I make Vietnamese traditional medicine for national pride: former car distributor

Why did you make a sudden change from luxury car distribution to Vietnamese traditional medicine?

For money [laughing]. During the pandemic period, many kinds of services were paused and people could buy only basic necessities, medicine, and health products. I realized that making medicine did not stop, which is the first reason I chose it.

The second reason is that I prefer areas where few people want to be in. And my national pride is very strong, I want Vietnamese medicine not to be dependent on foreign countries.

I know that when one visits China, you want to buy Cordyceps and some other health products despite high prices. I thought we could make similar products based on our established Vietnamese traditional medicine sector, which has lots of experience.

But in April 2022, the Ministry of Health’s food safety department fined your company for having advertised health products that function as medicine. What do you think?

The fine was related to our product Lumedi-V, which helps stop coughing quickly and makes breathing easier. During the pandemic period, I asked my R&D team to develop products that can help patients rapidly. Lumedi-V was introduced based on Vietnamese traditional medicine formulas. The combination stops coughing quickly and does not cause liver or kidney toxicity.

However, I didn’t know how to market it, because this is a health product, not medicine, so I can’t advertise it. At the time, Ho Chi Minh City was undergoing serious Covid-19 outbreaks. I gave the product to 19 nuns positive for the virus in Tu Khanh pagoda. Only one of them passed away due to old age, with the other 18 recovering from the Delta variant within five days. Later, the nuns introduced Lumedi-V to Buddhist followers. At the same time, we donated this product to other patients. After recovering, all of them called it “medicine”. We posted user feedback on our website and got fined. It is a Ministry of Health regulation. However, it was also good news for us as our product worked well and had been accepted.

What potential can you see in this new business while your roots are not in the medical profession?

People asked why we did not make investments in plants or building sources of medicinal herbs. My answer was no need. The important issue is to understand what the market needs and how to promote products. Once you have set up your footprint, suppliers will come to you on their own, and I can select the best ingredients. My roots are not in the industry but I know the principles and can master quality control regarding input.

Our products are all based on traditional medicine, which has been used for thousands of years. Now we combine the best ingredients with science and technology.

For example, each Bao Lac Hoan capsule by us has a fresh oyster. We use technology to process the oyster by lowering it to minus 40 degrees to retain the original drug, then apply nanotechnology.

Many people in the industry hold that we have created a new consumption trend, especially the consumption of health products. In fact, the market is very large, no one can do it all. There is no need to wait for an epidemic, there is a niche market every day. If we care deeply about the needs of our customers, we will know where to find them.

Pharmacies distribute drugs and medical products. But we have a different approach. We do not place our products into any distribution system. We have our own shops, where we care for our customers and help them learn about the origins of our products. They can also return the items to us or change them for others when they want. Because they are our partners.

Not all enterprises dare to follow this route because of the high risks of a media crisis in case a customer is not satisfied with what he or she buys. Companies that dare to do this are extremely brave - with a total control system for product quality.

I have seen lots of niche markets for my company. Doing research is our way to introduce diverse products.

It sounds interesting. Can you share your management experience regarding your new business?

Currently, FMCG is an industry with hundreds of thousands of points of sales and ok management. Therefore, what you need is someone with management experience.

For me, I just place products of an industry into the system of another industry, then adjust it a little bit to make a fit.

For example, at drugstores and supermarkets, there is no real customer care, or if there is any, it involves an absence of people-to-people interaction. We are different, our delivery staff can also serve as consultants who visit customers at home.

Besides, our shops are located in populated areas to minimize logistics costs. We are about to open small shops at the foot of office buildings to serve customers during business hours.

What are the advantages and disadvantages of your new business?

I have few difficulties. Being a brand new man in the sector, I am not affected by the old philosophy of it. I’ve brought business ideas from other industries, especially FMCG, into the drug industry. That’s why I made a difference and have no competitors. In addition to manufacturing, we have also launched a new medical service to help customers deal with psychological issues, without competition.

In 2022, we collaborated with Vietnam Psychotherapy Association to establish a mental health company. It provides mental health examination, screening, assessment and therapy services to clients via a team of psychiatrists and psychologists.

From 2023, we will conduct psychological assessment services for staff mental health at enterprises and organizations. Aware of their employees’ psychology, leaders can make appropriate adjustments, helping employees work more productively and efficiently. Especially, with listed companies, it is possible to make their stock value increase. This project helps me earn a lot of money while creating lots of social value.