Enhancing distribution channel management of truong giang cosmetic pharmaceutical and trade co , ltd

ề Đ án Ki nh tế ố qu INTRODUCTION CHAPTER 1: THEORETICAL BACKGROUND OF MANAGING DISTRIBUTION CHANNELS OF PHARMACEUTICAL ENTERPRISES 1.1 DISTRIBUTION CHANNEL OF PHARMACEUTICAL ENTERPRISES 1.1.1 DEFINITION OF DISTRIBUTION CHANNEL 1.1.2 ROLES OF DISTRIBUTION CHANNEL 10 1.1.3 FUNCTIONS OF DISTRIBUTION CHANNEL 11 1.1.4 FLOWS IN DISTRIBUTION CHANNEL 12 1.1.5 STRUCTURE OF DISTRIBUTION CHANNEL .13 1.1.6 MEMBERS OF DISTRIBUTION CHANNEL 15 1.2 MANAGEMENT OF DISTRIBUTION CHANNEL OF PHARMACEUTICAL ENTERPRISES 16 1.2.1DEFINITION OF MANAGEMENT OF DISTRIBUTION CHANNEL MANAGEMENT 16 1.2.2 OBJECTIVES AND CRITERIA TO EVALUATE MANAGMENT OF DISTRIBUTION CHANNEL MANAGMENT .18 1.2.3 ORGANIZATION CHART OF DISTRIBUTION CHANNEL MANAGEMENT 21 1.2.4 CONTENTS OF DISTRIBUTION CHANNEL 22 1.2.4.2 ESTABLISHING THE MANAGEMENT POLICY OF DISTRIBUTION CHANNEL 25 1.2.5 FACTORS IMPACTING ON MANAGMENT OF DISTRIBUTION CHANNEL MANAGMENT 29 CHAPTER 2: CURRENT MANAGEMENT OF DISTRIBUTION CHANNEL MANAGEMENT OF TRUONG GIANG COSMETIC PHARMACEUTICAL CO., LTD 2.1 INTRODUCTION OF TRUONG GIANG COSMETIC PHARMACEUTICAL CO., LTD .1 tế (làm lại Table of Contents) c TABLE OF CONTENTS ề Đ án Ki nh tế ố qu 2.1.2 BUSINESS LINES OF TRUONG GIANG COSMETIC PHARMACEUTICAL CO., LTD .3 2.1.3 ORGANIZATION CHART OF TRUONG GIANG COSMETIC PHARMACEUTICAL CO., LTD 2.1.4 BUSINESS RESULTS OF TRUONG GIANG COSMETIC PHARMACEUTICAL CO., LTD IN 2011 – 2014 2.3.2 EVALUATION DUE TO ??? MANAGING CONTENT OF DISTRIBUTION CHANNEL ( WHAT'S THIS SENTENCE MEAN?) 31 CHAPTER 3: RECOMMENDATIONS TO ENHANCE ON THE DEVELOPMENT OF MANAGEMENT OF DISTRIBUTION CHANNEL MANAGEMENT OF TRUONG GIANG COSMETIC PHARMACENTICAL AND TRADE CO., LTD 36 3.1 ORIENTATION OF ENHANCING MANAGEMENT OF DISTRIBUTION CHANNEL OF TRUONG GIANG COSMETIC PHARMACENTICAL AND TRADE CO., LTD BY 2020 36 3.1.2 ORIENTATION TO ENHANCE OF ENHANCING MANAGEMENT OF DISTRIBUTION CHANNEL MANAGEMENT OF TRUONG GIANG COMPANY BY 2020 .36 3.2 RECOMMENDATIONS TO ON THE DEVELOPMENT OF ENHANCE MANAGEMENT OF DISTRIBUTION CHANNEL MANAGEMENT OF TRUONG GIANG COSMETIC AND PHARMACEUTICAL CO., LTD 37 3.2.1 SOLUTION OF TO ENHANCING ORGANIZATION CHART OF DISTRIBUTION CHANNEL 37 LIST OF REFERENCES 58 INTRODUCTION CHAPTER 1: THEORETICAL BACKGROUND OF MANAGING DISTRIBUTION CHANNELS OF PHARMACEUTICAL ENTERPRISES 1.1 DISTRIBUTION CHANNEL OF PHARMACEUTICAL ENTERPRISES 1.1.1 Concept of distribution channel .7 tế GIANG COSTMETIC PHARMACEUTICAL CO., LTD c 2.1.1 HISTORY OF ESTABLISHMENT AND DEVELOPMENT OF TRUONG ề Đ án Ki nh tế ố qu c tế 1.1.2 Role of distribution channel 10 1.1.3 Functions of distribution channel 11 1.1.4 Flows in distribution channel .12 1.1.5 Structure of distribution channel 13 1.1.6 Members of distribution channel 15 1.2 MANAGEMENT OF DISTRIBUTION CHANNEL OF PHARMACEUTICAL ENTERPRISES 16 1.2.1 Concept of distribution channel management 16 1.2.2 Objective of distribution channel management 17 1.2.3 Criteria for evaluating the results of the distribution channel management 19 1.2.4 Structure of distribution channel 21 1.2.5 Designing the management policy in distribution channel 24 1.3 FACTORS IMPACT ON DISTRIBUTION CHANNEL MANAGEMENT 29 1.3.1 Macro environment factors 29 1.3.2 Industrial Factors 30 1.3.3 Company Factors 32 CHAPTER 2: CURRENT MANAGEMENT OF DISTRIBUTION CHANNEL OF TRUONG GIANG COSMETIC PHARMACEUTICAL CO., LTD 34 2.1 INTRODUCTION OF TRUONG GIANG COSMETIC PHARMACEUTICAL CO., LTD .34 2.1.1 Milestones 35 2.1.2 Product lines 36 2.1.3 Organization chart .36 2.1.4 Business results of Truong Giang Cosmetic Pharmaceutical Co., Ltd from 2011 to 2014 37 2.2 DISTRIBUTION CHANNEL STRUCTURE OF TRUONG GIANG PHARMACEUTICAL CO., LTD 41 2.2.1 The company distribution workforce 41 2.2.2 Structure of current distribution channels 42 2.2.3 Direct sale channel .44 2.2.4 Whole sales channel .46 2.2.5 Referent group channel 48 2.3 DISTRIBUTION CHANNELPOLICIES .50 2.3.1 Selecting members of distribution channels policies 50 ề Đ án Ki nh tế ố qu c tế 2.3.2 Incentive policies for distribution channel members 53 2.3.3 Regulating dispute amongst distribution channel policies 57 2.3.4 Evaluating members’ operation policies 61 2.4 EVALUATING THE MANAGEMENT OF PHARMACEUTICAL DISTRIBUTION CHANNEL OF TRUONG GIANG COMPANY 62 2.4.1 Evaluation by criteria 62 2.4.2 Strengths and weaknesses of distribution channels management 65 2.4.2.1 Strengths 65 2.4.2.2 Weakness 66 CHAPTER 3: RECOMMENDATIONS ON THE DEVELOPMENT OF DISTRIBUTION CHANNEL MANAGEMENT OF TRUONG GIANG COSMETIC PHARMACENTICAL AND TRADE CO., LTD 69 3.1 FORECAST OF PHARMACEUTICAL MARKET IN VIETNAM BY 2020 69 3.2 RECOMMENDATIONS ON THE DEVELOPMENT MANAGEMENT OF DISTRIBUTION CHANNEL OF TRUONG GIANG COSMETIC