After acquiring Long Chau, FPT Retail established its subsidiary, FPT Pharma, with the charter capital of VND100 billion
The Board of Directors of FPT Retail (HoSE: FRT) has announced the resolution concerning the establishment of its subsidiary, FPT Long Chau Pharmaceutical JSC, referred to as FPT Pharma.
Accordingly, FPT Retail will hold 75% of FPT Pharma;s capital, equivalent to VND75 billion. The legal representative of FPT Pharma is Mrs. Nguyen Bach Diep, Chairman of FPT Retail.
FPT Pharma has the charter capital of VND100 billion, the head quarter is located in District 3, Ho Chi Minh City. Its main business activities are retailing medicine and drugs, medical equipment, cosmetics and toiletries in specialized stores.
FPT Retail has acquired Long Chau pharmaceutical chain in January 2017. At the 2018 shareholders’ meeting, FPT Retail has revealed their plans to expand 30 new stores this year. From now to 2022, FPT Retail is aiming to open 100 more stores, controlling 30% of the pharmaceutical market in Vietnam.
Mrs. Nguyen Bach Diep, Chairman and General Director of FPT Retail, shared that the management experience in the field of retailing digital devices will help FPT Retail achieve its ambition.
In June 2017, another big retailer, Mobile World, announced their plans to enter the business of pharmacy distribution. In December 2017, Mobile World officially acquired Phuc An Khang pharmaceutical chain.
Pharmaceutical distribution is a “slice of bread” with the retailers. According to the market research firm Business Monitor International, pharmaceutical retail sales will increase from USD4,7 billion in 2017 to USD7,7 billion in 2021.
According to the information from the Ministry of Health, the country now has 57.000 pharmacies. However, Vietnamese pharmacies are fragmented, with many small enterprises run by families.
Drug spending per capita has increased 4 times, reaching USD40 in 10 years from 1995 to 2015. It is expected to reach USD55 by 2021.
There are high opportunities for the retailers in Vietnam to reach the pharmaceutical distribution market. In 2007, when Vietnam joined the World Trade Organization (WTO), Vietnam did not commit the terms and conditions concerning the pharmaceutical market.
In Vietnam, health-related fields are considered national security issues. At the present, the Vietnamese jurisdiction does not allow foreign-invested enterprises to operate in the field of pharmaceutical distribution and retail.
Foreign investors can only enter Vietnam’s pharmaceutical market by the form of joint ventures with local partners or wholly foreign-owned enterprises that import and sell drugs and medicine to more than 1,000 domestic distributors.
According to Hoang Lan – Vietnamfinance