Phân tích môi trường kinh doanh Vietmedical-VMED group 2021

Contents

Introduction
Conclusion
Reference

Introduction
As a Junior Business Analyst for the Business Planning Team, I will offer
the process, strategy, and training activities in this project with the goal of
enhancing and expanding the company's opportunities. I'll go through the various
types, sizes, and scopes of organizations, as well as the interrelationships between
the many roles inside an organization and how they connect to the organizational
structure.

I.

Overview of market.
A.

Market define.
- The current study captures the market value of the Vietnam Medical
Industry.
- The medical industry includes a large group of businesses, such as the
supply, import, distribution, retail and manufacture of medical devices.
B.

Market size.
In the fourth quarter of 2020, the Vietnamese economy increased by 4.5
percent year on year, with a full-year growth rate of 2.9 percent. In 2021, the
Vietnamese economy is predicted to grow substantially, with a GDP growth

prediction of 8.6%. According to WHO estimates, Vietnam would spend 5.7


percent of GDP on health in 2020, amounting to $15.4 billion USD. However, the
need for medical equipment has not been fully addressed, necessitating additional
expenditure. In 2021, the expansion of Vietnam's medical services will be driven
by the economy's recovery and increased investment in the health system as well
as health operations services. With a regulated market of USD 1,677.4 million,
Vietnam Medical Equipment Market Nam is the ninth largest school in the Asia
Pacific region, representing for 0.4 percent of the global market share. Vietnam is
one of the fastest developing countries in the area, with a compound annual
growth rate of 10.2 percent. Domestically exported medical equipment, on the
other hand, is restricted to commodity enterprises, with imported products
representing for about 90% of the market. Currently, a number of global firms who
have established production plants in Vietnam are reaping significant benefits, the
most notable of which are reduced production and labor costs.
C.

Market development trends.
Economic growth along with the development of facilities as well as the
quality of life of people in Vietnam promote the development of Vietnam's health
sector strongly. According to a report from the Social Insurance Agency, by 2019,
89 out of every 100 Vietnamese people will have health insurance, which means
that the need for care and health care for the entire population is increasing. it also
opens up opportunities for the development of the medical device supply industry.
Moreover, while the covid-19 pandemic is having extremely unpredictable
developments, this field will continue to have great opportunities for development.
According to the EU-Vietnam Free Trade Agreement (EVFTA) approved
by the government in June 2020, companies manufacturing and distributing
medical equipment will receive significant benefits. In particular, the Agreement

brings about improvements in standards governing the exchange of information on
customs requirements and simplifies customs procedures. This is really a great
opportunity to open up the extremely strong development potential of this industry
D.

Sub-sectors in the industry.
1.

Private firms

A sole proprietorship is a business that is owned and operated by a single
person who is completely accountable for all of his or her assets and all business
activities. A sole proprietorship is the simplest and oldest type of company entity.
The business owner is personally liable for the company's financial
responsibilities, not only for the initial investment, but also to bring personal assets
to meet the company's debts. (Pursuant to Article 183 of the Enterprise Law 2020)
2.

Public firm

According to Clause 11 Article 4 of the Vietnam Enterprise Law 2020
stipulates: “State-owned enterprises include enterprises in which the State holds
more than 50% of the charter capital, the total number of shares with voting rights
as prescribed in Article 88 of the Law on Enterprises. this law”.
State-owned firms are frequently socially accountable, operate for the
benefit of the public, and were created to address economic failures. As a result,


unlike private businesses, SOEs do not aim for and do not need to maximize
profits.

3.

Voluntary

A voluntary organization, often known as a non-profit organization, is one
that does not transfer surplus funds to individuals or shareholders, instead of using
them to further the organization's objectives. directed at the entire society. (Boris and
Mosher-Williams, 1998). Charities, trade associations, and community arts organizations
are examples of this type of organization. Most governments or government
agencies meet this criterion, although they are classed as a different sort of
organization in most countries and are not recognized as not-for-profit
organizations.
Non-profit organizations direct their activities towards community and
social activities. One way or another, they accept large expenses in return for the
other value they need.
E.