AND PHARMACEUTICAL CO., LTD 70 3.2.1 Implement training programs .70 3.2.2 Improving structure of distribution channel 72 3.2.3 Strengthening policies of managing distribution channel 74 3.2.4 Other solutions .81 3.3 SOME PROPOSALS TO THE AUTHORITIES 84 CONCLUSION 87 LIST OF REFERENCES 88 ề Đ án Ki nh tế ố qu Table 2.2 Qualification of staffs of distribution channel 42 Table 2.3 Revenue of Channel Type of Truong Giang Co., Ltd in 2012-2014 45 Table 2.4 Geographic distribution of intermediaries (up to 01/09/2015) 47 Table 2.5 Revenue of distribution channel type of Truong Giang Company in 2012-2014 .47 Table 2.6 Revenue of distribution channel type of Truong Giang Company in 2012-2014 .49 Table 2.7 The selection criteria of the channel member of Truong Giang Company 52 Table 2.8 Results of selecting distribution channel members in 2011-2014 53 Table 2.9 Policies of encouraging distribution channel member of Truong Giang Company .54 Table 2.10 Member’s evaluation to the policies of encouraging in Truong Giang Company in 2014 56 Table 2.11 Conflict in distribution channel of Truong Giang Company in 20112015 60 Table 2.12 Survey result on policies of solving distribution channel’s conflict of Truong Giang Company in 2014 61 Table 2.13 Market share of pharmaceutical products of Truong Giang Company in some major markets ( in terms of revenue) 62 Table 2.14 Market Coverage of Truong Giang in 2011-2014 .63 Table 2.15 Evaluating the satisfaction of members of distribution channel in Truong Giang Company in 2014 64 tế Table 2.1 Business results of Truong Giang Co., Ltd (Pharmaceutical) .39 c LIST OF TABLE ề Đ án Ki nh tế ố qu Figure 1.2 Benefit of Intermediaries 19 Figure 1.3 Process of evaluating activities of channel members 28 Figure 2.1 Organization chart .37 Figure 2.2 Growth of total drug consumption and average for pharmaceutical products in Vietnam 38 Figure 2.3 Business results of Truong Giang Co., Ltd (Pharmaceutical) 40 Figure 2.4 Organization chart of the distribution channel 41 Figure 2.5 Structure of pharmaceutical distribution channel of Truong Giang Co., Ltd 43 Figure 2.6 Revenue of channel type in 2012-2014 45 Figure 2.7 Revenue of channel type in 2012-2014 48 Figure 2.8 Revenue of channel type in 2012-2014 49 Figure 2.9 Selection procedure of distribution channel members in Truong Giang Company .50 Figure 2.10 Results of selecting distribution channel member in 2011-2014 .53 Figure 2.11 Member’s evaluation to policies of encouraging .56 Figure 2.12 Survey result on solving conflict in distribution channel 61 Figure 3.1 Proposed vertical link in pharmaceutical distribution of Truong Giang Company .72 Figure 3.2 System of internal applications 78 tế Figure 1.1 Structure of distribution channel 14 c LIST OF FIGURE ề Đ án Ki nh tế ố qu c INTRODUCTION tế Rationale of the research In business operation of each enterprise such as manufaturing and trade trading companies, the production distribution process is one of the most important steps to achieve their business goals In the period era of globalization associated with high competition, enterprises are now more focus on strengthening the capability of distribution channel management which creates differences in competition competitive advantages Pharmaceutical industry has many special characteristics which are different withfrom other sectors in managing distribution channel Globalization and economic integration influence every businesses, especially pharmaceutical enterprises, facicreating many opportunities as well as challenges Currently, Vietnam drug market is mainly supplied by two main sources including domestic and imported drugs In recent years, the pharmaceutical industry in Vietnam has made significant progress Domestic production could meets 50% of demand of drugs users However, the domestic pharmaceutical industry is still facing many challenges because foreign drugs account for 60% of the market share While The local firms are not able to produce the therapeutic class; mostly common drug categories are still used In the context of market expansion, Vietnam has implemented made great progress in order to open Pharmaceutical market as committed while joining World Trade Organization (WTO), there are more and more foreign medical enterprises entering the market According to the commitments of Vietnam to WTO, since 1st September 2009, foreign pharmaceutical companies are entitled to establish branches in Vietnam and are engaged directly to in importing drugs Therefore, foreign companies now have more chance to access medical market in Vietnam In the past, most of the enterprises with foreign direct investment (FDI) invested in medical factories However, there is about 70% to ề Đ án Ki nh tế ố qu manufacturing companies Truong Giang