi and began building a distributionsystem in the Northern provinces

After years of preparation workshops as well as personnel training, in 1998,the Company completed pharmaceutical factory in Phu Thuong, Tay Ho, Hanoi andDrug Administration recognized ASEAN GMP (Good Manufacturing PracticeASEAN) - the first line in the north GMP ASEAN

- 27/09/1999, the Company received Decision 2566/1999/QD - BGTVT ofthe Minister of Transport transfer State-owned enterprises - Pharmaceuticalcompanies and medical supplies and equipment into TRAPHACO-stock companies.After 3 months of preparation, on 01/01/2000, Pharmaceutical Corporation andEquipment Medical Equipment TRAPHACO officially began operations in theform of joint-stock company with 45% state

-05/07/2001, Pharmaceutical Corporation and Medical Equipment supplies.TRAPHACO renamed TRAPHACO Joint stock company( TRAPHACO)

-01/2004, TRAPHACO completed construction of pharmaceuticalmanufacturing plant in Hoang Liet , Hoang Mai, Hanoi and Drug Administration isrecognized as the standard system of GMP / GSP / GLP -ASEAN

-01/2007, Hoang Liet plant was officially recognized GMP-WHO standards 27/11/2007, TRAPHACO was the 35th anniversary of establishment of thecompany and proud to receive second-class Labor Medal by the President ofSocialist Republic of Vietnam awarded

26/11/2008, TRAPHACO shares were officially listed and traded on theHCM City Stock Exchange, marking a turning point in the development of theCompany

For over 39 years of construction and development, TRAPHACO has reallygrown and has made many contributions to the protection of human health and thedevelopment of the pharmaceutical industry of Vietnam

Table 2.1: Remarkable Achievements:

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Year Achievement By

2009

The most famousbrand name in thepharmaceutical industry

Young Entrepreneur Association

of Vietnam

2007

Top 100 leadingbrand names of high-quality products ofVietnam

Consumers vote

Economic Block

+ JSC tech TRAPHACO (TRAPHACO CNC)

+ Company Limited Traphaco Sapa in Lao Cai

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- Branches:

- Ho Chi Minh City Branch: 3 / 2 Street, District 10 - Dist Ho Chi Minh

- Da Nang Branch: No 255 Ton Duc Thang - Lien Chieu - Da Nang Branch - Nam Dinh Truong Han Sieu Street, urban Hoa Vuong Str Nam Dinh,Nam Dinh province

- Thanh Hoa Branch: Lot K1 + K2, Zone 4, New Town North Avenue Le Loi, DongHuong, Thanh Hoa

- Nghe An Branch: Urban Tan Vinh, Ward Tan Vinh, Nghe An City

2.1.3 Summary results of operations TRAPHACO

Traphaco is the pharmaceutical business with many years of experience inthe industry and is one of the leading companies in the popularization anddevelopment of medicine in Vietnam Traphaco be circulated more than 230licensed products, distributed in various groups such as the nervous system, liverand gastrointestinal, cardiovascular, analgesic - antipyretic, ear, nose and throat,eyes The products are distributed Traphaco wide distribution throughout thecountry

Traphaco are factory management drug GMP in Hanoi and is a shareholder

of a factory manufacturing GMP other drugs in Hung Yen Traphaco factories built

by modern design, with systems installed in most advanced equipment importedfrom Germany and South Korea, Italy and China

2.1.3.1 Business situation

The period of 2006-2010, Traphaco had an impressive growth in revenue, with

an average of 24% per year, relatively high compared to the average in the industrythat is 16% per year In 2009, although the revenue reduced lightly 4.25%, theprofits from business operations achieved 25.4% of growth, mainly because thecompany increased prices of products average to 30% compared to the year of

2008 In 2010, the company has completed the revenue plan of 900 billion dongincreasing 16.4% and the post-tax profit up to 39.1% compared to that in the year of2009

Table 2.2: Growth speed 2006-2010

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Indicator 2006 2007 2008 2009 2010FNet revenue 48.02% 46.32% -4.25% 13.97% 16.4%Post-tax profit 139.57% 20.37% 10.88% 25.02% 39.1%

