Restructuring, pre-tax profit plan increases by 12%
After nearly a year since the right to represent state capital ownership at Vinapharm was transferred from the Ministry of Health to the State Capital Investment Corporation (SCIC), Vinapharm is undergoing many positive changes. Ms. Hàn Thị Khánh Vinh – Member of the Board of Directors, General Director of Vinapharm said that the consolidated total revenue in 2023 of Vinapharm reached 5,868 billion VND, an increase of 4% compared to the implementation in 2022 and basically completing the set plan. Pre-tax profit reached 425 billion VND, an increase of 222% compared to the implementation in 2022 and exceeding the plan by 27%.
 Ms. Hàn Thị Khánh Vinh – Member of the Board of Directors, General Director of Vinapharm
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Based on the information that the global pharmaceutical industry is expected to recover, Vinapharm plans its consolidated revenue at 5,955 billion VND and pre-tax profit at 475.9 billion VND, respectively increasing by 2% and 12% compared to the implementation in 2023.
At the General Meeting, the shareholders also approved the Vinapharm restructuring plan with major orientations including implementing the development of a modern and professional distribution system to enhance the distribution capacity of the Corporation and its subsidiaries; Increasing the charter capital at the subsidiaries and increasing the ownership ratio in member units with good growth rate, high dividend rate, and sustainable development orientation; Seeking investment opportunities in pharmaceutical enterprises outside the current list of member units to optimize the efficiency of capital use and take advantage of investment opportunities in the market; Receiving the transfer of branded/valuable products from multinational corporations for processing and manufacturing in Vietnam; Seeking domestic and foreign partners to implement the construction of pharmaceutical/biopharmaceutical manufacturing plants in Vietnam.
 The delegation chaired the General Meeting
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The General Meeting also approved the change in the organizational management and operation model of Vinapharm, in which at least 20% of the members of the Board of Directors must be independent members and have an Audit Committee under the Board of Directors.
Along with the change in the organizational and operational model, the General Meeting agreed on the number of members of the Board of Directors including independent members for the remaining term of 2021 – 2026 to be 05 members. Accordingly, the General Meeting elected Mr. Đỗ Mạnh Cường as an independent member of the Board of Directors for the term 2021 – 2026.
Plan to list shares
Answering the shareholder’s question about the plan to list the DVN shares, Ms. Hàn Thị Khánh Vinh said that the Corporation’s Board of Directors always recognizes the role and position of the Corporation in the Vietnamese pharmaceutical industry and the listing of shares on a stock exchange with high standards such as Ho Chi Minh City Stock Exchange (HOSE), Hanoi Stock Exchange (HNX) is always considered.
However, at the present time, the Corporation owns equity investment in 3 subsidiaries and 7 associated companies, these units use different accounting software systems, different audit service providers creating certain difficulties in the process of preparing the Corporation’s consolidated financial statements. The Corporation and its member and associate units are completing the construction of a unified accounting software system, a unified audit unit to resolve this issue; meet the standards on information disclosure, financial reporting in order to be listed on the HOSE, HNX exchanges.
The Corporation and its subsidiaries have worked with the consulting unit to discuss and agree on the conversion of ERP software, which has been deployed at CPC1 Company – one of the three subsidiaries of Vinapharm. The conversion of ERP software at the Corporation and its subsidiaries is the first step for the listing plan and the transfer of the trading floor.
In the coming time, the Corporation will consider developing a share listing plan at an appropriate time and ask for the approval of the shareholders.
Responding to the shareholders’ comments on the progress of increasing the ownership ratio in Sanofi Vietnam JSC (SVN) to 30%, Ms. Vinh said that according to the agreement signed between the SVN shareholders, one of the prerequisites for the Corporation to increase the ownership ratio in SVN from 15% to 30% is after the dissolution of Sanofi Synthelabo Vietnam Pharmaceutical JSC (SSV). Currently, the Executive Board of the Corporation and Sanofi are discussing and negotiating to shorten the time, in order to soon achieve the goal of increasing the Corporation’s ownership ratio in SVN to 30% at the appropriate time.
Sharing more about the strategy to become a leading unit in the field of manufacturing and distributing medicine in Vietnam, General Director Hàn Thị Khánh Vinh said that Vinapharm will continue to promote the potential and position of a unique Pharmaceutical Corporation with controlling capital contribution of State-owned Enterprises as well as will deploy several business strategies suitable to the actual situation, the development trend of the Vietnamese and global pharmaceutical industry with the goal of developing stably, sustainably, effectively, bringing benefits to shareholders.
On the stock market, at the closing price of the trading session on April 22, share DVN was traded at 18,100 VND/share.