Cosmetic Pharmaceutical and Trade Co., Ltd is now specializing in distribution of pharmaceutical products, and cosmetics in Hanoi and some provinces /cities nearby (The company's operation is bearing highly competitive pressure from both domestic and foreign enterprises) In fact, the highly competitive pressure from both domestic and foreign enterprises has borne heavily on company’s operation In recent years, the operation of medical distribution channel of the company has been slowing down, the profit is not as expected Thus, company needs to improve the management of distribution channel in order to improve the effectiveness and efficiency of the business activities From the above analysis, along with the desire to contribute to the operational efficiency of pharmaceutical product distribution of the company, the author came up with the topic “Enhancing management of distribution channel management of Truong Giang Cosmetic Pharmaceutical and Trade Co., Ltd” for the study Literature Review There are many researches on distribution channel management including a number of typical papersresearch such as: - "Managing distribution channels" (Truong Dinh Chien, 2012) addressed in a systematic way the content of managing distribution channel from the viewpoint of manufacturing enterprises The thought and content of the book is consistent with Phillip Kotler’s approach about managing distribution channel Those approaches are considered as an important guideline for Vietnamese manufacturing companies to establish and manage the distribution channel - Scientific research at ministry level( xem lại từ này): "Assessment of the status and orientation of organizing distribution channels for some major items tế great pressure to strengthen the distribution channel of Vietnamese c 80% of FDI companies changed to pharmaceutical distribution field This is a ề Đ án Ki nh tế ố qu In the research, the author assessed general situation of major items in Vietnam as well as analyzed models of organizing distribution channel and management policy in order to recommend solutions which can remedy to the limitations - "The pharmaceutical distribution market in Vietnam"(E-commerce, 2012) noted that there are two main pharmaceutical distribution markets including wholesale and retail Most of products in wholesale market are imported by foreign distributors whose have good relationship with oversea manufacturers As commitments of Vietnam to WTO, foreign firms have the right to import directly medical products but they cannot enter the retail market in Vietnam;, thus, Vietnam companies can occupy exclusively in this market At present, the pharmaceutical retail market can be divided into segments: manufacturers operatinge distribution activities, pharmacy chains and private retail pharmacies - "The solution to perfect the system of distribution of pharmaceutical enterprises in Vietnam in the context of international economic integration" (Nguyen Thanh Tung, 2010) studied theories and circumstances of medical distribution system as well as the development of the channel in a number of drug firms in Vietnam Based on the study results, the author suggested resolutions in order to improve the efficiency of distribution system in the context of international economic integration The above researches, especially the micro perspective studies have contributed to enhance management progress the management of drug distribution channel Therefore, the topic of managing medical distribution channel is not a new issue;, however, there is not any study which has been done there are no studies which have been done Pharmaceutical and Trade Co., Ltd in Truong Giang Cosmetic tế known as Ministry of Industry and Trade), of Assoc.Prof.Dr Dinh Van Thanh c in our country up to 2015" Code: 2005-78-009 Ministry of Commerce (now ề Đ án Ki nh tế ố qu c Objectives of the research tế The main objective of this study is base d on to analyzinge theories and current status of distribution channel management in Truong Giang Cosmetic Pharmaceutical and Trade Co., Ltd to provide appropriate solutions which improve the company’s distribution system in the future To achieve the above objectives, the thesis identifies several specific tasks as follows: - Identify Formulate the theoretical framework on the management of distribution channels - Analyze circumstances of distribution channels of Truong Giang Cosmetic Pharmaceutical and Trade Co., Ltd; Illustrateidentify strengths and weaknesses and possible causes of the weaknesses in the management of distribution channel - Propose solutions in order to improve to the distribution channel management in Truong Giang Cosmetic Pharmaceutical and Trade Co., Ltd Scope of research - Research object: Distribution channel management