iv INTERNSHIP REPORT on Integrated Strategy of B.Braun Vietnam Co., Ltd to develop market share for Hemodialysis machine in Vietnam UNIVERSITECOTE D’AZUR Institut d’Administration
Company Overview
B.Braun Vietnam Company background
Table 1 Illustration of company’s background information Name of the company B.Braun Vietnam company limited ( B.Braun Vietnam Co.,Ltd)
May, 28 th 1998, Operation start date May 28 th , 1997
Licensed by Department of Planning and Investment of Hanoi - Business Registration
Foreign party capital 100% FDI capital from B.Braun Medical Industries SDN BHD
(Malaysia) - This is a subsidiary of B.Braun Germany in Asia Pacific region
- Manufacture of drugs and pharmaceutical products
- Manufacture of medical, dental, orthopedic and rehabilitation equipment and devices
- Retail sale of drugs, medical equipment, cosmetics and hygiene products in specialized stores
- Rental of machinery, equipment and other tangible goods without operator
- Remaining other business support services
Thanh Oai Industrial complex, Bich Hoa commune, Thanh Oai district, Hanoi
Email info_bpvn@bbraun.com
Besides the Headquarter in Ha Noi: Thanh Oai industrial complex – Bich Hoa commune – Ha Noi capital The company has two representative offices:
1 In Ho Chi Minh: Vinamilk tower – No 10 Tan Trao – 7ward – Tan Phu district – HCM city
2 In Hanoi: 170 La Thanh street, Dong Da district – Ha Noi capital Factories Two factories:
1 170 La Thanh street, Dong Da district – Ha Noi capital
2 Thanh Oai industrial complex – Bich Hoa commune – Ha Noi capital
The company has two factories: one located at 170 La Thanh specializing in the production of hemodialysis solutions for hemodialysis machines, and sterile intravenous solutions The other is located at Thanh Oai Industrial Complex, specializing in manufacturing IV system for infusion, bloodline set for hemodialysis used for local distribution and export to European markets
Figure 1 Main manufacture based in Thanh Oai industrial complex
To increase capacity, the company also outsources hemodialysis solution products which meet the quality standards of the owner in Germany, at Haiphaco factory - in Hai Phong, to meet adequately and promptly demands of Vietnam market
The company imports high-tech equipment and machinery such as Hemodialysis machine, Acute Blood Purification machines (ABP machine) and consumables for those devices, products used in surgery, cardiovascular intervention and electric syringe pump and so on
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Company history
B.Braun Vietnam Company (BBVN) is a subsidiary of B.Braun Melsungen AG,
Germany - one of the world's largest pharmaceutical and medical device companies has been present in Vietnam for nearly 30 years since 1992 with two offices representative in Ho Chi Minh City and Hanoi
Figure 2 Milestones in the development history of B.Braun Vietnam
In 1996, BBVN entered into a joint venture with Hanoi Pharmaceutical Enterprise at
170 La Thanh, Dong Da, Hanoi, taking the name B Braun Hanoi Pharmaceutical
In 1997, BBVN's infusion factory came into operation Two years later, it was expanded and received the first GMP Certificate for the infusion factory in Vietnam
In 2004, with a total investment of more than 100 million USD from the parent company
B Braun Medical Industries SDN BHD Malaysia belongs to B Braun Group of
Germany, BBVN became a 100% foreign invested enterprise
In 2008, with an investment of about 32.6 million Euro, the first medical equipment factory of B Braun Vietnam was started at Thanh Oai Industrial Complex, Hanoi
In 2011, this factory was officially inaugurated with the attendance of German
Chancellor Angela Merkel, Vietnamese Minister of Health Nguyen Thi Kim Tien and
Chairman of the Board B Braun Melsungen AG With a factory construction area of up to 99,994 m2, BBVN has become the largest medical equipment factory in Vietnam
In 2020, B Braun Vietnam was proud to be one of the top five Winners of HR Asia Best Companies to Work for in Asia, recognized in Top 100 sustainable businesses, honored in Hanoi’s Top 10 Key Industrial Products 2020 with 2 registered products are Intrafix Primeline & HD – Plus With these recognitions, B Braun Vietnam has demonstrated its positive contribution to the local business environment as a sustainable business in manufacturing and exporting
As of 2021, BBVN has about 1,400 employees working at factories and representative offices across the country.
Company’s products
B.Braun Melsugen and B.Braun Vietnam currently have the same product portfolio which is divided into 4 product groups as below:
This product group included products and services for all key surgical procedures as below:
1.3.2 The Hospital Care (HC) Products
Healthcare (HC) offers a comprehensive suite of medical equipment, including electrically powered devices like infusion devices and automatic hand washing machines For intravenous (IV) therapies, HC provides peripheral catheters and clinical nutrition solutions for hemodialysis and intensive care unit (ICU) patients, along with drug delivery systems Additionally, the company offers assistive devices for wound care management, such as urological and wound drainage and measurement systems.
1.3.3 The OPM (Out Patient Market) products
This division provides healthcare products for various patient needs It caters to outpatients and those with chronic conditions requiring extended care The product portfolio includes solutions for enteral and parenteral nutrition therapy, tracheal care under the Transcare brand, and supplies for wound care and hygiene These products aim to support patients' well-being and recovery in both outpatient and long-term care settings.
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BBA in Vietnam is offering two main extracorporeal blood treatment product groups used in intermittent dialysis and acute blood purification including: Hemodialysis machine (HD machine), Acute Blood Purification (ABP) It also distributes consumables & dialysis concentrate which are used for HD machine and ABP machine
Clients
B.Braun's general customers are domestic distributors of medical equipment, hospitals and medical centers, pharmacies (OPM products), medical equipment stores Especially for the product group of B.Braun Avitum, Aesculap and HC, although the end user is the patient, they are not the direct purchaser of the product
Products are provided to hospitals and medical centers through direct procurement according to the needs of private hospitals, in the form of tenders for projects of the Ministry of Health or the Department of Health for public hospitals.
Basic financial data
Table 2 Company’s financial statement from the years 2018 to 2020 Currency: VNĐ, in which $1#.320 VND
The company's revenue exhibited consistent growth from 2017 to 2019, notably increasing by 15% from 2017 to 2018 However, revenue growth slowed in 2019, with a mere 5% increase compared to 2018 In contrast, profit after tax declined by approximately 7 billion VND in 2019 while expenses remained relatively stable, indicating a potential strain on profitability margins.