Type of organizations.
In the medical device sector, there are various sorts of organizations.
Medical devices are useful in a variety of ways, thus there are a variety of
companies that make and distribute them. The following are some of the most
common categories used to categorize medical device companies:
•
•
•

•
•
•
•

•
•
•
•
•

 Purpose
Manufacturers: These businesses are devoted to the development and
manufacture of medical items and devices. Some will promote their items
themselves, while others may delegate this responsibility to others.
Suppliers: This sort of company sells materials like plastics and metals that are
used to make medical gadgets and products. They also offer consultation and
research and development services (R&D).
Regulatory agencies: They regulate and standardize the manufacturing,
importation, exportation, and distribution of medical equipment to ensure that
they are safe.
 Ownership
Private
Public
Voluntary
 Legal structure
Sole trader
Partnership
Limit company
 Size
Small
Medium
Large

II.

Factsheet
A.

DANAMECO Medical Equipment Joint Stock Corporation
1.

Background detail

The predecessor of DANAMECO Medical Corporation is the Quang Nam Da Nang Medical Supplies Station, established in 1976 by the Quang Nam - Da
Nang Department of Health, to perform the task of receiving medical aid goods.
When Quang Nam Da Nang Province was split into two administrative
entities in 1997, the Company was renamed Medical Equipment Company and
returned to the Ministry of Health as a member unit of Vietnam Medical
Equipment Corporation. The Minister of Health issued Decision No. 34/BYT-QD
on January 13, 1997, establishing the 3rd Central Health Service in Da Nang.
The Company was renamed DANAMECO Medical Joint Stock
Corporation in 2004, in accordance with Minister of Health Decision No.
3596/QD-BYT dated October 12, 2004, and formally began operations under the
model of a joint stock company on 7/2005.
2.

The product and services

• Medical equipment industry
- Manufacture of drugs, pharmaceutical chemicals and medicinal herbs.
- Manufacture of medical supplies, equipment, medical, dental, orthopedic
and rehabilitation equipment.
- Distribution of machinery, equipment and spare parts for medical

equipment.
- Distributing testing chemicals, anti-epidemic chemicals, germicidal
chemicals, scientific and technical equipment, and production equipment in
the pharmaceutical industry.
• Service
- For the medical and civil industries, we provide consulting and building
services.
- Host workshops to teach individuals how to use medical technology and
equipment.
3.

Vision

Becoming one of the leading corporations in research, production, sales of
drugs, medical equipment and supplies, and leading multi-industry business in
terms of prestige, product quality and market share in Vietnam and the region.
4.

Mission

“DANAMECO - For the purpose of public health and constantly
developing”
Our mission is to promote human health in a safe and long-term manner.
Every day, we invest in knowledge, people, technology, and innovation to offer
high-quality, user-friendly products that are compatible with and ahead of the
changing healthcare market globally.


5.

Business objective

Screening and selecting advantageous business products for investment to
accelerate, occupy at least 60% of the domestic market share and boost exports.
Improve and diversify established distribution channels while expanding
and diversifying alternative distribution channels to reach the DANAMECO
product consuming market and ensure direct access to customers. To optimize
mutual benefits, a group of target customers was formed.
Increasing the market for consumables, such as disposable medical masks,
protective equipment, and surgical costumes. Promote the export of Danamecomade items to international markets in order to maximize efficiency.
6.

Size and Scope

According to Vietnamese law, Danameco Health Joint Stock Corporation is
a major enterprise. In the central provinces, the firm is the exclusive distributor of
medical instruments and supplies for the Ministry of Health. The company's
annual market share exceeds 50%, and it serves conventional customers such as
hospitals, epidemiological centers, and institutes around the country. The main
market in the Central region is hospitals and health departments, with a gross
profit margin of over 20% per year. The company's income in 2020 is expected to
be more than 700 billion VND, with a market valuation of up to 43 billion VND,
510 employees, and two manufacturing sites.
7.