of Truong Giang Cosmetic Pharmaceutical and Trade Co., Ltd - Research scope: + Content: Analyze management activities of the pharmaceutical distribution channel of Truong Giang Cosmetic Pharmaceutical and Trade Co., Ltd, the cosmetic distribution system is not included in this research + Location: Truong Giang Cosmetic Pharmaceutical and Trade Co., Ltd + Time period: Data is collected in the period of 2011-2014; and solutions to be proposed up to 2020 Research Questions To accomplish the goals, the following questions must be answered: - What are the role, structure and organization of distribution channels ề Đ án 93 Ki nh tế ố qu will work be fast, convenient and fit the era of industrialization, modernization To accomplish these tasks, the company needs to invest in training a team of employees, especially younger employees having a high level of computer and Internet to be able to help the company in the management and distribution system tế company needs to conduct more transactions online, or via mail so that it c call to order and purchase directly at the drug store So that the next time the ề Đ án 94 Ki nh tế ố qu products in the company's warehouses or stores must always be kept at a reasonable level, not too much to cause the freezing of capital and will not be below the minimum reserve which will cause scarcity The pharmaceutical products of the company must remain at a level that can provide immediately when customerscustomers need Regarding policy, the company should also have a promotional program with customerscustomers and ultimately consumers buying large quantities If client is intermediate company or retailer, Truong Giang company should support them by providing transport services, period payment or capital support to their business conduct c) Promotion flow IfWhile administrative tasks must be done by managers, the marketing mix (product, price, distribution and promotion) is the activity that influence everyone in the company Promotion activities have an important role over the activities of a distribution system Strengthening the promotion flow’s management in distribution channels is a support for the channel members in the formsterms of advertising, offers, promotions intermediaries, propaganda Involvement of proper attention will help channel members operate better Director who is the highest manager of distribution channel, has responsibility to make plan and approve budget for promotion strategies Thus, Truong Giang company needs to spend adequate funds for promotion activities for its members in the channel while ensuring the ability to allow and not affect the implementation of other activities d) Negotiation flow Demonstrating the interaction of buy and sell functions is related to product ownership For retail customerscustomers, purchase was simple at drug stores and pharmacies in the drug market or shop branch of their company tế Truong Giang company needs to be concerned that the pharmaceutical c b) Product flow ề Đ án 95 Ki nh tế ố qu implementing Most of the contracts are negotiated by sale department Contracts can be signed directly or by fax which is easier for long-distance clients Along with the development of information technology, consumers can order via internet but most of them still make order directly through phone Therefore, in the near future, Truong Giang company should innovate their website where people can get information about products and make order This tool will help company to catch up new consumption trend with online order so that they can save cost as well as serve customerscustomers better e) Order Flow To implement distribution activities, the company need to develop an optimal ordering progress This is the basis of business management for all flows working smoothly in distribution channel system Moreover, the company needs to build a website so that customerscustomers can make order online which is convenient for both customerscustomers and the company 3.2.4.2 Implementing marketing (phần nên bỏ) lồng ghép với phần thân distribution channels phận marketing a) Product strategy Truong Giang company distributes only imported pharmaceuticals so it is difficult to satisfy all customerconsumers’s needs Therefore, the company needs to strengthen sales activities in drug stores to obtain information about customerconsumers needs, agencies’ opinion to find out what type of products that should be provided in the market To achieve higher turnover, company should focus more on market research by increasing budget and human resources Sale staffSales staff is funded to visit tế the sales process must follow the standard procedure that many companies are c But customerscustomers buying in large quantities especially important orders, ề Đ án 96 Ki nh