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Figure 5 The fluctuation of important financial figures of B.Braun Vietnam’s from 2017 to
2020 Looking at this chart, it is obvious that compared to 2019, B.Braun Vietnam's profit after tax and revenue of 2020 have decreased, the decrease is about 6% and 2% respectively
The profit-to-sales ratio of the business = Profit after tax / sales = 10% in 2019 and 9,9% in
2020 This ratio of 2020 is slightly lower than that of 2019
The ROA indicator shows the effectiveness of the process of organizing and managing production and business activities of an enterprise As the above calculation in 2019, the ROA results show that on average, for every VNĐ of assets used in the production and business process, a profit of 0.91 VNĐ was be generated, while in 2020, an average of 1 VNĐ of assets generated 0.88 VNĐ profit Thus, the efficiency in using assets to generate profits of B.Braun Vietnam in 2020 is lower than in 2019
The main reason for the decrease in revenue and profit of 2020 is that the increase in the price of input materials, affected logistics activities leading to production slowdown and increase in cost of sales as well as general management cost
Year Net Sales (billion) Total expenses (billion) Net Profit after tax (billion)
Company Structure and Organization Chart
The company structure
The organizational structure of B.Braun Vietnam Company is shown in the following organizational chart:
Figure 6 B.Braun Vietnam organizing structure
Explanation of the organization Structure
The General Director of B.Braun Việt Nam is a person appointed by B.Braun Melsungen AG for a minimum term of 3 years/time He is the highest authority of B.Braun Vietnam Co., Ltd who manages and supervises all business activities, human resources as well as cooperative activities of the enterprise
The main responsibilities and obligations of the General Director are shown as follows:
Being the legal representative of the company with responsibility and obligation for the general management of all activities of the company from business activities to management of activities related to finance and human resources
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Being the final decision maker on the appraisal, approval, and investment decision for the company's domestic and foreign projects including sales and marketing projects
Being the final approver of financial policy issues with the support of the finance and accounting department
Being a diplomatic representative person who on behalf of the company working with government organizations and press agencies
The Human Resources (HR) Department of B.Braun Vietnam is divided into many sub- departments with specific objectives This department plays an important role in assisting the company in accomplishing its strategic goals The main responsibilities of HR department are:
Recruiting suitable candidates for company
Implementing the process of calculating and paying salaries for the company's employees
Preparing policies related to human resource management
The legal department of B.Braun Vietnam has the following roles:
Consulting and supporting the company's leaders in applying the law to be able to do business in the most convenient and effective way
Directly drafting and developing internal documents and regulations
Participating in commenting, evaluating from a legal perspective the documents
Supporting business leaders to perform tasks such as: negotiating, negotiating important contracts of the company with business partners, appraising draft agreements, cooperation contracts, the investment project to ensure that it is not contrary to the law, the charter or has loopholes, legal errors that may lead to damage to the company
Complementing risk assessment of investment and business environment for abroad investment projects of the company
Participating in legal proceedings or advising as an authorized representative of the General Director to protect the legitimate rights and interests of the company
The financial management department is responsible for researching and analyzing financial plans, thereby ensuring the effective use of capital as well as preventing future risks for the company
It has an important role in ensuring the most efficient cash management as well as sufficient cash to meet all financial obligations and business activities of the company Under this department, there are the following sub- departments:
Finance & controlling division with 20 employees
The department that supports the realization of the company's long-term business goals through the control and determination of financial policies
It also supports management decision-making through accurate and timely financial-related reports that comply with applicable internal and external standards Other important tasks of this department are to effectively check, control and monitor the company's financial resources and liquidity, and to develop and implement strategies to prevent financial risks for the company
Supply Chain Management ( SCM ) division with 25 employees
B.Braun Vietnam's SCM department manages crucial functions such as import and export, warehouse coordination, and transportation to ensure smooth, compliant, and cost-effective operations Their expertise in route optimization and transportation enables the company to minimize costs and maintain seamless supply chain processes.
To do this, the SCM department needs to understand the practices, policies, regulations and laws related to the supply chain
Sales and marketing department of B.Braun is the one in charge of product sales goals, proposing sales project, advertising products, surveying the market to find out potential customer areas
Under this department are four divisions included: Aesculap, BBA, HC and OPM The leader of each division is Division Head who takes responsibility for the implementation of marketing activities and sales in domestic and oversea markets, finding potential customers and making them become company’s partners in order to achieve sales targets Each division will provide different products to the market as shown below:
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Table 3 Business division structure of B.Braun Vietnam and corresponding products
Out Patient Market Portfolio (OPM)
In this department, sales are the persons who directly meets, advises on products and takes care of customers to achieve sales goals
Marketers are the assistants to the Division head, helping him/ her to plan strategies to maintain and develop market share, do market research for new products, update market situation and competitors Marketers are also in charge of internal product training staffs of the division to ensure that they understand the products In addition, designing the product identity, supporting the registration department, working closely with the marketing department of B.Braun Asia Pacific and B.Braun Melsungen AG to update and implement product development strategies are also the tasks of marketing team An indispensable task of the marketing team is to organize conferences and seminars for customers
The department supports the Marketing team in the company to implement internal training programs, domestic seminars in the form of offline or online The AA department grasps very well the policies and laws of pharmacy to be able to implement programs in accordance with the SOP of the industry
Under operation department are following divisions:
Manufacturing departments spearhead the optimization of productivity, quality, and efficiency in production and business operations These departments prioritize technological investments and advanced manufacturing techniques to augment production capacity and align with evolving market demands By leveraging technology, they strive to enhance efficiency, reduce costs, and maintain a competitive edge in the marketplace.
