Duoc Hau Giang Joint Stock Company (DHG Pharma)

1. General introduction

DHG Joint Stock Company is one of the top units in Vietnam’s pharmaceutical industry, with a history spanning over 40 years. The predecessor of DHG is the State-owned Pharmaceutical Enterprise 2/9, established on September 2, 1974. DHG is innovating and has a large number of drugs on the market to provide to consumers.

2. Development cooperation

5 years of international upgrading with Japanese partner Taisho: After 3 years of cooperation and support from Taisho, DHG Pharma marked an important transformation with 2 production lines meeting Japan-GMP standards, helping to improve quality and increase the competitiveness of products according to global standards. At two Japan-GMP lines, nearly 300 company technicians currently operate 32 professional pieces of machinery and equipment. This is the result of the company’s personnel being trained in many forms: professional training in Japan, practical training at the factory in Vietnam, and online exchanges between the two ends of the bridge.

In 2018, Vietnam Dairy Products Joint Stock Company (Vinamilk) and DHG Pharma signed a strategic cooperation agreement on product research and development to meet health care needs and create new living values for the community. With the fundamental strengths of two leading enterprises in the industry, Vinamilk and DHG Pharma will have active coordination in research and development (R&D), marketing, and distribution of product lines and functional foods. Besides, it will be a bridge to introduce partners, customers, and scientific research to create new values, aiming to provide domestic and foreign consumers with beneficial products for health with international quality for a healthier life.

DHG Pharma has had a strong cooperation with Pharmacity for more than 7 years. In 2022, they marked their sustainable partnership by exclusively distributing the ALFE Water Collagen project.

3. Research & Development activities

DHG Pharma has always been a pioneer in innovative research and development of diverse products to adapt the healthcare services of people nationwide.

The main types of products that DHG Pharma manufactures and trades are pharmaceutical products, dietary supplements, and cosmetics.

The total investment for research and development in 2013 was 36 billion VND. Currently, DHG Pharma has 398 products issued with circulation numbers nationwide, including:

120 new products
11 bioequivalence products announced by the Ministry of Health on the website of the Drug Administration of Vietnam
7 bioequivalence products are waiting for an announcement by the Ministry of Health.

DHG Pharma invests in building the Research and Development Department (referred to as R&D) and Research Center.

Scientific and technological research to serve the company’s long-term development strategy is always considered a key and top task of DHG. Maximizing the effective exploitation of existing resources and developing new potentials contribute to the improvement of a company’s competitiveness and ensure sustainable development.

DHG Pharma pioneers in-depth investment strategies for researching new active ingredients, searching for special technologies, and creating unique product lines that have competitive advantages in the market and bring benefits to consumers. The well-known products such as Haginat, Klamentin, Hapacol, Eyelight, Unikids, etc., or product groups with active ingredients from nature such as Naturenz, Spivital, etc., are great examples to prove the attractiveness of DHG products in the market and are typical of DHG’s success in recent times.

4. Production

DHG produces many types of dosage forms, including tablets, soft capsules, effervescent, syrup, liquid medicine, creams, oral suspensions, and herbal products.
Totally, DHG Pharma has 300 products nationwide, which are divided into 12 groups: antibiotics, antiparastic fungi, nervous-ophthalmic, analgesic-antipyretic, respiratory, muscolosketal, gastrointestinal-hepatobilinary, cardiovascular-diabetic drugs, beauty-care, dermatology, vitamins, and minerals. Many products are produced in large batches, shortening the production cycle and saving costs and business capital to finance production activities.

Large production scale, high demand for raw materials, and frequent replacement changes. Therefore, functional departments have proactively imported and stored raw materials at low prices to promptly meet production needs.

5. Development plan

The company has proposed the 2023 business plan with net revenue of 5,000 billion VND and pre-tax profit of 1,130 billion VND, an increase of 18.5% and 32.5%, respectively compared to the planned target for 2022.

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