Development and Challenges of the Veterinary Medicine Manufacturing Industry in Vietnam

Veterinary medicine is one of the crucial factors ensuring the health and quality of livestock. However, the veterinary medicine industry in Vietnam faces numerous difficulties and challenges in production and quality management. After 20 years of operation in the field of developing software for managing veterinary medicine production, EnterSoft has conducted research and analysis on some challenges and underlying causes behind the current state of the veterinary medicine industry. Furthermore, they have proposed solutions for improvement.

1. 1. Current Status of Veterinary Medicine in Vietnam

The production of veterinary medicine in Vietnam has made significant progress. Currently, there are more than 12,501 registered veterinary medicine products, of which 80% meet domestic consumption needs. At the same time, 75 veterinary medicine manufacturing facilities meet Good Manufacturing Practice (GMP) standards, equivalent to 100% of the production facilities [1]. Additionally, Vietnam exports over 1,145 types of veterinary medicine to 40 countries, with an average annual export value exceeding 22 million USD [2]. These are essential advancements in meeting the demand and improving the quality of veterinary medicine production in Vietnam.

The veterinary medicine industry is one of the sectors with great potential for development in the Vietnamese economy. The veterinary medicine industry has several advantages for its development, including:

- Large consumer market: Vietnam is one of the countries with a thriving livestock sector, with over 25 million pigs, 500 million poultry, and millions of buffalo and cattle [3]. Additionally, pet ownership is rapidly increasing, with a total of over 7.5 million dogs and cats nationwide [4]. These are the primary consumer groups for the veterinary medicine industry.

- Abundant raw materials: Vietnam has various types of raw materials derived from plants and animals that have therapeutic effects on animals. Furthermore, Vietnam can produce bioactive substances and advanced biotechnology for the veterinary medicine industry.

- Incentive policies: The government has implemented many supportive and preferential policies for the veterinary medicine industry, facilitating access to loans, infrastructure investment, and technology for businesses. Additionally, the government is actively promoting quality control and safety of veterinary medicine, strengthening market inspections and supervision.

- Specialized workforce: Vietnam has reputable universities and research institutes in the field of veterinary medicine, producing thousands of veterinarians and biotechnology engineers annually. Moreover, Vietnam has numerous businesses operating in the manufacturing and trading of veterinary medicine, with experience and credibility in the market.

- Increasing livestock population: The number of livestock owners and livestock populations in Vietnam and neighboring countries are on the rise. The increase in various animal diseases and the demand for livestock products also contribute to the growth of the veterinary medicine market.

With these advantages, the veterinary medicine industry in Vietnam has strong potential for future development, contributing to animal health protection, improving livestock efficiency, and meeting consumer demand.

2. 2. Challenges and Causes

During the process of veterinary medicine production, there are several notable challenges that veterinary medicine manufacturers must face:

• - Quality management: Ensuring the quality of veterinary medicine products is a significant challenge. It is necessary to identify and comply with regulations regarding composition, active ingredient content, usage, and product storage. Additionally, it is essential to control the production process and implement quality inspection methods to ensure the consistency and effectiveness of the products.
• - Raw material and ingredient management: Veterinary medicine production requires the use of high-quality raw materials and ingredients. However, the control and management of the supply of raw materials have not been fully implemented. This can impact the quality and effectiveness of the final products. Strict management of raw materials and ingredients is a priority to ensure the stability and reliability of the production process.
• - Technology and equipment management: The use of modern technology and equipment is crucial in veterinary medicine production. However, not all manufacturing facilities have the ability to invest in advanced technology and equipment. The lack of suitable technology and equipment can reduce production efficiency and the ability to meet market demands.
• - Information management: Managing information related to the production and overall management process is another challenge. It is necessary to establish an effective information management system to collect, store, and retrieve information regarding the various stages of the production process. This helps improve the ability to monitor, control, and manage the overall veterinary medicine production process.
• - Human resource management: Ensuring an adequate and competent workforce during the veterinary medicine production process is essential. Training and developing employees with strong expertise, from research and development to production management and quality control, are necessary. Additionally, creating a favorable working environment to encourage employee creativity and contributions is important.
• - Production cost management: Veterinary medicine production faces challenges such as fluctuating raw material prices, labor cost increases, risk management, competition from cheaper products, and financial management. To overcome these challenges, it is necessary to apply optimization measures, enhance quality management, and adhere to processes, seek cost-saving methods, and improve efficiency to ensure competitiveness and profitability in veterinary medicine production.