B.Braun Vietnam has two manufacturing sites One is a medical equipment factory producing blood lines for hemodialysis, IV sets for domestic consumption and export The other is a factory that manufactures products classified as pharmaceuticals including IV infusion solutions, dialysis solutions to supply the domestic market
Beside sales and marketing team, workshop is the support department of BBA and HC division in installation, repair, maintenance and user manual for hemodialysis machine, CRRT machine and syringe pump when needed In BBA's workshop, there were 16 experienced engineers who graduated from prestigious technical universities and were sent to be trained at B.Braun Melsungen's headquarters The HC team has 4 engineers who are also in charge of sales consulting Besides, WS are in charge of selling spare part and service contract to customers
The QM division is responsible for:
Ensuring production quality of Thanh Oai and La Thanh factory
Inspecting and controlling the quality of raw materials used in production and output products before they are released to the market
Supervising and instructing departments to follow the correct technological process, ensuring production according to GMP, ISO 9001, EC quality standards…
Monitoring the maintenance and improvement of the quality system
Inspecting and reporting product complaints against imported products to manufacturers in order to improve product quality
Environment, Health and Safety (EHS) division
The primary responsibilities of this division is to ensure good environment, health and safety for all staffs of the company through:
Regularly inspecting the facilities and the internal environment to ensure that employees have the safest working environment
Managing permits and reports on Environmental Impact Assessment, Exhaust Permit, Workplace Safety Regulations, Work accident reporting, Work environment measurement, Chemical Safety Precautionary Response…
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Planning for internal inspection, assessment, training, cost budgeting Safety – Environment
Proposing ideas to improve the management system to the company's management board
This department is in charge of the work related to building the network system, protecting the company's data network In addition, it also undertakes to advise and organize, implement and manage the entire information technology (IT) system of the company to maximize the working efficiency for employees; including: Network system management, IT application system for research activities, IT knowledge training for new employees
The main functions of this department are:
Implementing of registration procedures for getting circulation permits, import procedures for products required for domestic sales purposes
Ensuring accurate product dossiers and compliance with Ministry of health requirements throughout the product life cycle from launch until the product has been placed on the market
Planning, conducting and tracking drug registration progress to obtain the marketing authorization (MA) for company's drug Take action to have extension, change to ensure continuation of MA
Analyzing and updating current guidelines and regulations to ensure compliance of the company Provide general advice on drug registration strategies
Managing and perfecting the operating model of RA department
Review and check the quality of registration documents.
The intern‘s Position
BBA is one of the four divisions of sales and marketing department in Vietnam, which is divided into 2 strategy business units: Hemodialysis (HD) and Acute Blood Purification (ABP) as mentioned in chapter 1 I was so lucky to be accepted to be the marketing intern of SBU-HD of this division
As a new comer entering the pharmaceutical marketing field with very strict and specific policies, worked with complicated and difficult products, I could not avoid being surprised at first But I gradually adapted well to the position under the guidance and dedicated supervision of my Division Head, Mr Nguyen Dai Thanh
Mr Thanh has more than 20 years of experience working in the market, as well as experience in managing the BBA Division He understands the products, market, competitors very well and has extremely good management ability
But he is also a very friendly, cooperative and pleasant person At work, he is fierce and strict but dynamic, intelligent and wise to achieve the company's goals I myself have seized the opportunity to work with people with expertise and gain practical experience during this short internship Additionally, I have contributed the knowledge gained from the AMI course and my personal experience to the company through an integrated strategy to maintain and expand the market for HD machine in Vietnam market In the context of the Covid-19 epidemic is difficult to control, competitors are aggressively encroaching on the market, leading the slower growth of the Division than years before
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Assigned tasks and goals asked to be reached
Tasks and responsibilities assigned to the intern position
As mentioned in the previous chapter, B.Braun Avitum Division is one of the four divisions of B.Braun Vietnam, which specializes in supplying the market with high-tech products related to hemodialysis and Acute, as well as accessories to operate these systems
As a marketing intern for the Hemodialysis Strategic Business Unit (SBU-HD), I conducted market research and competitor analysis to support the expansion strategy for Dialog+ dialysis machines My focus was to identify market share data for competitors and Dialog+ and explore potential markets for product development This information was crucial for developing strategies to introduce and penetrate new markets, ensuring the success of Dialog+ in the expanding hemodialysis industry.
As described in chapter 2, in SBU-HD, the Dialog+ machine is its central product which has been accounted for the largest sales and a very proud product of B.Braun in terms of technology as well as market share since its was born
The following is my work schedule, where each assigned task has accompanying goals set by the supervisor in my company:
Get to know the company culture and learn about the relevant departments in finance, logistics, compliance, customer support (CSR), sales
Have great overview of the company culture to have appropriate behaviors and working methods
Understand the functions of each department, and who you will contact directly in each job to avoid contacting the wrong person, or being confused about who to work with when a job arises
Trained and self- taught about B.Braun Avitum's products in general and SBU - HD's products in particular
Study about the main competitors in the market, the differences in B.Braun Avitum's products and those of competitors
Understand the intended use of these products, have a relative knowledge of the pathology associated with hemodialysis and the complications of hemodialysis, as well as understand insurant for HD patients in Vietnam to deliver proper Marketing strategies
Get key information about competitors: strengths and weaknesses in their products, their market strategies
Learn about SBU- HD’s business models Study the current projects of developing business expansion of the Division
Understand the business models of SBU
Grasp strategies the division is implementing to maintain the market as well as the direction to expand the market for the product in the future
Understand the purpose of projects, potential of new market
Find out the product development orientations of competitors to have appropriate response measures
7 th to 9 th week Market research
Collect relate information which are accurate and up to - Analysis all collected data
Well grasp about the product with its advantages and disadvantages
Take in the strengths and weaknesses of the company and business environment factors
Research, collect information and thoroughly analyze factors inside and outside the company that affect the project to propose ideas for expanding the market for Dialog+
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The linkage between missions and the subject matter
With the task of market research to find potential markets, I believe that understanding company culture, company resources, products that SBU is doing business and competitors is the foundation for implementation From the intern's schedule above, it is obvious that the activities that I perform in each periods are closely related to my main job assignment
To have the work completed, I must firstly understand my company well and from there have appropriate ways to behave and work to achieve the highest efficiency, save time, and avoid contacting the wrong person in the process of job execution
Additionally, in order to do market research of Dialog+ machine, I must have a good understanding of the device as well as grasp the trends of our competitors This is an essential step to have an overview of the hemodialysis device industry and the market for Dialog+ It is also the basis for analysis to find potential customers and business opportunities Although the number of products in the catalog of B.Braun Avitum in general and SBU-HD in particular is not too many, they are complicated since they are high-tech machines In order to understand the intended use of these products, I must have a relative knowledge of the pathology associated with hemodialysis and the complications of hemodialysis, as well as I need to understand insurant for HD patients in Vietnam to deliver proper Marketing strategies
Although I have a background in pharmacy and pathology thanks to some years studied in Hanoi College of Medicine and Pharmacy, and have a number of years working in the field of medical equipment, for me, in order to grasp great above knowledge in a short period of time was not simple Moreover, the business model of the Avitum Division is very complex including:
Offering products to local distributors
Leasing equipment to hospitals as an asset, and collect money according to the number of hemodialysis treatments that the hospital performs monthly
Offering products according to projects
Associating with the hospital to open a high-quality hemodialysis center, in which, B.Braun Avitum is the supplier of medical equipment as well as training for hospital staff on how to operate equipment properly and participate in routine maintenance of equipment to ensure patient safety The hospital - where B.Braun Avitum cooperates will be the unit that performs treatment directly for patients In terms of Marketing,
B.Braun and the hospital will work together to come up with appropriate marketing strategies to attract patients
For an ordinary person, to grasp all the above knowledge is a big challenge Fortunately, thanks to the knowledge that I have learned during my participation in the AMI course helped me to have the necessary and important knowledge to approach the problem effectively in a short period of time
By taking step by step, I soon acquired the basic knowledge and skills in order to assist the SBU-HD team and Division Head in implementing market research and contribute some ideas to help them develop a strategy to maintain and expand the business for Dialog+ machines in the Vietnamese market.