tế ố qu b) Price Strategy Truong Giang company should have reasonable policy for each member group For dealers and intermediary companies, price should be lower than selling price in drug store to ensure equality for all member so that they can sell medicine at the same price Setting price at drug stores is higher than wholesale price but lower than in other pharmacies to create competitive advantage and profitability for these stores For the hospital, depending on the types of drug so that company may apply different prices but must maintain the business relationship As exclusive distributor in some products, company should set the price that can help them to protect market advantage but not violate pricing law To the market that company has not yet reached, Truong Giang should provide not only discount price but also support transportation cost and setting equipment to attract potential clients For potential market area in highland areas, company should sell at price without transportation cost and provide supporting services in order to let civilian being familiar with company’s pharmaceutical products The company’s leaders need to regularly control the price of the agents, the intermediary company or the drug store closely to avoid dumping or raise prices and conflict in the affected channel the reputation of their company c) Promotion strategy Company should spend a portion of revenue on promotion activities This money will be invested in diversifying advertising channels and advertising forms in order to attract people attention Advertising programs targeting in dealers and intermediaries need to spread out in mass media to let more and more people know about company’s products Using flyers and catalogues is also another tool for Truong Giang company tế new product or innovating current product c agencies, intermediaries monthly to collect information needed for manufacturing ề Đ án 97 Ki nh tế ố qu even can get information about business strategy and direction of competitors To better in market research, the company also needs to set up a marketing department to coordinate with the business staff and conduct research to gather sufficient information and then advise the director of the company in the management of the market, distribution channel of pharmaceuticals better In the coming years, the company will also need to invest in building website for their units in order to facilitate the promotion and management of distribution system The construction of website offers great help for the promotion of online advertising which should be conducted more frequently, convenient for customerscustomers to find information on the network and simultaneously increase online transactions at the same time The company needs to strengthen incentives for members of their unit to conduct promotion activities, always put in mind of get people attention about to marketing activities which are required and are the responsibility of everyone in the company 3.3 SOME PROPOSALS TO THE AUTHORITIES Deeper economic integration, marked by the accession to the WTO in 2007, has provided Vietnam with numerous opportunities and challenges, including anincluding an increased vulnerability to external shocks This can be exemplified by the adverse impacts of the recent global recession on Vietnam’s economy, especially on pharmaceuticalon pharmaceutical business In terms of opening up the economy with the WTO accession opens up numerous opportunities but also challenges, based on the economic environment, which is in a state of recession fluctuations,and make it difficult for the pharmaceutical business - That Vietnam participated in the integration makes imported goods more carefully checked Imported goods are taxed higher resulting in drug prices’ rise tế to organize conferences, attend trade fairs to introduce products Sometimes, they c to introduce their products to customerscustomers Moreover, company also needs ề Đ án 98 Ki nh tế ố qu company Along with import laws, it is necessary to be more open to companies in the import of pharmaceuticals for distribution As Vietnam integrates into the global market, imported goods are subject to stricter examination Higher tax on imported goods resultgoods result in higher price of drugs p Therefore, the Government should adjustshould adjust the policies and regulations on drug price to create ? a stable legal environment for the operation of the company Along with import laws, it is necessary to be more open to companies in the import of pharmaceuticals for distribution (more policies should be implemented to support the distribution of imported pharmaceuticals products) - Government should have a more liberal regime in application of value added tax at the input and output for each