-

The Organization & Legal structure

Legal structure:

Danameco Health Joint Stock Corporation is a public company under the
Ministry of Health of Vietnam specializing in manufacturing, marketing, selling
and distributing a portfolio of medical products. The company is listed on the
HNX Stock Exchange with the code DNM and employs more than 510 employees
during its operations.
-

Organization structure:


8.

-

-

Stakeholders information

Manager: the management department of Vietnam Medical Equipment
Corporation, including the General Meeting of Shareholders, the Board of
Directors, the Supervisory Board, and the Board of Directors.
Employees: Employees are the most important contributor and play a
critical part in the growth of the company.
Owner: Domestic shareholders account for 94.32% and 5.68% are foreign
shareholders.
Government: Because governments are in charge of regulating medical
equipment, they play a critical role in assuring their safety. It is the role of
the government to monitor how medical devices are utilized, to inspect
manufacturing facilities, and to control the distribution of these items.

Bank: Bank credit provides sufficient capital to keep the process of
continuous and expanding manufacturing and economic activities moving
forward.
Subsidiaries: DANAMECO Quang Nam Co., Ltd
9.

Discussion

As you mentioned Danameco has a legal form of public company. The
following will show the relationship between structure, size and scope and
business objectives and product and services offered by the organization.
Public companies are formed for a variety of reasons, including raising
cash, expanding operations, and entering joint ventures with other companies.
Shareholders can possess either common shares or preferred shares in publicly
traded companies. If they require additional funds, they can sell their stock on the
stock exchange.


Because they are not concerned with protecting their trade secrets, public
companies have fewer stringent rules than private corporations or partnerships.
This means they can employ more aggressive accounting procedures than private
businesses, allowing them to attain higher growth rates in a shorter period of time.
B.

Vietmedical Joint Stock Company
1.

Background detail

Exclusive distribution of high-end product lines belonging to leading

brands in the world such as GE Healthcare (USA), Medtronic (USA), Anios
Laboratoires (France), Stryker (USA), Braincool (Sweden), UOC (USA) Taiwan), Alvo (Poland), Ulrich (Germany), Phillips (Philippines), Vietmedical is a
member of the VMED Group, which is known as the leading company in the field
of medical equipment distribution in Vietnam (Netherlands)...
2.

The product and services

• Distribution Block

Import and distribute medical equipment for Anesthesia & Emergency
Resuscitation industries such as anesthesia machines, ventilators, cardiovascular
diagnostics, patient monitors... for emergency departments, operating rooms,
recovery rooms …, orthopedic trauma industry with artificial products for hip,
knee, spine…, infection control, surgery, ultrasound, infrastructure.
• Service
- “24/7 technical service” in warranty, maintenance, repair and user training.
- Organize workshops to teach people how to use medical equipment and
technology.
3.

Vision

Becoming one of the leading corporations in research, production, sales of
drugs, medical equipment and supplies, and leading multi-industry business in
terms of prestige, product quality and market share in Vietnam and the region.
4.

Mission

“VMED Group commits to a healthier and happier community”
5.

Business objective

VMED Group's mission is to become a medical technology company that
provides everything from modern equipment to hospital administration software,
medical examination and treatment management software, and treatment decision
assistance software.
6.

Size and Scope

According to the provisions of Vietnamese law, Vietmedical Joint Stock
Company is a large enterprise. Numerous Medical Associations and the Ministry
of Health have chosen Vietmedical as a partner with high potential, reliability, and
the ability to perform significant medical projects. Vietmedical has been picked as
a partner of many training programs, seminars, and yearly conferences. According
to the evidence, the company's income in 2020 is estimated to be around VND


6000 billion, with the product being a professional program to handle more than
14,000 locomotives at roughly 700 hospitals countrywide.
7.

-

The Organization & Legal structure

Legal structure:

Vietmedical Joint Stock Company is a private company specializing in
importing, marketing, selling and distributing a portfolio of medical products.
Although it is a private company, the form of Vietmedical is a joint stock company
and the list of shareholders of Vietmedical includes a number of major
shareholders such as:
Ms. Do Lan Phuong – Chairman of the Board of Directors, owns 45% of
charter capital
Mr. Nguyen Ngoc Hung – member of the Board of Directors, owns 28%
of charter capital
Ms. Phung Thi Hong Mai - member of the Board of Directors, owns
8.84% of charter capital.
Gorvement - owns 10% of charter capital
-

Organization structure:

8.