The goals to be asked to achieve
In order to achieve the goals of the internship, I have worked hard from the very beginning, with the enthusiastic and thoughtful support from my colleagues and superiors The goals that
I need to achieve during my internship are listed below:
Understand the company culture and basic policies that I need to follow as well as how to communicate with departments appropriately
Have good relationships with the departments I need to work with in my assigned missions and find effective resources to support my missions
Adapt to the new working environment
Understand of SBU-HD products as well as key competitor products
Gain basic understanding of SBU-HD's business model
Have feasible ideas about doing market research
Conduct market research and propose potential markets and have useful ideas to contribute to the strategy of maintaining and developing the dialysis machine market in Vietnam.
Positive contributions could bring to BBVN
When applying to the company, I had certain confusions because the medical equipment related to dialysis is very complicated The collection of information and data in the hospital environment is not simple With the support of my superiors, colleagues, and the knowledge learned from AMI courses, the followings are things I could contribute to the company:
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• I could collect data on the current number and operation status of dialysis machine in hospitals throughout Vietnam included Dialog+ and other brands Thereby helping the company:
Get the reliable market data of hemodialysis machines
Get an overview of the business environment of this device
Understand the true potential of the product and have an orientation to expand market share in empty markets, and markets where competitors are active but tend to be weak
• In addition, I also could contribute some ideas to the marketing strategy of SBU-HD to help:
Deepen into the customer's mind the strengths of Dialog+
Support in organizing events, scientific seminars to promote product images
Build a feasible market expansion strategy
Thanks to the knowledge taught in the AMI course, I was able to apply them effectively and come up with ideas related to market analysis to help the Division head of BBA and superiors have an overview on micro and macro factors, from that have an appropriate strategy.
The application of theoretical knowledge into practice
As mentioned above, I graduated from Hanoi College of Medicine and Pharmacy, and a university of economics in Vietnam, and with a number of years working in the field of medical equipment, it has greatly facilitated me I am also interested in business development for medical equipment in Vietnam Especially after the AMI course, with a lot of useful knowledge equipped, I realized that I can do many things with much higher efficiency, specifically:
This is a very useful and practical subject that provides various techniques, models and tools in building professional and comprehensive strategy with PESTL and SWOT analysis
Those tools help me analyze the external and internal factors that can affect the business so that I can have the right orientation for the projects in which I have the opportunity to participate in
This is a very interesting subject and especially meaningful to me when I was intern at a multinational company where I had the opportunities to interact with many different cultures
The course provides me with knowledge on how to identify, evaluate, and resolve potential International and Intercultural and communication problems
Working in a multinational company, it is very common to interact with colleagues and customers from different countries and cultures Cultural understanding allows me to better understand our partners, earn their trust, and avoid mistakes that could harm our partnership The course introduces us to the cultural characteristics of people from many parts of the world such as Germany, USA, China, Korea, Thailand, and Middle East… Thanks to that, I can carry out negotiations with foreign partners effectively by knowing their lives and ways of thinking as well as the factors affecting their decision making
The subject helps us to know the wide range of customers from different geographical or cultural
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22 backgrounds and the ways companies should beneficially apply marketing strategies to reach them In the current globalization context, cultural understanding and appropriate behavior with foreign partners play a decisive role in successful negotiations and communication in business
As a Marketing intern, I have many opportunities to work via email and phone as well as meet online with colleagues from Malaysia, Germany The subject helps me to have a suitable way of working with people from different countries
Being equipped with knowledge of SCM is effective in my work It helps me understand the supply chain of goods in the company In my internship, this subject has helped me to set up the right supply chain to promptly meet the needs of customers, but still reduce storage and transportation costs
As an internship related to Sales & Marketing, the knowledge gained from this course is very important to me, it has taught me about all kinds of wholesale, retail, distribution and distribution channels e-commerce so that I can use it in my expansion strategy for Dialog+ I have used the knowledge from this course to help Division leadership select distribution channels and promote our products selectively and effectively
Besides, we also cooperate with the SCM department to choose a suitable and productive distribution channel for our business strategies
The knowledge gained from this subject has helped me to know different payment methods for international transactions/trade such as L/C, open account We have many imported products from America, Germany…,
23 knowing about payment methods is very helpful for us to avoid risks in international payment
For me, this subject is very important and effective in helping me understand the factors that affect business performance Too much investment in marketing but not well prepared quantity of goods will also make that marketing strategy waste and fail Through the course, I understand that business and investment decisions need to be carefully considered in each stage of the product, with a plan to prepare facilities and human resources for production in order to improve business result
As a company operating in the field of import and export of medical equipment, B.Braun also faces many difficulties in a fickle market, especially credit risk which can cause profits and revenues losses of the company This course helps a lot in coming up with effective financial hedging strategies
Currently, in Vietnam, intellectual protection of products has not been paid attention That is why Vietnam is a fertile market for counterfeit goods to circulate We also encountered falsification of the hemodialysis concentrate formulation This is a sad consequence of not having registered the product's intellectual property rights from the very beginning of production to help protect this product from infringement In addition, Using IPR helps to generate more competitive advantage when promoting products in the market
Incoterms, a set of globally recognized trade rules, provide essential guidance for navigating international transactions They meticulously outline pricing structures, responsibilities, and obligations of all parties involved in the exchange of goods By understanding Incoterms, businesses can ensure clarity and minimize potential disputes, fostering smooth and efficient international trade.