(Source: Traphaco Company)

Have carried out the procedures for land allocation and implementation ofcompensation and leveling of land 4.6 ha in Tan Quang, Van Lam, Hung Yen to beinvested to expand production scale

Company has deployed applications internal network system Initially usedfor management and exchange of documents within companies Ongoing updates tostandardized data sharing in production systems

Investment in infrastructure and technical facilities for the distributionsystem and the Vietnam Drug Administration certification practice good medicinedistribution (GDP)

- Outside the enterprise

EPS and Growth of revenue at Traphaco

Revenu

e

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Performed transfer of SAPA TRAPHACO Co Ltd a member of SAPA onTRAPHACO July of 2009, charter capital is 3.35 billion VNĐ

2.1.3.3 Work Management

In 2009, the Board has made the administration as closely supervise theactivities of the General Manager in the implementation of the resolutions of theboard of directors, supervisory work directing and managing activities estatebusiness, to ensure they reach planned targets in 2009

Also, the Board and Board of Directors also have research and application ofmore advanced management methods in the operations of the Company

2.1.3.4 The listing and share issuance

In 2009, the Board has conducted the company consulted the GeneralCouncil on plans for shareholders to issue shares to increase charter capital-fundedfrom retained earnings The plan was adopted by the shareholders through bonusshares at a rate of 25% Under the authorization of the Shareholders, the CompanyBoard has completed the procedures for issuing shares, and additional listing andregistration of additional securities to the number of shares issued Implementation of treasury stock bonuses to workers and excellent staff in 2008,namely: completed 32,480 bonus shares distributed to officials and employees from25/09/2009 until 02/10/2009

The company has a chartered capital102.000.000.000 VND on 31/12/2009

2.1.3.5 Other work

Successfully organized the 10th anniversary ceremony of equalization is amilestone model evaluation activity of the company after 10 years of equalization,the opportunity for members to understand the TRAPHACO herbal companies

2.2 Status of active pharmaceutical product development east of the Corporation Traphaco

2.2.1 Current situation of Marketing:

- Product Policy: High quality, differences

- Pricing policy: prices high

- Policy distribution: Distribution by the width and depth in the provinces with highincome

* Promotion Policy:

+ Join-sponsored conferences, construction facilities for hospital

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+ Participate in ad, introducing products, the company specialized magazines,television and fairs

+ Apply the discount policy stability and reasonable for intermediate distribution + Apply policies for Hospital - Medical Center

+ Looking to expand markets to countries in the region and the world

Herbal medicine plays an important role in the business strategy of Traphaco.The company is currently focusing the main resources to develop this product line,take advantage of Vietnam is available divertive species of herb

2.2.2.1.Phamaceutical products portfolio:

Table 2.3: Products portfolio:

(including VAT)

1 Ampelop, blister of

10 soft gels Box 9 blisters* package of 48 boxesblister of 10 soft gels *box of 72.000

8 Boganic, box of 5

blisters

Box blister of 20 soft gels *box of

5 blisters* package of 60 boxes

45.000

9 Boganic, box of 5

film coated tablet Box 5 blisters* package of 60 boxesblister of 20 soft gels *box of 45,000

10 Boganic Box blister of 10 soft gels *box of

5 blisters* package of 60 boxes 67,500

11 Carmanus Box blister of 5 soft gels *box of

12 blisters

126,000

12 Celgar 420mg Box blister of 10 soft gels *box of

10 blisters* package of 27 boxes 145,000

16 Duong cot hoan Box box of 20 sachets*package of

42 boxes

45,000

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21 Hoat huyet DN,

5 blisters Box 5 blisters* package of 60 boxesblister of 20 soft gels *box of 55,000

