Traphaco: Difference for Success

 

Medicine has direct effects on the health and life of patients. Thus, for Traphaco, product quality is a vital factor and it is fully committed to its missions of taking care of people. On that standpoint, Traphaco has built resources based on differentiated value chains: Product research - Clean medicinal plant development area - GPP WHO drug production plant using environment friendly technologies - ISO 140001:2004 and ISO 9001:2008 environmental management system application, total quality management (TQM), Japanese Kaizen 5S management tool - Distribution system development coupled with corporate social responsibility. This value chain has clearly shown the company’s green health strategy of pursuing and exploiting biodiversity strengths of Vietnam and long-standing rich traditional medicine to develop herbal medicines.

 

The company researches about 20 new products a year on average and is thus considered a leading medicine R&D company in the country. Thus far, Traphaco was licensed to sell more than 200 products on the market by the Drug Administration of Vietnam (DAV). Products are made in modern ease of use dosage forms like hard capsules, soft capsules, syrups and powders.

 

To control the quantity and quality of pharmaceuticals and ensure stable development of strategic products, the company has developed 154.8 ha of key medicinal herb areas in accordance with WHO GACP standard (Good Agricultural and Collecting Practice). In addition to self-supplying more than 71 per cent of inputs, Traphaco also creates jobs for thousands of workers, especially residents in far-lying and mountainous areas, acquires and uses local knowledge and experience in using medicinal plants, and collaborates with scientists to find highly effective treatment formulas.

 

Besides, the company applies green technologies to extract preparation and persistently and unwaveringly sticks to three platforms: Traditional identity, in association with green technology, and high-quality human resources to create advanced effective, safe products to meet consumer expectations.

 

According to official statistics, Traphaco retains its position as the No. 1 producer of herbal medicines in Vietnam and is widening its lead over competitors. This product line sees annual revenue growth of 28 per cent, accounts for 56 per cent of the company’s total revenue, and contributes 70 per cent of its profit.

 

Some key products of the company can compete with any imported products in the Vietnamese market. For example, brain boost medicine generated VND262 billion of revenue in 2012, accounting for 18.7 per cent of the company’s total revenue, and Boganic raked in VND240 billion of revenue, accounting for 17.1 per cent of total revenue. According to a survey by IMS market research firm, as of mid-2013, Traphaco Boganic ranked 8th among the best selling pharmaceuticals in Vietnam. Boganic took the lead in liver protection drugs. This result demonstrates the trust of consumers in a truly domestic pharmaceutical.

 

To provide more opportunities for consumers to access and experience its products and thus increase their trust in Vietnamese traditional medicines, Traphaco has built a nationwide distribution network in all 64 provinces and cities with 15 branches, nearly 50 agents and three associated companies (Thai Nguyen Pharmaceutical and Medical Equipment Company, Quang Tri Pharmaceutical and Medical Equipment Company and Dak Lak Pharmaceutical and Medical Equipment Company). Traphaco has a highly qualified, professional and well-trained sales and customer care staff, and possesses modern GSP-standard facilities. The professional distribution system has brought high-quality products with unified prices directly to consumers throughout the country.

 

Every year, Traphaco organises thousands of free health check trips for the elderly and Red Cross associations in Hanoi and many provinces in the country.

Traphaco has established a firm position as the No. 1 pharmaceutical brand in Vietnam, Top 10 Vietnam Gold Star Award 2013, Top 10 Typical CSR Enterprise Award, National Value Golden Award, "Best in Class" Title of Asia - Pacific Quality Award, and International Best Enterprise Award by the European Business Association (EBA).

 

Vietnam is negotiating the Trans-Pacific Strategic Economic Partnership Agreement (TPP). Traphaco leaders said, to prepare for this new situation, the company will be steadfast with the chosen green health path, expand its professional distribution network, invest to research and develop differentiated, advanced products from Vietnam's medicinal sources, and develop human resources.

 

With its own identity, Traphaco will contribute to the development of the Vietnamese pharmaceutical industry with premium pharmaceutical products capable of reaching the international market.