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(sellers and buyers) in the import and export of goods in a worldwide commercial activity The topic also helped me understand when to use FOB, CIF, EXW terms to import and export goods to ensure the company's business interests
This course is especially useful to me when working in a multinational company My company has my boss and many colleagues from Germany, India and Malaysia The course helps me to behave properly with my colleagues and helps the work to proceed smoothly
DEVELOPMENT
PESTEL analysis
The success of a project will be influenced by many factors, especially those related to the internal and external environment of the business In this part, I would like to apply PESTEL in analyzing factors including: P (Political) factors, L (legal) factor; E (Economics) and (Environment) factor; S (Social) factor; T (Technical), to evaluate their effects on BBVN's business strategy for expanding market for product - Dialog+
In general, the peaceful and stable economic and political situation of Vietnam is a great opportunity for businesses in general and medical equipment companies in particular to feel secure in developing and operating
Policies on improving quality of healthcare
To curb the disease burden of chronic kidney disease, government initiatives prioritize the prevention of kidney failure progression and early detection The Ministry of Health (MOH) has enacted various measures, including public awareness campaigns, upskilling medical professionals in nephrology, and promoting early diagnosis and treatment options such as kidney transplantation, hemodialysis, and peritoneal dialysis These initiatives create a favorable environment for medical device companies to innovate and contribute to improved patient outcomes.
Vietnam's medical equipment import policy is currently complexed and unstable:
An import dossier included: circulation permits, medical device registration, equipment classification, catalogue, instruction for use, classification approved by MOH, summary of indications for use of the product, public price declaration, product label
The approval stages take a long time, often lasting for years MOH is about to replace circulation permits for C classified equipment with visa Long time approval will make businesses eager to prepare import dossier to have product for sales on time as planned
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The importation of advanced equipment into Vietnam requires careful planning and a long lead time, spanning several years from the initial import plan to successful entry into the country This can pose challenges for businesses seeking to respond to market needs promptly Refer to Appendix 1 of Decree 36/2016/ND-CP for further details on the import process and regulations.
In Southeast Asia, Vietnam is one of the countries with a highly developed economy From
2002 to 2018, Vietnam's GDP per capita increased 2.7 times, reaching over US$2,700 in 2019 2 Compared to 2019, GDP in 2020 increased by 2.91% 3
About the exchange rate difference In 2021, the State Bank has made a downward adjustment to the purchase price of foreign currencies twice once in June and the second time in August
2021 Accordingly, in the second downward adjustment, the exchange rate buying in USD decreased by 255 dong compared to the previous one This will cause disadvantages for importers like B.Braun Vietnam as the import prices become more expensive leading to a decrease in the profits of the importers 4
With the sustainable poverty reduction program, Vietnam has achieved remarkable achievements The national poverty rate decreased from 9.88% at the end of 2015 to 3.75% at the end of 2019 and below 3% in 2020 This program has contributed to improving people's quality of life and thus people have more opportunities to access medical treatment The Government focuses on investment in social welfare in general and in healthcare in particular
In the period 2016-2020, Vietnam invested 21% of the state budget in devoting to ensure social welfare (this is the highest among ASEAN countries) This is a great opportunity for medical
Medical device classification procedures are essential to ensure the safety and effectiveness of medical devices These procedures involve categorizing medical devices into different risk levels based on their intended use and potential risks The classification process typically includes a review of the device's design, materials, and performance, as well as an assessment of the potential risks and benefits associated with its use The classification of medical devices is important for several reasons, including determining the level of regulatory oversight required, informing labeling and marketing requirements, and guiding the development of appropriate safety and performance standards.
2 The World Bank, 2021 Tổng quan về Viêt Nam [Online] (updated 7 th April 2021) Available at: https://www.worldbank.org/vi/country/vietnam/overview#1 [Accessed 27 July 2021, 2:35 pm]
3 Tổng cục thống kê, 2020 Kinh tế việt nam 2020: một năm tăng trưởng đầy bản lĩnh [Online] (updated
13 th October 2020) Available at: https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2021/01/kinh-te- viet-nam-2020-mot-nam-tang-truong-day-ban-linh/ [Accessed 27 July 2021, 4:45 pm]
4 Thông tấn xã Việt Nam, 2021 Tỷ giá có thể sẽ tăng nhẹ vào những tháng cuối năm [Online] (updated
18 th August 2021] Available at: https://baotintuc.vn/thi-truong-tai-chinh/ty-gia-co-the-se-tang-nhe-vao- nhung-thang-cuoi-nam-20210818165511003.htm [Accessed 29 July 2021, 11:45 am]
In 2020, despite being heavily affected by the COVID-19 pandemic, Vietnam has also shown outstanding resilience, GDP per capita reaching 2.9% In January 2021, the pandemic had a lasting effect on households - incomes were about 45% less than in 2020 Tourism, restaurants, hotels and other services are almost closed The number of patients visiting hospitals has decreased significantly, causing revenue from the drug and medical equipment industry to be severely affected For hemodialysis machine since it can be used to treat early stage COVID-
19 patients to prevent severe progression of the disease, the business still have opportunities to grow
An increasing demand for disease treatment
Vietnam's population currently stands at approximately 98.385 million, with projections indicating a surge to 120.6 million by 2025 Notably, 55.5% of the population falls below the age of 35, contributing to an average life expectancy of nearly 76 years, surpassing comparable income countries in the region Despite these positive indicators, Vietnam faces the challenge of a rapidly aging population.