24 Hoat huyet, film

without sugar Bottle 48 bottlesBottle of 100ml * package of 23,500

27 Ich mau Box blister of 10 soft gels *box of

2 blisters* package of 132 boxes 12,000

29 Livbilnic, box of

2 blisters

Box blister of 20 soft gels *box of

2 blisters* package of 132 boxes

36,000

30 Ginseng and

false ginseng, 10

blisters

Box blister of 15 soft gels *box of

10 blisters* package of 46 boxes 60,000

32 Slaska 100ml Bott

le 48 bottlesBottle of 100 ml * package of 17,000

34 Vien sang mat Box blister of 10 soft gels *box of

10 blisters

45,000

42 Bat Vi Que Phu Box Blister of 10 tablet*box of 5

blisters *package of 48 boxes 107,500

48 CEBRATON Box Box of 2 blisters of 10 tablets 63,000

49 CEBRATON Box Box of 5 blisters of 10 tablets 157,500

2.2.2.2 Product category

Strategy of expanding the category: This strategy is applied by TRAPHACOregularly with the reputed brands and high profit Application of categoryexpanding strategy is used to diversify kinds of chemist from the initial products ofthose brands, as the result in the table below.

Table2.4: Brands of expanded category

1. Hoat huyet duong

nao

sugar - coated tablet, film-coatedtablet, fluid

2 Boganic sugar - coated tablet, film-coated

tablet, Soft capsule

3 Ha thu o Granulated medicine, Chewing tablet,

Film coated tablet

4 Song mot Film coated tablet, Soft capsule

2.2.2.3 Quality and Indications of the product:

Quality and indication of the products are good and supervised strictlyaccording to the following system of quality management

Table2.5: System of quality standard applied at TRAPHACO

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1. GMP ASEAN Hoang Liet Herbal medicine Factory

2 GLP ASEAN Department of controlling the quality

3 GSP ASEAN System of warehouse of complete

products, materials and ancillary materials

2007) Van Lam Herbal medicine Factory

TRAPHACO is currently applying the standard of GMP ASEAN for thefactories manufacturing tablet, capsule, powder, atopic, liquid, for the kinds ofproducts do not belong to the group of beta lactam GMP ASEAN has been applied

by TRAPHACO since 1997 (as the first enterprise in the North)

The company is planning and applying the ISO 9001:2000 for the system ofquality management

2.2.2.4 Packaging, labels

The design and management packages are always focused and companieswilling to invest, especially the packaging, though high cost but good quality andnice design

Use of trade names (also known as names of specific drugs) is applied to theproducts that companies want to develop the brand within a brand Traphaco Trademark protection is used to shape the overall protection of designs, styles,colors and forms of packaging with the product name Trademark protection tocombat the counterfeit design forms causes confusion to consumers Traphaco used to expand the brand to a group of products with the same groupaction

Using brand new application for new drug effects new headings

Table 2.6: The product groups brand extension

1 Amorvita

Amorvita soft: Tonic contains Vitamin more

Amorvita ginseng: Tonic contains Vitamin andGinseng

Amorvita Hải sâm: containing acid amin, vitamin

2 Cagu CaguCagu plus

3 Tranausea Tranausea

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Tranausea plus

2.2.3 The advantages and difficulties in product development activities of large pharmaceutical companies shares Traphaco:

2.2.3.1 Advantages:

- The company achieved growth at a high level is sustained for many years

- Brand and product business reputation and consumer confidence

- The company is financially sound, low-interest loans to

- Production capacity of the enterprise together with a good quality managementsystem and system manufacturing practices of the business is completed over theyears to apply continuous improvement

- The company has high credibility with its partners

With the strength of the medicine known brand, production capacity,research and development, independent source of herbs, extensive distributionsystems to customers and especially the continuous trend of using medicine use,Traphaco will have the opportunity to strong revenue growth in the coming yearsand become a pioneer in the medicine market in Vietnam

2.2.3.2 Difficulties:

- Be the joint impact of the economy and markets pharmaceutical products inVietnam, making goals, strategies, planning requires coordination with the overallsituation and the enterprise itself

- As the leading enterprises of Vietnam's pharmaceutical industry, especially anEastern brand of medicine, TRAPHACO always chasing the target of acts of unfaircompetition such as counterfeit goods, which appeared under the tail edge productscompetition with new products, the effectiveness of TRAPHACO

