Pharmaceutical (drug) production in Vietnam is classified into two types based on the origin of the drug:
New medicine
New medicine was introduced to our country along with modern medicine (western medicine), so it is often called western medicine. Those are drugs produced from chemicals, some types of microorganisms, compounds from plants prepared in pure form or some natural compounds that are semi-synthesized into other substances. A small number of new drugs are prepared from animal products.
New drugs have a strong and convenient treatment effect, however, the main origin of new drugs is from chemicals, so they can cause some adverse side effects for patients.
Oriental medicine
Oriental medicine associated with traditional Chinese medicine, are drugs derived from plants (Medicinals) such as plants, stems, leaves, fruits, minerals, animals. Currently, some medicines are still prepared according to traditional methods, others are prepared in modern forms such as tablets, capsules, tea... to increase the convenience for users.
Oriental medicine has a slower treatment effect than new medicine, but oriental medicine can solve some chronic diseases according to the body's balanced conditioning mechanism. This is the unique strength of oriental medicine that modern medicine cannot deny.
In 2020, the Covid-19 pandemic affected many economic sectors of Vietnam, including the pharmaceutical industry. However, the survey results of Vietnam Report just conducted at the end of 2020 show that, compared to other industries, pharmaceuticals are one of the least affected industries because this is one of the essential products for people. Specifically, 64.3% of pharmaceutical enterprises responding to the survey said that they were moderately affected; 28.6% of enterprises assessed the impact was small and insignificant and only 7.1% of enterprises assessed that they were seriously affected.
The outbreak of the pandemic caused the demand for pharmaceuticals to spike, especially with drugs that strengthen resistance. Hospitals and individual customers all need to stock up on drugs to prevent epidemics. For enterprises in the medical supplies industry, the production and supply of medical equipment and protective equipment during the Covid-19 epidemic has contributed to a significant increase in revenue for these enterprises, even enterprises with net revenue and profit increased by three digits compared to the same period in 2019.
However, not all pharmaceutical and medical supplies businesses benefit, but the business situation of pharmaceutical enterprises is relatively diversified during the Covid-19 pandemic. In addition to large-profit enterprises with strong growth, the pharmaceutical industry also recorded many enterprises with a decrease in profits, including enterprises that recorded losses due to the impact of the epidemic. Although the situation has improved after Vietnam controlled the epidemic, according to the assessment of many businesses, the recovery level has not reached the same as before the pandemic. This is evidenced by the business results of domestic pharmaceutical companies that have hardly grown in 9 months. According to Vietstock's summary, in the third quarter of 2020, 18 pharmaceutical enterprises listed on the stock exchange generated nearly VND 8,796 billion in net revenue and VND 530 billion in net profit, respectively, decreasing by 4.9% and increasing by 7.6% over the same period.
The survey results also show the leading difficulties of pharmaceutical enterprises during the Covid-19 pandemic. Specifically, 78.6% of enterprises face difficulties when the demand of users of pharmaceutical products changes; 57.1% of enterprises have difficulty when approaching new customers, breaking the supply chain in business, increasing the price of input goods and 35.7% of enterprises have difficulties with competition between enterprises in the industry.
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The Covid 19 pandemic situation will continue to have a bad impact and cause many difficulties for the production - business activities of enterprises in general, the pharmaceutical manufacturing industry in particular. However, this is a favorable time for businesses to stabilize, re-regulate all activities, and move towards a comprehensive "DIGITAL TRANSFORMATION" of the company. If you want to be highly capable of improving management, increasing labor productivity, and increasing profit margins, you must digitize all core activities of the enterprise, which is the Application of ENTERPRISE RESOURCE PLANNING (ERP) SOLUTION. With successful deployment experience for many businesses in the industry, GMC's ExpertERP Solution will help your business achieve these key goals.
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OVERALL PROCESS
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INTERFACE OF SUBSYSTEMS
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