Production, Processing and Distribution of Herbal Ingredients

Herbs laid on a table

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Production, Processing and Distribution of Herbal Ingredients
Production, Processing and Distribution of Herbal Ingredients
for Medicinal and Health Supplement purposes
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Biotechnology and Pharmaceuticals
Business Model Description

The business model may target different parts of the value chain, including herbal plantation (B2B), processing of herbal ingredients into medicines or supplements (B2B), or distribution of herbal medicines/ supplements (B2C). Investors may also choose to invest in companies that aim to set up the whole value chain from plantation to processing, and distribution of final products. Examples of companies active in this space are:

Lamdong Pharmaceutical Company provides lado actiso, which enhances liver, gallbladder, kidney, and digestion functions; lado herbal for use in preventing and curing health. Louis Capital agreed to acquire a 10.23% stake (1.3 million shares at an undisclosed value) in Lamdong Pharmaceutical on December 8, 2021.

Expected Impact

Increase the supply of quality ingredients from domestically produced sources, addressing the issue of a large volume of herbal ingredients imported from sources with unassured quality.

How is this information gathered?
Updated: 9 Dec, 2022
Vietnam
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Zero Hunger (SDG 2)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)

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Sector Sources
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IOA Sources
  • 13) Statista. (2022, Apr 20). Current health expenditure per capita in Vietnam from 2010 to 2019. Retrieved from https://www.statista.com/statistics/1107441/vietnam-health-spend-per-capita/ 21) PhytoPharma. (n.d.). Retrieved from https://www.phytopharma.vn/ 21) Vietmec. (n.d.). Retrieved from https://duoclieuvietnam.com.vn/ 22) Minh, H. (2021, Feb 10). Người Việt ngày càng dùng nhiều thuốc từ dược liệu. Retrieved from https://laodong.vn/suc-khoe/nguoi-viet-ngay-cang-dung-nhieu-thuoc-tu-duoc-lieu-875055.ldo 23)Mediplantex. (2017, Dec 12). Báo cáo tài chính Mediplantex. Retrieved from http://www.mediplantex.com/upload/download/84a4bd3e00762dd79a0ce27157500200.pdf Nam Duoc. (n.d.). Báo cáo tài chính. Retrieved from https://namduoc.vn/co-dong/bao-cao-tai-chinh-2 24) Minh, Q. (2021, Oct 15). Ẩn họa chất lượng dược liệu Trung Quốc nhập lậu. Retrieved from http://daidoanket.vn/an-hoa-chat-luong-duoc-lieu-trung-quoc-nhap-lau-5669277.html 25) Government of Vietnam. (2021, Mar 17). Quyết định 376/QĐ-TTg Chương trình phát triển công nghiệp dược liệu đến 2030. Retrieved from https://luatvietnam.vn/y-te/quyet-dinh-376-qd-ttg-chuong-trinh-phat-trien-cong-nghiep-duoc-lieu-den-2030-199893-d1.html 26) Government of Vietnam. (2013, Oct 30). Phê duyệt quy hoạch tổng thể phát triển dược liệu đến năm 2020 và định hướng đến năm 2030. Retrieved from http://vbpl.vn/TW/Pages/vbpq-toanvan.aspx?ItemID=55137 27) Ministry of Health. (2018, May 15). Thông tư Quy định về chất lượng dược liệu, thuốc cổ truyền. Retrieved from http://vbpl.yte.gov.vn/van-ban-phap-luat/thong-tu-132018tt-byt-.6.2010.html 28) Ministry of Health. (2018, Sep 12). QUY ĐỊNH VIỆC ĐĂNG KÝ LƯU HÀNH THUỐC CỔ TRUYỀN, DƯỢC LIỆU. Retrieved from https://thuvienphapluat.vn/van-ban/The-thao-Y-te/Thong-tu-21-2018-TT-BYT-dang-ky-luu-hanh-thuoc-co-truyen-duoc-lieu-396302.aspx 29) Ministry of Health. (2016, Jan 21). Quy định VỀ HOẠT ĐỘNG KINH DOANH DƯỢC LIỆU. Retrieved from https://thuvienphapluat.vn/van-ban/Thuong-mai/Thong-tu-03-2016-TT-BYT-hoat-dong-kinh-doanh-duoc-lieu-2016-302826.aspx 30) Government Online News. (2019, Jan 4). Các chính sách ưu đãi tín dụng cho doanh nghiệp ngành y tế. Retrieved from http://baochinhphu.vn/Tra-loi-cong-dan/Cac-chinh-sach-uu-dai-tin-dung-cho-doanh-nghiep-nganh-y-te/356064.vgp 31) Pricewaterhouse Cooper. (2021). Sổ tay thuế Việt Nam. Retrieved from https://www.pwc.com/vn/vn/publications/2021/pwc-vietnam-ptb-2021-vn.pdf