South Korea's Dongwha Pharm Acquires Majority Stake in Vietnam's Trung Son Pharma
Dongwha Pharm, a South Korean company, has announced its acquisition of a 51% stake in Trung Son Pharma, a chain of pharmacies in Vietnam. The deal, valued at nearly $30 million, is expected to be finalized by October this year.
Trung Son Pharma, established in 1997, operates over 140 pharmacies primarily in the southern region, with the highest concentration in Can Tho city. Last year, the company reported a revenue of $56.5 million from the sale of various healthcare products. This acquisition will provide Dongwha Pharm with an entry point into the Vietnamese market for over-the-counter drugs, cosmetics, and functional foods.
Dongwha Pharm, founded in 1897, is the first established pharmaceutical company in Korea and is involved in the development, production, and distribution of a wide range of healthcare products. Following the acquisition, Trung Son Pharma is anticipated to expand its network to 460 stores by 2026. Vietnam’s retail pharmaceutical market, with over 50,000 mostly small-scale pharmacies, is projected to grow from $7.7 billion in 2021 to $16.1 billion by 2026, potentially even higher.
By 2030, the market’s total value is predicted to reach around $13 billion. Notably, three leading chains in the market include Long Chau, Pharmacity, and An Khang, with Long Chau being the only profitable one in 2021, while the others are yet to turn a profit.