China-Vietnam cooperation: A pharma company's 23-year journey

Editor's note: Tran Van Cuong is general director of VCP Pharmaceutical Joint Stock Company. The article reflects the author's opinions and not necessarily the views of CGTN. 

CGTN presents a special series on the role of China's centrally administered SOEs in the Asia-Pacific, in collaboration with China's State-owned Assets Supervision and Administration Commission (SASAC). The series explores their contributions to regional connectivity, green transition, the digital economy, industrial cooperation and people's livelihoods, with insights on building a shared future for the region.

As the 33rd APEC Economic Leaders' Meeting approaches, the theme "Building an Asia-Pacific Community to Prosper Together" resonates across the Asia-Pacific region. As General Director of VCP Pharmaceutical Joint Stock Company (VCP), I have walked through our pharmaceutical workshops in Hanoi countless times. Whenever I see boxes of powder antibiotics for injection bearing the Sinopharm logo roll off the production line and make their way to more than 20,000 retail pharmacies across Vietnam, I am reminded of something: that the 23-year journey of a Chinese pharmaceutical company can also serve as a vivid testament to the mutual benefit and shared prosperity that define cooperation across the Asia-Pacific.

23 years ago, the site was still undeveloped land. In 2003, China Sinopharm International Corporation, a subsidiary of Sinopharm, invested in Hanoi to establish VCP Pharmaceutical Joint Stock Company, the first Sino-Vietnamese pharmaceutical joint venture in Vietnam and the country's first manufacturer of powder antibiotics for injection to meet the World Health Organization's Good Manufacturing Practices (WHO-GMP) standards. From a fledgling enterprise to a flourishing business, VCP has spent 23 years making Chinese-made medicines trusted products that Vietnamese people can count on.

For a company to expand overseas, it must first establish a firm foothold in its host market. To this end, we have developed a framework comprising three sales channels and one digital platform. Through the ethical drug channel (ETC), we participate in Vietnam's national and provincial centralized procurement programs, achieving 95% coverage across the country and a 25% market share. Since 2019, our over-the-counter (OTC) business has grown through close partnerships with Chinese companies specializing in traditional Chinese medicine (TCM), bringing high-quality TCM products into local production and reaching more than 20,000 retail pharmacies. 

Our online sales channel has opened up new avenues for growth through partnerships with e-commerce platforms such as Lazada and Shopee. Meanwhile, our independently developed distribution management system (DMS) platform leverages digital technologies to improve operational efficiency and management. To date, VCP has supplied a cumulative total of 160 million doses of powder antibiotics for injection to the Vietnamese market. These figures are more than just statistics on a balance sheet; they represent the deep roots we have put down in Vietnam.

Putting down roots is only the beginning; what matters even more is delivering tangible results. Chinese companies venturing overseas bring far more than products. At VCP, we have integrated China's technological expertise and raw materials with the Vietnamese market, adopting a model that combines the entire production and supply chain, as well as technology transfer and services to facilitate the global expansion of traditional Chinese medicine. 

What makes us even prouder is our commitment to localization. Of VCP's 231 employees, 99% are Vietnamese. Our workforce includes 82 pharmacists with university degrees in pharmacy and 62 with intermediate-level qualifications in pharmacy. Through our pyramid-style training system, local professionals have increasingly taken on leading roles. A company's long-term success overseas depends not on how far it ventures, but on how deeply it takes root and how much it contributes to the development of its host country.

China and Vietnam are connected by mountains and rivers, and share a common future. VCP's two decades of development offer a glimpse into how Chinese enterprises can not only go global, but also become deeply rooted in local communities. Our journey is also a vivid example of the Asia-Pacific's commitment to openness, cooperation and mutual benefit. Looking ahead to the next two decades, as a pioneer among Chinese pharmaceutical enterprises in advancing the Belt and Road Initiative, we will remain true to our founding mission and commitment. We will continue to enhance the prestige of the Sinopharm brand, ensure that the benefits of development are shared locally, and turn the vision of common prosperity into reality. In doing so, we hope to make even greater contributions to strengthening pharmaceutical cooperation between China and Vietnam, and building a China-Vietnam community of health for all.