Veterinary medicine production faces multiple challenges, from quality management to raw materials, technology and information management, human resources, and production costs. To overcome these challenges, it is crucial to enhance compliance with regulations, improve technological capabilities and equipment, as well as enhance information management and comprehensive monitoring throughout the production process.

3. 3. Solution for Veterinary Medicine Production Management with ERP-PharmaSoft Enterprise Resource Planning Software

To overcome these challenges, one effective solution is to implement ERP-PharmaSoft, an integrated enterprise resource planning software, for managing veterinary medicine production. ERP-PharmaSoft is a software system that integrates various functions of different departments within a business, including raw material procurement, quality control, accounting, inventory, sales, purchasing, production, human resources, and more. ERP-PharmaSoft provides businesses with a comprehensive view of their operations, optimizing workflows, improving efficiency, and enhancing competitiveness.

Some benefits of using ERP-PharmaSoft for veterinary medicine production management include:

• - Enhanced quality control and compliance with veterinary medicine standards: ERP-PharmaSoft allows tracking of the origin, batch numbers, and expiration dates of raw materials and finished products, as well as managing quality inspection activities.
• - Improved production efficiency and cost reduction: ERP-PharmaSoft enables production planning based on market demand, automates material and supply needs calculation, and provides monitoring of machinery and equipment status.
• - Increased sales volume and customer loyalty: ERP-PharmaSoft facilitates the management of customer information, orders, deliveries, and payments, as well as supports marketing activities and customer care.
• - Strengthened competitiveness: ERP-PharmaSoft helps businesses enhance their competitiveness by providing accurate and timely information on production status, finances, customers, and the market.

Therefore, ERP-PharmaSoft production management software is an effective and modern solution for veterinary medicine production. To successfully implement ERP software, businesses need to choose a reputable and professional software provider with experience and knowledge in the veterinary medicine industry. The provider should offer customization capabilities and software support tailored to each business's specific needs.

Entersoft Software Solution Joint Stock Company is one of the pioneering companies in developing and providing comprehensive enterprise resource planning software solutions in Vietnam. Entersoft focuses on developing high-quality and diverse software solutions, ranging from enterprise management applications to custom products based on individual customer needs.

With a philosophy of professionalism and a commitment to customer satisfaction, Entersoft prioritizes the interests of its customers. The company applies advanced software development methods and adheres to strict quality processes to ensure that the delivered products meet the highest standards. If you are looking for a reputable and professional ERP software provider for your business, please contact us for consultation and support.

References:

• 1. Vietnam Livestock Magazine, "Vietnam has 12,501 registered veterinary medicine products in circulation," June 17, 2020 (https://nhachannuoi.vn/viet-nam-co-12-501-san-pham-thuoc-thu-y-dang-ky-luu-hanh/)

• 2. Vietnam Livestock Magazine, "Vietnam's Veterinary Medicine Exported to 40 Countries, Earning 22 Million USD," December 23, 2020 (https://nhachannuoi.vn/thuoc-thu-y-cua-viet-nam-xuat-khau-den-40-nuoc-thu-ve-22-trieu-usd/)

• 3. General Statistics Office of Vietnam, "Statistical Yearbook 2022," page 648 (Statistical Yearbook 2022 - General Statistics Office of Vietnam)

• 4. Vietnam Livestock Magazine (2021), "There are 5 million households raising dogs and cats with 7.5 million pets nationwide," January 8, 2021 (https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2023/06/nien-giam-thong-ke-2022/)