type of pharmaceutical products to give businesses more favorable in the pharmaceutical distribution business - Currently the pharmaceutical business in smuggled from abroad are very popular resulting in mental confusion for consumers, so the Government must strengthen supervision and monitoring business’s activities of the pharmaceutical industry so that the menu businesses are favorable - Government should have a more “permissive value added tax regime on inputs and outputs of pharmaceutical products to give businesses more support in the pharmaceutical distribution business - Currently, pharmaceutical smuggling is very common, resulting in consumer confusion Therefore, the Government must impose stronger supervision on pharmaceutical industry so that businesses are favorable (are benefited) The international economic integration raises foreign investment and the number of firms with large foreign investment Therefore, the Government should have policies to apply different tax rates for businesses with foreign investment and to protect domestic businesses - As many businesses arbitrarily increase drug prices, the Government tế and regulations on drug prices to stable legal environment for the operation of the c Therefore, the Government should support the promulgation and adjust the policies ề Đ án 99 Ki nh tế ố qu pharmaceutical companies - The international economic integration makes foreign investment increase; the number of firms with large foreign investment increases also Therefore, the Government should have policies to apply different tax rates for businesses with foreign investment and policies to protect the business operations for the unit in their country - That many businesses arbitrarily increase drug prices, the Governmentshould regularly inspect and strictly handle illegally pharmaceutical business establishments and medicine manufacturing base to create stabilize drug prices, create an environment of healthy and fair business amongst pharmaceutical companies - The Ministry of Health is in charge of directly regulating the pharmaceutical companies in general The Ministry of Health should establish a legal environment for the pharmaceutical business by continuing to build tobuild to effectively implement pharmaceutical law The Ministry should study (research?) to issue the legal documents related to the pharmaceutical distribution operations operations - The Ministry should consider the large distribution companies act as authorized dealers or direct manufacturers and foreign enterprises in Vietnam like some foreign distribution companies currently being present in the market The Ministry of Health is the subject directly regulating the activities of companies producing pharmaceuticals in general The Ministry of Health should establish a legal environment for the pharmaceutical business as continuing to build the bylaws to implement effective pharmaceutical law The Ministry should study to issue the legal documents related to the pharmaceutical distribution operations in tế manufacturers to ensure stable drug prices, create a fair business environment for c should regularly inspect and strictly handle illegal pharmaceutical businesses e and ề Đ án 100 Ki nh tế ố qu c tế the market - The Ministry should consider the large distribution companies act as authorized dealers or direct manufacturers and foreign enterprises in Vietnam like some foreign distribution companies currently being present Vietnam in the market - Planning and modernizing drug delivery systems including import and export, wholesale and retail Developing Retail network ,network, especially in the remote, mountainous and island regions - Consolidating and strengthening the system of state management agencies in pharmacy: consolidating the Vietnam Drug Administration; reorganizing and strengthening specialized Pharmaceutical Inspectorate; enhancing organization of the Pharmaceutical Management Department of Health Services; planning the drug production system - Ministry of Health are interested in increasing investment, finishing facilities and warehouses, and providing trainingproviding training to improve staff qualifications in pharmaceutical management, (applying) technology of good distribution to meet standards of GSP - Planning and modernization of drug delivery systems include import and export, wholesale and retail Retail network development, focused on the remote, mountainous and island - Consolidating and strengthening the system of state management agencies in pharmacy: consolidating the Vietnam Drug Administration; reorganization and strengthening of specialized Pharmaceutical Inspectorate; enhancing organization of the Pharmaceutical Management Department of Health Services; planning the drug production