Hanoi (VNA) - Vietnamese pharmaceutical companies are optimistic about the business prospects of the sector, as we🗹ll as its potential i💟n 2016-17.

This information was released in a survey alongside the top 10 most prestigious pharmaceutical companies in the country by the Ministry of Information and Communications and Vietnam Report Company (VNR) on October 25 in Hanoi. Accordingly, more than 70 percent of businesses expect that the sector’s growth rate would be over 10 percent, the remaining participants expected that growth would be lower. There was no firm believing that growth would be worse than that of last year. According to estimates from Business Monitor International (BMI), value of pharmaceutical consumption in Vietnam this year could maintain its high growth rate of 10.2 percent due to a young population and increasing incomes, together with rising attention to healthcare. However, the value of domestically produced pharmaceuticals accounted for only 45 percent of the total, with the majority being popular, cheap, and simple medicines. Most high value drugs were imported or distributed by foreign and joint venture companies. It was because of that local firms would face difficulties in improving current products, enhancing investment and developing new products with limited capital, human resources and capacity. Vietnamese pharmaceutical businesses have always been ready for challenges. Several local firms have sought ways to cooperate with foreign companies to take advantage of available markets and distribution channels instead of direct competition. The cooperation can help them attract capital, technologies and experience from big global groups. The survey also found that in addition to internal factors, prestige had been considered one of the important factors affecting production and distribution. Around 86 percent of surveyed firms believed that prestige had been the most important factor, while 14 percent believed that it had relatively big impacts. VNR said the survey on pharmacists and drug stores in Hanoi and HCM City showed that the medicine quality and treatment effectiveness should be given priority in building the prestige of pharmaceutical firms. The companies should undertake careful studies and production as the sector has a direct impact on people’s health. The marketing, sale, and distribution of healthcare should be supporting factors to improve prestige. VNR said the average turnover of the top 10 most prestigious pharmaceutical companies in 2015 was over 2 trillion VND. The result was based on three criteria of financial capacity performing on audited financial reports in the latest year, communication prestige and a survey on pharmaceutical firms and pharmacists on quality and distribution. Most of the companies in the list have stable financial capacity, long-term experience and potential for growth as well as high quality products and distribution.-VNA