-

Stakeholders information

Manager: the management department of Vietnam Medical Equipment
Corporation, including the General Meeting of Shareholders, the Board of
Directors, the Supervisory Board, and the Board of Directors.
Employees: Employees are the most important contributor and play a
critical part in the growth of the company.
Owner: The owners play a very important role in the development of
Vietmedical from its inception to the present.

-

-

Government: Because governments are in charge of regulating medical
equipment, they play a critical role in assuring their safety. It is the role of
the government to monitor how medical devices are utilized, to inspect
manufacturing facilities, and to control the distribution of these items.
Bank: Bank credit provides sufficient capital to keep the process of
continuous and expanding manufacturing and economic activities moving
forward.
Holding company: Vmed Corporation
9.

Discussion

In the medical device industry, the prospects of a company are often
determined by how well it can forecast product demand and distribution. A
company will usually start with a small product that is distributed to a specific
region or country. As it acquires more money and more resources, the company
will then either scale up its production or develop new products that are targeted
towards different regions or countries.
To maintain their competitive advantage, these private companies need to
constantly innovate their products and services. They also need to establish
themselves as leaders in these industries by ensuring that they are well positioned
in terms of industry standards, regulatory compliance and safety regulations.

C.

Vietnam Public Health Association
1.

Background detail

The Vietnam Public Health Association (VPHA) is a professional social
organization that brings together members working in the field of public health
who join freely in order to collaborate on professional development in the
Vietnamese public health sector. The organization, which was founded on June 6,
2002, has a network that reaches throughout all three areas.
The Association is a member of the Central Committee of the Vietnam
Fatherland Front and an official member of the World Federation of Public Health
Associations (WFPHAs).
2.

The product and services

- The elderly's health - Tobacco's detrimental effects prevention
- Activities to decrease the adverse effects of Agent Orange/Dioxin -Eco
Health/One Health - Accident and injury prevention
- HIV/AIDS prevention - Cancer prevention
-Improving advocacy and policy implementation in the health sector
- Climate change adaptation
In addition, there are numerous public health research and intervention
projects.
- The elderly's health - Tobacco's detrimental effects prevention


-Activities to decrease the adverse effects of Agent Orange/Dioxin -Eco

Health/One Health - Accident and injury prevention
- HIV/AIDS prevention - Cancer prevention
- Improving advocacy and policy implementation in the health sector
- Climate change response, as well as numerous other research and
intervention activities in the field of public health.
3.

-

Gather and unite people working in the field of public health
Cooperate, help and contribute to the care and protection of people's health
Developing the major in public health in the country, integrating with the
region and the world
4.

-

-

-

Vision

Mission

Bring members together, unite them, and urge them to develop their
professional credentials, share experiences in public health activities, and
uphold professional ethics. Manage public health activities and practices of
members in collaboration with state management authorities.
Participating in programs, projects, consulting, evaluation, criticism, social

assessment, and providing public services in compliance with the
legislation in the association's spheres of activity.
Contribute suggestions to the Party's and State's guidelines and policies on
methods to care for, safeguard, and develop people's health and the public
health system, as well as to preserve the legitimate rights and interests of
public health workers.
Participate in health education communication for the people.
Conduct scientific research, disseminate experiences, coordinate training,
and improve members' operational capacity in the field of public health.
Protecting the legitimate rights and interests of members in accordance with
the law and the Charter of the Vietnam Public Health Association
5.

Business objective

Towards the Vietnam Public Health Association's goal of becoming a social
network and an effective public health practice in order to promote the Vietnamese
people's health. The Vietnam Public Health Association's common mission for the
2017-2022 period is to connect and strengthen research centers, as well as to
conduct pilot intervention models in three representative regions of Vietnam, in
order to build resources. The goal is to replicate social capital, expertise, and
public health practice across the country.
6.

