South Korea’s Dongwha Pharm said Thursday it will acquire a 51% stake in Vietnam’s Trung Son Pharma for KRW39.12 billion ($29.86 million).
In a filing with the Korea Stock Exchange, Dongwha Pharm, the first South Korean pharmaceutical company established in 1897, said the deal, equivalent to 12.15 million shares, is slated for completion in October.
Founded in 1997, Trung Son Pharma operates 141 drugstores in Vietnam, covering nine provinces and cities in the Mekong Delta and Ho Chi Minh City. Can Tho city has the largest number of outlets with 45 drugstores. It recorded revenues of KRW74 billion ($56.5 million) in 2022.
Dongwha Pharm said its latest acquisition aimed to facilitate its entry into the Southeast Asian pharmaceutical and beauty market. It said the new set up can see Trung Son’s network expand to 460 stores by 2026. Besides, Dongwha Pharm also plans to introduce many Korean products to Vietnam, including herbal drinks, functional foods, cosmetics and others items.
The value of Vietnam's healthcare market reached $20 billion in 2022, equivalent to 6% of the country's GDP, Deputy Minister of Planning and Investment Nguyen Bich Ngoc said at an event on pharmaceutical sector development in July. She also said the healthcare market value can reach $23.3 billion in 2025 and $33.8 billion in 2030.
The value of Vietnam’s pharmaceutical market alone increased from $3.4 billion in 2015 to $7 billion in 2022 and can reach $13 billion in 2030, she added.