Dongwha Pharm Acquires Vietnamese Pharmacy Chain for 39.1 Billion KRW... "A Foothold for Southeast Asia Expansion"

"Southeast Asian Market Establishes Itself as a Leader in K-Pharma and H&B"

Dongwha Pharm announced on the 3rd that it has signed a contract to acquire a 51% stake in 'Trung Son Pharma,' a Vietnamese pharmacy chain operator, for 39.1156 billion KRW.

Dongwha Pharm explained that the purpose of acquiring Trung Son Pharma is "to diversify its business through investment after acquisition." Specifically, it aims to make a full-scale entry into the Southeast Asian pharmaceutical and beauty markets and establish itself as a leader in K-Pharma and Health & Beauty (H&B). The scheduled date for acquiring the stake is October 31, and the acquisition amount corresponds to 10.15% of Dongwha Pharm's equity capital as of last year.

Founded in 1997, Trung Son Pharma operates a pharmacy chain in southern Vietnam, managing over 140 pharmacies. As of last year, it recorded sales of approximately 74 billion KRW and sells not only over-the-counter drugs but also H&B category products such as health functional foods, cosmetics, and medical devices.

In particular, Trung Son Pharma has about 1,000 pharmacists, which has contributed to a compound annual growth rate (CAGR) of 46% in sales from 2019 to 2022 through customer service. The number of stores increased from 23 in 2018 to over 140 last year. Trung Son Pharma plans to expand its market share by increasing the number of stores to 460 by 2026 through close collaboration with Dongwha Pharm.

Following this acquisition, Dongwha Pharm plans to promote the entry of over-the-counter drugs such as 'Hwalmyungsu,' 'Itch,' and 'Pancol' into the Vietnamese market. In addition to over-the-counter drugs, it will expand sales to health functional foods and cosmetics product lines to meet the growing demand for vitamins, red ginseng, and K-beauty products in the Vietnamese market.

A Dongwha Pharm official stated, "This acquisition of a Vietnamese pharmacy chain company is significant as it establishes a foothold for expanding into the rapidly growing Vietnamese pharmaceutical market and subsequently the Southeast Asian pharmaceutical and beauty markets." He added, "Based on our know-how as the longest-standing pharmaceutical company in Korea, we will introduce various pharmaceuticals, health functional foods, and cosmetics to the Southeast Asian pharmaceutical and beauty markets and establish ourselves as a leader in K-Pharma and H&B."