- The South is a potential market but is not interested TRAPHACO trade promotion

- Distribution system depends on the distribution intermediary should recover debts

2.3 Facility development strategy of herbal medicines Corporation Traphaco: 2.3.1 Analysis of external environmental factors:

2.3.1.1 Macro environmental analysis PESTLE model

a/ Law

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Pharmaceutical industry is one of the sectors affected the strongest by themanagement of the state The government has promulgated many legal documents

to manage the pharmaceutical industry including documents relating to the issuessuch as: state policy in the field of pharmacy, state management of drug prices,conditions drug business, medicine management under the specially controlled list,quality standards of drugs, drug-testing facility

On 19/04/2007, Ministry of Health issued Decision No 27/2007/QD- MOH onthe schedule on the principle of "Good Manufacturing Practice (GMP) and" GoodStorage Practice"( GSP) carried out According to this decision, since 01/07/2008,the manufacturing enterprises do not meet the GMP as recommended by the WorldHealth Organization (GMP WHO), and the import-export enterprises andpharmaceutical trading enterprises do not have the storage as the standard of GSPwill have to stop producing, importing and exporting directly Besides, there arealso regulations such as GLP: "Good Laboratory Practice” of vaccines andbiological," GDP: "Good Distribution Practice" of medicine, GPP "Good PharmacyPractice” of medicine management Those enterprises that meet the standards canexist and develop These regulations will make increasing trend of purchasing andmerging the small pharmaceutical companies into larger companies from whichenhance the competitiveness of the pharmaceutical companies in Vietnam throughfocusing on developing under deep way to compete with the multinationalcompanies

The international commitments when integrating into WTO also affect thepharmaceutical industry of Vietnam such as: the tax will reduce from 0 to 0.5%compared with the tax rate from 0 to 10% as before After 5 years, when Vietnambecame an official member of WTO, the tax rate will drop to 2.5%;

b/ Economy

Vietnam is one of the countries with high GDP growth rate in the world (GDPgrowth rate average period from 1990 to 2010 reached 7.38%) and per capitaincome increased more than 6 % per year from 1991 to level 123USD/person 1200USD per person in 2010 put Vietnam ranks of middle income countries.Additionally, Vietnam's population of over 86 million people, the average growthrate is quite high, 1.25% per year in health spending per capita is lower

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18.5USD/person/year again, rising an average 7.4 % years (average expenditure ofdeveloping countries to pharmaceutical and medical 40USD/person each year) andhealth care needs of the people of Vietnam have been increasingly interested inforecasting the pharmaceutical industry so much potential ability to grow Foreign pharmaceutical firms to manipulate the domestic pharmaceutical market,drug prices, especially the kind of brand-name drugs can not be produceddomestically are pushing prices up and make difficult to control the lives of thepatients even more difficult more difficult

On the other hand, despite the global financial crisis and high inflation rate inVietnam recently has strongly influenced the economy of Vietnam, especially theprocessing industry import and export, financial banking, real estate investors makepeople more cautious and in investment and consumption However, thepharmaceutical industry is one of the less affected by the crisis than most otherindustries, because drugs are considered one of the essential commodities to thepeople

is a good opportunity for the development of pharmaceutical industry not only inVietnam, but also reaching out to the world

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of pharmaceutical companies are developing R & D department and have anappropriate investment Moreover, due to the strict requirements on the storing andmanufacturing medicine as required by WHO, so to ensure the managementregulations on pharmaceuticals, the Vietnamese pharmaceutical companies haveinvested in advanced technology to ensure the best quality of the medicines tocompete with foreign medicines.