Size and Scope

This is one of the most influential organizations in the field of medical
volunteering in Vietnam with 12 provincial networks More than 6000 members
and 3 field and research facilities
7.

-

The Organization & Legal structure

Legal structure:


The organization is a professional social organization, a collection of
members operating in the field of Public Health (Public Health) who voluntarily
join the Association. For the purpose of cooperating to develop the specialty of
public health in Vietnam.
-

Organization structure:

8.

-

Stakeholders information

Ministry of Health of Vietnam
Commerce University
Columbia University
National Centre of Competence in Research
World Federation of Public Health Associations (WFPHA)
Center for Supporting Community Development Initiatives (SCDI)
Viral Strategies
The Union

Vietnam Steering Committee on Smoking and Health
Southeast Asia Tobacco Control Alliance (SEATCA)
9.

Discussion

The size of a nonprofit will have a huge impact on the business goals and
the products and services offered. Specifically, in ... there is an extremely large
network in the territory of Vietnam, which helps them to concretize their visions in
the fastest way. Obviously the goal of these organizations is different from the
joint stock company and the private one is profit, Non-profit organizations have a
mission to help these difficult situations and for this society without requiring
investment profit.


D.

Stakeholder mapping

The Owner positions of both Vietmedical and Damameco are positioned in
the High power, high interest corner, indicating that both stakeholders have high
power and are very interested in the project, according to the Stakeholder
mapping. Their high degree of curiosity is a chance that you should take advantage
of for the sake of your project. Consumers of the Vietnam Public Health
Association volunteer organization, on the other hand, are found in the corner of
Low power, Low interest since the organization's goal is to assist underprivileged
individuals throughout society rather than focused on benefits. Customers from
non-profit organizations will be the only ones who shop at Monitor.

III.

Relationship between departments in Vietmedical
Below is the visual mapping of Vietmedical


We can see the company is divided into 2 separate parts: Back office and
business office. overview, the company splits the apparatus like this in order to
optimize productivity. The back office department is in charge of maintaining and
developing the essential foundations of the company such as financial, logistics,
supplier, etc., while the business office focuses on the functions that are directly
related to the service. Customers such as Sales, customer service,... Although they
are two separate departments, it is clear that these two departments have a close
relationship and support each other a lot to help the company achieve its
objectives.
In particular, the following is a specific case analysis of the combination of
accounting, marketing and Equiment business departments when placed into the
org structure. An information was said by Ms. Nguyen Thi Thanh Hue - Operation
Director of Vietmedical company that "to be able to ensure the smoothness in the
process of information transfer as well as to convey ideas and help each other,
Each department has one person from the HR department. so the connection
between the above departments will be as follows, the AM department of the
branches from Equitment business will aggregate orders and revenue from the
distribution of imported products of the company. Next, the information will be
forwarded to The finance department helps to ensure that resources are managed
efficiently by making sure that there are sufficient funds available to cover all
expenses- including production costs, research and development costs, marketing
expenses and more. Finally, Marketing will get information from the above
departments to orient the next marketing strategies to help businesses achieve their
objectives – “Becoming a medical technology company that sells anything from
cutting-edge equipment to hospital administration software, medical examination

and treatment management software, and treatment decision support software.”

IV.

Conclusions for Vietmedical’s structure
In general, it can be seen that the medical device industry has been and will
continue to be a market with huge potential in the future when people are
increasingly aware and interested in health. Vietmedical can completely manage
when the company develops larger with an internal apparatus arranged in a precise
and scientific manner as described above. More specifically, the company's Vision
can extend into the medical equipment manufacturing segments or help the Vmed
Group grow later, but Vietmedical will confront challenges with its current
business organization platform. It will be time-consuming, but it will be vital for
the organization to achieve its goals for many years to come.

Conclusion
Following the research, we discussed and examined specific situations from
various sub-sectors, organizational legal structures, and forms. The relationship
and assistance of the departments of the Vietmedical company were also
highlighted in the article.


Reference
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