system - Ministry of Health are interested in directing the increased investment and finishing facilities and warehouses as well as training to improve staff qualifications in pharmaceutical management, technologyof good distribution due to standard of GSP Facilitating and encouraging the establishment of modernof modern testing ề Đ án 101 Ki nh tế ố qu c tế service outside of the state testing system ề Đ án 102 Ki nh tế ố qu c tế CONCLUSION Distribution system consists of a set of participants, (ranging) from manufacturersfrom manufacturers to the intermediaries, from organizations to end users , (who )participate in the process of providing goods to meet market demand Each member has specifichas specific function and distribution task and is interdependent The research and analysis of the issues of pharmaceutical distribution (with respect to) pharmaceutical enterprises show that the organization, design and management of distribution system are essential and require both (theoretical) and practical analysis in order, to provide basis for actual operations in a competitive environment The theoretical problem mentioned is the basic problem for evaluating and understanding the actual situation of enterprises, especially the operation of the system of pharmaceutical distribution Completing aCompleting a distribution system for pharmaceuticalsfor pharmaceuticals businesses in the context of international economic integration is essential and urgent The objective of this work is to improve the business’s efficiency in production asproduction as well as competitiveness in the market Through research, the author completed the following tasks: Thesis systemized the theoretical issues related to topics such as: Distribution; Management of pharmaceutical distribution channels of the pharmaceutical business The thesis has analyzed the status of managing distribution channels of Truong Giang Cosmetic and pharmaceutical Co., Ltd in 2011-2014 used the assessments of these companies to point out the strengths, weaknesses and possible causes of weaknesses in the management of the distribution channel Thesis proposed 04 solutions and a number of recommendations for improvingfor improving management of distribution channels of Truong Giang ề Đ án 103 Ki nh tế ố qu c tế Cosmetic and pharmaceutical Co., Ltd towards 2020 ề Đ án 104 Ki nh tế ố qu tế service outside the state testing system c - Facilitate and encourage the establishment of the base of modern testing ề Đ án 105 Ki nh tế ố qu c tế CONCLUSION Distribution system consists of a set of participants from the manufacturers to the intermediaries, from organizations to end users participating in the process of providing goods to satisfy market demand Each member has the function, specific distribution task and interdependence Based on research and analysis of issues of pharmaceutical distribution of pharmaceutical enterprises, it can be seen that the organization, design and management of distribution system of pharmaceutical enterprises is essential and needs to be analyzed, studied theoretically as well as practical to provide the basis for the actual operations in a competitive environment The theoretical problem mentioned is the basic problem for evaluating, understanding the actual situation of enterprises and especially the operation of the system of pharmaceutical distribution Completing the distribution system of the pharmaceuticals business in the context of international economic integration is essential and urgent The objective of this work is to improve the efficiency of production and business as well as competitiveness of businesses in the market In the immediate future, pharmaceutical companies need to create favorable conditions for the personnel, equipment, training and management skills to build a distribution system, whichoperates efficiently Through research, the author completed the following tasks: Thesis systemized the theoretical issues related to topics such as: Distribution; Management of pharmaceutical distribution channel of the pharmaceutical business The thesis has analyzed the status of managing distribution channels of Truong Giang Cosmetic and pharmaceutical Co., Ltd in 2011-2014 Since then, raised the assessment of the above situation, pointing out the strengths, weaknesses ề Đ án 106 Ki nh tế ố qu to improve management of distribution channels of Truong Giang Cosmetic and pharmaceutical Co., Ltd towards 2020 tế Thesis proposed 04 solutions and a number of recommendations in order c and possible causes of weaknesses in the management of the distribution channel ề Đ án 107 Ki nh tế ố qu Management, Publisher of National Economics University - Hanoi Assoc Prof Dr Trương Đình Chiến 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