2.3.1.2 Environmental sector analysis

Scale pharmaceutical Vietnam today are small, industry growth rate is always high

In the period 2000-2009, industry average growth rate of 16% and is forecast tocontinue growing revenue strongly Growth speed of the pharmaceutical industry isestimated to grow 17% per annum during from 2010 to 2015 In 2008, sales ofpharmaceuticals at 1:36 billion, accounting for 1.78% of GDP, up 22% compared to

2007 In particular, domestic production value reached 749 million, up 33.8%compared with 2007, 50.3% meet national needs Estimates for 2009, sales ofpharmaceutical products can reach over 1.6 billion dollars, up 17.6% over 2008.Drug expenditure per capita increased from 3.16 dollars to 18.05 dollars

Source: Vietnam Pharmaceutical Association

As assessed by the World Health organization (WHO), Vietnam'spharmaceutical industry in the developing world Vietnam has a domesticpharmaceutical industry, but most have to import raw materials Like neighboringcountries, the pharmaceutical industry of Vietnam is subject to poverty Healthinsurance is not enough and people should not have patients pay more for the drugs

Revenue of consuming the pharmaceuticals and average drug money per person

they need So until 2009, health spending in Vietnam is only 1.6% of GDP Under WTO commitments, the end of 2010 Vietnam's pharmaceutical enterprisesare required to meet WTO standards on product quality (GMP-WHO), after thatperiod the enterprise does not meet standards will be forced to stop production As

at the end of 2008, there were 52% of pharmaceutical companies (including newand medicine) to achieve GMP-WHO standards, in which some enterprises achieveGLP and GSP standards, respectively, 51% and 63%

In recent years, the number of domestic pharmaceutical production isincreasing, demonstrating growing industry has invested heavily Mostpharmaceutical companies have accumulated large funds from the rise inconsumption and partly from the issuance of shares to raise capital, so that domesticenterprises can afford to continue the private production capacity Country currently has about 180 pharmaceutical manufacturing companies, 84pharmaceutical manufacturing companies, 89 drug export business, 900 bases ofdrug distribution and retail stalls 57.000 Vietnam's pharmaceutical businessesoperations and production in three major segments: production of pharmaceuticals,medicine, import and export

Medicines are including generic and brand-name drugs Generic drugs are interms of value for 11% of Vietnam's pharmaceutical market and the output of 35%.What about brand of drugs is, Vietnam is hardly produced because of lack ofcapital, technology and prestige Vietnam's pharmaceutical market tones dividedinto 15 main groups In particular, five major groups are accounting for nearly70%, including nutrient metabolism, antibiotics, cardiovascular, nervous andrespiratory Most domestically produced drugs are antibiotics, vitamins and othersupplements Vietnam market drugs only accounted for 50% of total drugconsumption, while the pharmaceutical industry in Vietnam is about 90% of the rawmaterials used in production Improving manufacturing, compliance withinternational quality standards and partnerships with multinational companies isessential for companies to ensure that Vietnam plans to offer 60% demand in thedomestic market in 2010

Array herbal medicine: is only 0.5% - 1.5% of total output There are about30% of the patients were examined and treated by herbal medicine Forecast

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medicine market segments will grow in the future partly because of the habit ofusing the medicine of Vietnam, partly because the trend back to productsoriginating in the natural world Medicine is one of the strengths of Vietnambecause the country's National Medicine has a long history of development, peoplestill preferred herbal medicinal products derived pharmaceuticals Department ofHealth has granted a registration number for the 2000 preparations in herbalmedicine production and circulation in the market

Import and Export: Market share of the imported drugs account for 60% of totalindustry revenue In that group of drugs, nutrition metabolism, cardiovascular,gastrointestinal, anti-inflammatory - analgesic - antipyretic are groups largeproportion of imported and mainly imported from France (the proportion of 19%),Korea ( ratio of 12%), India (11% weight) But drug export market of Vietnam isvery small, mainly to Russia and Eastern Europe Currently the domesticpharmaceuticals account for only 40% of total sales Objectives to 2010, drugproduction in the country will meet the 60% of the people and demand to 2015 is70%