It is forecasted that by 2050 the age group over 65 will by 2.5 times 7
Not only the aging population, but the increasing number of kidney patients also puts pressure on the health sector According to a report of the Vietnam Dialysis Association, in Vietnam, an estimated 30,000 people with ESRD More than 50% of dialysis patients die under 5 years of dialysis and the number of people living 10 years or more accounts for only about 15-20%
5 https://danso.org/, 2021 Dân số Việt Nam [Online] (updated 14th October 2021) Available at: https://danso.org/viet-nam/ [Accessed 15 October 2021, 4:15 pm]
6 The World Bank, 2021 Tổng quan về Viêt Nam [Online] (updated 7th April 2021) Available at: https://www.worldbank.org/vi/country/vietnam/overview#1 [Accessed 27 July 2021, 2:35 pm ]
7 Công An Nhân Dân 2020 Việt Nam sẽ thành quốc gia “siêu già” vào năm 2050: Thách thức gánh nặng bệnh tật [Online] (updated 20th November 2020) Available at: https://cand.com.vn/y-te/Viet-
Nam-se-thanh-quoc-gia-sieu-gia-vao-nam-2050-Thach-thuc-ganh-nang-benh-tat-i588747/ [Accessed
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28 of the total number of people on dialysis 8
Porter's five forces analysis
Besides analyzing PESTEL, I also use Porter's five force analysis tool to analyze the factors affecting Vietnam's Dialysis machine industry as below:
10 Đình Nam, 2016 14.000 cơ sở y tế được kết nối qua phương thức thuê dịch vụ CNTT' [Online]
(updated 29 th June 2020) Available at: http://baochinhphu.vn/Bao-hiem-xa-hoi/14000-co-so-y-te-duoc- ket-noi-qua-phuong-thuc-thue-dich-vu-CNTT/280110.vgp [Accessed 02 August 2021, 10:11 pm]
11 Thảo Lan, 2020 Thành lập Hội lọc máu Việt Nam [Online] (updated 26 th October 2020) Available at: http://laodongxahoi.net/thanh-lap-hoi-loc-mau-viet-nam-1316973.html [Accessed 01 August 2021, 9:35 pm]
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4.2.1 High degree of competitive rivalry
It is a fact that despite being medical is one of a key industries of the country, in terms of technology, Vietnam's medical equipment is still out of date Many dialysis machines imported to Vietnam only meet the minimum treatment needs of patients, advanced features and safety features have not been paid much attention
The number of rivals is small but highly competitive These are the 5 main companies supplying dialysis machines operating in Vietnam: B Braun Melsungen AG; Baxter International Inc; Fresenius Medical Care AG & Co KgaA; Nipro Corporation; Nikkiso Co., Ltd
Due to their affordability, Vietnamese consumers embrace domestic distributors' products manufactured in China These products offer essential features that cater to the fundamental healthcare requirements of patients Their low cost makes them an accessible option for meeting basic treatment needs.
The difference in product price is a great matter of hospitals in Vietnam, especially with public hospitals Since 2020, all medical devices must have their prices published on the website: https://congkhaigiadmec.moh.gov.vn/, making price competition fiercer than ever
Below is the market share of dialysis machines in Vietnam analyzed based on the number of imported dialysis machines in 2019:
Figure 7 Market share of dialysis machine in Vietnam in 2019 For B.Braun, It has a great advantage that its market share in dialysis machine products is quite large, and the warranty and maintenance service is quite good, and users understand that this is a convenient product and high-end, so if given the choice, they will choose the Dialog+ machine over other products
MARKET SHARE OF DIALYSIS MACHINE IN VIETNAM 2019
4.2.2 Low threat of new competitors entering the market
There are many barriers prevent new medical equipment importers and distributors from entering the industry as below:
Medical equipment procurement in Vietnam involves stringent financial requirements and elaborate tender procedures Companies vying for tenders must demonstrate sustained profitability over at least three years and possess an average revenue for the preceding three years at least 2.5 times the tender package value The high tender package prices, often reaching billions of VND, necessitate partnerships with robust financial distributors However, establishing such a distribution network demands significant time and financial investment, making it challenging for new entrants to participate independently.
Well trained human resources: They need to have a team of engineers who are knowledgeable about products, well-trained with equipment certificates
The procedure for withdrawing from the industry is very complicated:
Enterprises must deal with the responsibility for warranty and maintenance issues for hospitals
Must be responsible for unfinished bidding packages
Therefore, new entrants are afraid of joining this industry
In Vietnam, up to 2021 there are a total of 1,531 hospitals, of which more than 86% are public hospitals and nearly 14% are private hospitals, mainly concentrated in large urban areas such as Ho Chi Minh City, Hanoi and Da Nang 1,318 public hospitals are managed according to a hierarchical system, classified by central, provincial, and district or commune levels 12
The form of purchasing medical equipment - especially complex machines such as dialysis machines is still through tender For public hospitals in big cities, the hospital can organize its own tender to buy medical equipment and biological products, or this can be done by the city's health department or through the Ministry of Health
As for the hospitals at the provincial and lower levels, the procurement of medical equipment
Vietnam's digital health market presents substantial opportunities for investors, driven by increasing healthcare demand, a growing middle class, and government support The market is projected to reach $2.9 billion by 2025, with key growth areas including telemedicine, e-pharmacy, and health insurance Telemedicine is particularly promising, with the number of users expected to surge in the coming years due to its convenience and accessibility.
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Medical equipment procurement typically involves a tender process overseen by the Department of Health Buyers can switch suppliers based on criteria they set Reputable brands such as B.Braun, FMC, Baxter, Nikkiso, and Nipro dominate the market The limited competition simplifies vendor selection, except for new brands Notably, the Ministry of Health as a key buyer holds significant influence in choosing products that meet hospital specifications.
B.Braun Vietnam's dialysis machine supplier is its parent company based in Germany Thus the bargaining Power of supplier is low
4.2.5 Low threat of alternative products
Once patients are diagnosed as end-stage renal failure, they have only 3 options to treat:
Peritoneal dialysis (PD) through peritoneal dialysis machine: Currently, Vietnam only Baxter provides PD is a method that has been available in Vietnam for a long time, however, it is not a Vietnamese doctor's first-line indication because this method requires patients to have their own sterile room at home, the high risk of infection if patients do not strictly followed infection prevention rules Cost of the method treatment is quite expensive, and patients in Vietnam cannot do it themselves at home, so they still have to go to the hospital to do it
Kidney transplantation: This is the ideal therapy for patients with end-stage renal failure However, the major surgery that can have many complications during the transplant process It requires the donor kidney to be compatible with the patient, the doctor's skill must be high, and the cost of kidney transplant is also expensive The kidney transplant rate is still low As of December 31, 2020, the total kidney transplant case was 5,255 cases 13
Hemodialysis (HD) treatment: as indicated 2 or 3 times per week depending on the patient's
13 https://vietnamnet.vn/, 2021 Chờ ghép tạng như nắng hạn chờ mưa vì còn nhiều rào cản [Online] (updated 23 th March 2021) Available at: https://vietnamnet.vn/vn/suc-khoe/cho-ghep-tang-nhu-nang- han-cho-mua-vi-con-nhieu-rao-can-721660.html [Accessed 03 August 2021, 2:14 pm]
That’s why the threat of substitutes for dialysis machines is low.