2.3.1.3 Competitive Analysis of internal branches in the model of Michael Porter

Pharmaceutical industry is one of the branches in the internal environment ofhigh competition When Vietnam joined the WTO, all items are subject to fiercecompetition Pharmaceutical product is special, so competition in thepharmaceutical market is fierce and the attention of the entire society Previously,domestic pharmaceutical enterprises can only manufacture drugs usually competetogether in a small market, now the WTO, foreign enterprises to participate inVietnam's pharmaceutical market more and more Nowadays, foreignpharmaceutical companies can not produce and distribute them in the domesticmarket, but when the time protected the pharmaceutical industry will have acompetitive environment At that time, domestic pharmaceutical companies facedwith multi-national corporations have modern technology, high productivity

Client:

Pharmaceuticals is one of the essential commodities to serve the community'shealth, there is no bargaining power should cost customers is essential in this

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Demand for pharmaceutical products is an essential need therefore unlikely to havealternative products for this item

TRAPHACO POSITION IN VIETNAMESE PHARMACEUTICAL INDUSTRY

a/ Position - market share and competitors:

Traphaco Corporation was assessed as 1 of the 10 leading pharmaceuticalcompanies and has the fifth revenue in medicine manufacturers The companycurrently accounts for 2% pharmacy market and 4.5% domestic medicinemanufacturers

TRANH

Source: Vietnam Pharmaceutical Association

33

Source: Vietnam Pharmaceutical Association

Source: Traphaco Company

The competitors of Traphaco are all the companies operating in pharmacyindustry, both western medicine and herbal medicine In western medicine aspectthere are: Hau Giang Pharmacy, Domesco, Imexpharm In herbal medicine aspectthere are OPC, Mekophar, Bao Long Pharmacy…

Besides, the company also competed fiercely by foreign pharmacy companies,especially in western medicine aspect as from 2009, foreign pharmacy companieswere allowed to establish branches and operate in import and export medicine as inthe commitment process with WTO

Famous groups such as Sanofi-Aventis (France), GSK (England), Servier(France), Pfizer (USA)…have arrived in Vietnam and completely occupied thedomestic market for special treatment market share and are trying to involve deeper in normal pharmacy

b/ Competitive advantages of medicine products

Medicine industry is promising sector development and less subject to competition

Medicine products are mainly classified into groups of OTC drugs without aprescription and are entitled to the distribution of advertising and marketingcompany's products will be easier Besides the demand for herbal medicinesincreasingly, tendency to use the products from original nature in both domestic andforeign countries increases gradually Pharmaceutical industries generally have

34

barriers to entry are relatively high levels and another advantage is the array ofmedicine Traphaco less subject to competition when Vietnam opens itspharmaceutical industry in 2009 because most companies foreign manufacturers ofmedicines.

Supply of raw materials into a stable, high quality

With strengths in medicine, most materials of drug production are apharmaceutical company in the country (65%) The rest (35%) of raw materials formedicine production are imported directly from manufacturers or distributors of rawmaterials and pharmaceutical brand reputation in the world such as BASF(Germany), Andenex - Chemie (Germany), DSM (Switzerland), Linnea(Switzerland), In addition the company also has many suppliers in Asian marketslike Korea, Japan, China,

Company shares Traphaco has built and maintained relationships longtimecustomers and reputation with over 20 suppliers of raw material inputs and abroad.Along with planting 4ha of pharmaceutical raw materials Traphaco Sapa, andcompanies actively ensure that all material terms of the quality and quantity ofproduction for their business

Extensive distribution system, effective

Company shares have Traphaco distribution spread across 3 regions, capable

of providing fast, complete, timely items of 24 nationwide Especially during thepeak consumption of drugs, the company can supply 500% average monthly outputs

of key commodities The company has participated directly from production todistribution to take their products to consumers, while other pharmaceuticalcompanies have committed just stop at the stage of product distribution to level 2agents This helps companies manage better drug prices and reduce the cost ofmany other intermediary

Level of modern technologies and advanced

The company's factory standard of WHO GPs also welcomed the use oftechnology capacity and scientific and technical achievements, creating goodprerequisites for the company to new product research, sales continue to promoteand penetrate foreign markets in the future

Brand reputation, quality

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