SWOT Matrix
To complete the market analysis step, I used the final tool of my market analysis - the SWOT matrix as below:
Strong Germany brand with over 20 years of experience in the field of drugs and medical equipment
Very good finance status through the years
Outstanding products (highest quality standards such as CE, TUV, highlight features, durability, large market share in
Vietnam, good warranty and maintenance service from B.Braun Vietnam)
The product is applied to treat COVID-19 patients at the early stage
B.Braun has loyal distributors; strong supports from parent company in Germany
The price of the product is higher than that of competitors and is an obstacle in tender The lower priced product is the preferred product
The current number of products is not diverse
Distributors in the province only act as commercial intermediaries
Good social welfare policies of Government
Policies on improving quality of healthcare
Strong IT development and IT application in medical field
Aging trend of Vietnam population and living condition lead to an increase in the number of
Living standards improved leads to high demand of high-end healthcare service
Unstable and complex import procedures
Exchange rate risk for importers
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Business strategy for Dialog+ machine market expansion of B.Braun Vietnam
Besides maintain current markets, from the above analyses, I suggested to broaden to new following potential markets as below:
High-end dialysis center is one of the target markets
Provinces/ areas do not have dialysis centers or the number of dialysis machines is not enough to serve the treatment needs of patients
To identify potential partners for high-end dialysis centers, I meticulously compiled a list of private hospitals with suitable infrastructure and patient demographics Subsequently, our team of engineers and sales professionals engaged with these hospitals to ascertain their interest in collaborating on the establishment of such facilities A comprehensive list of hospitals meeting the initial selection criteria is provided in Appendix 2 of the internship report.
To know the markets that do not have dialysis centers, or the facilities of the centers are not enough to meet the needs of hemodialysis patients, I conducted the following survey:
1- Purpose of the survey is to determine:
Reasons why patients from small provinces flock to Ho Chi Minh City and Hanoi for treatment instead of being treated in their hometown
Which provinces are lacking dialysis machines or need to upgrade dialysis centers
1000 patients who are under HD treatment in the most crowded hospitals in Ho Chi Minh like: Hoan My Saigon, Tam Tri Saigon, Thong Nhat, 115 People's and Cho Ray Hospital
1000 surveys were conducted in big HD center of Ha Noi such: Bach Mai, Vietnam – Germany, Hanoi Kidney, 103 Military, Thanh Nhan and Dong Da Hospital
These frontline hospitals in the South and the North in the treatment of dialysis patients are facing overloaded with the number of patients who mainly pour from the provinces, not Hanoi or HCM city residents Many center among these have to treat 5 shifts/ day A number of patients forced to accept dialysis night shift and stay in the cities for treatment
The survey was conducted online with the support of medical staff from the hemodialysis departments of the hospitals mentioned above Please see Appendix 3 for more details about the content of survey
Click on this link or scan the below QR code by Zalo app: https://forms.office.com/pages/responsepage.aspx?id=8r7RFWoK-Ua-
TAIyeTJeUcqZFE8RhmdFhuigWAq9hR9UOERPSjQ4TlZRSjFLOFpVUkwyVzNPNVYzN C4u
QR code to answer the survey:
Figure 8 QR code for doing survey
Reasons for not treating in hometown
(Information gained from sales team)
In the North of Vietnam
Estimated number of patients in the province: 500 patients Current maxium treatment capacity of the whole province:
- Bac Ninh Provincial General Hospital:190 patients
- Military hospital serving patients having military insurance: 20 patients
- 2/8 districts have dialysis centers: 120 patients
- The remaining 170 patients had to go to other provinces for treatment
Estimated number of patients in the province: 600 patients Current maxium treatment capacity of the whole province:
' Bắc Giang general hospital: 360 patients
- The remaining 188 patients had to go to other provinces for treatment
Dialysis centers are in the process of being completed under the co- operation of B.Braun and local hospitals
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In the South of Vietnam
The high-quality dialysis center that B.Braun joint venture with Van Gia An Hospital is in the process of being completed, the dialysis center of Hoang Anh Gia Lai Hospital is being upgraded in capacity
Trà Vinh 82 Tra Vinh Department of Health is about to receive 40 more dialysis machines
Vũng Tàu 65 The dialysis center at Le Loi hospital - Vung Tau with a scale of 40 dialysis machines is about to be put into use
Dương 35 Becamex Binh Duong dialysis center is about to upgrade 15 machines
Tây Ninh 45 The high-quality dialysis center that B.Braun joint venture with General
Hong Hung Hospital is in the process of being completed
Other reasons why patients don't go on dialysis at home including: Patients with complicated diseases such as chronic kidney disease with underlying diseases related to heart disease, diabetes, blood pressure need in-depth treatment of highly qualified doctors Pediatric patients have difficulty getting a vent The patients are Ho Chi Minh or Hanoi residents…
After having the statistics of the survey results, I found that in the North region, approximately 43% of patients are forced to go to the city for treatment because hemodialysis centers in their provinces have insufficient number of hemodialysis machines to serve the needs of patients In particular, I noticed that the number of patients from Bac Ninh and Bac Giang flocking to Hanoi for dialysis is very high After working with the sales team and engineers to study these two provinces on the actual number of dialysis patients, the number of existing dialysis centers in these two provinces, and working with the provincial hospital management and several district health centers We believe that these two provinces have potential for business development in
Currently, B.Braun has 3 product lines of dialysis machine Dialog+ as below, but in Vietnam only the first 2 product lines are available:
Due to the lack of availability of the DIALOG IQ HD Premium captive model and HD captive consumables in Vietnam, it is recommended that the company import this product line to diversify its offerings and cater to specific market demands.
I propose to introduce economical and middle class product lines to Bac Ninh and Bac Giang provinces for the following reasons:
The dialysis patient here is dependent on insurance support which requires the patient to reuse the blood line and dialyzer 6 times The percentage of ethnic minorities in Bac Giang is quite high, the economy is still difficult
The hospitals that initially agreed to cooperate are public hospitals and depend on the state budget
These two product lines have good quality with superior features and reasonable prices
I propose to sell high-end class product line to premium private hospitals for the following reasons:
These hospitals have budget sources that do not depend on the state budget
They are willing to pay a high price to buy devices enhance the high-end image of the hospital
Patients are those with good financial conditions, willing to pay for a set of blood lines and disposable dialyzers to ensure the safety and best quality of treatment for themselves
The machine has an intuitive design that brings a luxurious feeling to the hospital, is easy to operate, proven in Europe to save costs on warranty and maintenance
Regarding product price, in the market, popular mid-range products have the following prices:
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DIALOG IQ HD Premium captive model is a premium product with superior features, a higher import price to Vietnam than B.Braun's economical and middle-class products, and a higher price than other brands in general However, the expected selling price in Vietnam is set at 2,799 USD.
High-end private hospitals or even high-end public hospital dialysis centers will not be confused about the price when it is just at average one on website: https://congkhaigiadmec.moh.gov.vn; but its features are far superior to the mid-range
The main purpose is to sell consumables in the long run because once hospitals buy this machine, they will engage with B.Braun for a long time because the machine can only use consumables manufactured and provided by B.Braun and cannot switch to other consumables suppliers
Although it is the leading product in the dialysis machine market, other brands are also trying to surpass Dialog+ I still suggest the company to invest in branding for Dialog+ through:
Exhibition of medical equipment at large medical equipment seminars and conferences with intuitive display space design
Taking advantage of the public declaration website of the Ministry of Health to provide information about outstanding features of the product
Conducting product training sessions and introducing products at the hospital's HD departments
Increasing customer demand with the promotion that if customers buy from 20 dialysis machines, they will be given an RO water system with the corresponding capacity
Currently, our distributors in provinces only play the role of commercial intermediaries Warranty and maintenance tasks are still in charge by B.Braun I suggest enhancing the role of distributors in Bac Ninh and Bac Giang so that they can both become loyal distributors of
B.Braun and actively support hospitals in the region in technical terms as quick as possible To do that, the criteria for selecting suppliers
Having strong financial status for at least the last 5 years;
Having won the tender and supplied medical equipment to hospitals in the area for at least the last 5 years and
Having a team of engineers ready to be trained by B.Braun to promptly repair malfunctioning equipment in the area they provide
In addition, we will also conduct intensive training for the distributor's sales team with in- depth product knowledge so that they can help us proactively in expanding the market
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CONCLUSION
Achievements of the Internship
My brief yet impactful internship in Sales & Marketing at B.Braun Avitum Division significantly enhanced my practical knowledge in project management, strategic management, and task management This experience immersed me in the intricacies of the medical device industry, aligning with my career aspirations The knowledge and skills acquired during this internship laid the groundwork for my future endeavors in this field.
Throughout my internship experience at B.Braun Avitum Vietnam, I actively contributed to the company's sales and market share growth through strategic campaign development As part of my role, I diligently analyzed sales performance metrics and proposed innovative marketing solutions aligned with the overall business strategy By leveraging my analytical insights and marketing expertise, I aimed to enhance the effectiveness of the company's marketing efforts and drive measurable results.
Apply the academic knowledge learned in the AMI course to the real world and share it with Division mates
A very interesting thing about B.Braun Avitum Vietnam is that every employee of Division is experienced and has a long time with B.Braun Company Mr Nguyen Dai Thanh- Division Head has led Division up to now for nearly 20 years Other members have been with Division for about 5 to 15 years They really have a lot of practical experience in the medical equipment industry in general, and the hemodialysis machine industry in particular Their management and customer consulting skills are very skillful and professional However, there the sales work quite separately They will take on the sales they are assigned and try to complete it, trying to manage themselves with the difficulties encountered I think this will make them feel lonely and pressured at times, and they won't have the opportunity to learn from other colleagues' problem solving experiences I have suggested periodically having training sessions on industry products and sharing project experiences Thanks to such sharing sessions, sales representatives will have the opportunity to receive input from others At the same time, I can also share more about the academic management knowledge that I have learned in the AMI course so that my colleagues can put them into practice and improve their work efficiency Especially the
41 knowledge related to distribution channels and the skills of collecting market information and presenting product information in front of customers in a professional manner have been highly appreciated by the sales & marketing team The special thing is that the time when I participated in the internship at the company was the time when the Covid-19 epidemic was breaking out in Hanoi and the southern provinces Working from home, limiting contact with customers has caused a lot of confusion for sales representatives in maintaining relationships with customers Remote sales communication skills through Zoom tools, Microsoft team, and mobile phone, email shared from me have been highly appreciated by division mates for their obviously high efficiency and effectiveness This also greatly contributes to connecting employees with each other
Through the internship, I had an overview of business activities in the field of importing and distributing medical equipment in general, and BBVN in particular Besides, I also got to know how to implement business projects in this field Thanks to that, I gained more knowledge about the medical device industry in general and especially the hemodialysis machine industry in Vietnam and learned how a leading company in the industry maintains its position
After a long time in the market, the dialysis machine industry has almost become a “red ocean”
In order to increase the opportunity to expand potential markets, I have tried to design business strategy and surveys to increase market share for B.Braun Avitum Vietnam HD machine Through market research and planning, I have learned valuable knowledge about setting up distribution channels, on the other hand, the knowledge shared by the teachers in the AMI course is also applied in an effective manner in practice.
Shortcomings of the internship period
Although I have worked hard and put a lot of effort into my short internship, my main goal has been achieved, there are still goals that cannot be achieved
My internship coincided with the COVID-19 outbreak, particularly in certain provinces such as Ho Chi Minh, Da Nang, and Can Tho Consequently, limitations were imposed on my ability to conduct field surveys in certain locations, as restrictions were in place due to the pandemic.
Due to travel restrictions, I am unable to visit distributors or hospitals in person This limitation hinders my ability to gain a comprehensive understanding of the distribution system and the utilization of HD machines in these regions As a result, my perspective is restricted, and I am unable to effectively assess the actual use of HD machines within hospital settings.
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Secondly, due to my lack of practical knowledge of the hemodialysis machine market and limited knowledge regarding hemodialysis pathology, I had to spend a lot of time researching these issues The knowledge I have gained is very useful in developing a strategy to protect and expand the market for B.Braun Avitum Vietnam's dialysis machines, but that knowledge is still not practical and complete enough As a result, the plan does not provide enough information for those who implement it and cannot produce positive results without further research.
Suggestions for B.Braun Vietnam
With a short internship period, even though I had an overview of the company's operation situation as well as that of B.Braun Avitum Division, it was still not enough for me to make any deeper insights or deeper suggestions However, from my point of view, I would also like to suggest some comments as follows with the hope that they will contribute a small part to the growth of the company and B.Braun Avitum Vietnam Division:
The necessary of having R&D department :
Besides instructing customers to operate the dialysis machine, regular updating of new features of the device, as well as meeting with customers to discuss about product highlights should be focused From there, the company can identify the necessary and urgent level of product research and development As a result, the company can know which characteristics on the dialysis machine need to be focused on for development and which functions need improvement
In the current system, customer information is stored confidentially and only accessible to sales staff in their respective regions Though employees have long-standing tenure within the division, staff turnover poses a significant challenge for new hires to establish relationships with existing customers To address this bottleneck, the implementation of a customer data management system is recommended Such a system would streamline customer data management, enabling the company to efficiently access and nurture customer relationships.
To enhance technical support, the company should implement a system that enables customers to report troubleshoots for HD machines This data should be seamlessly transferred to the technical department, providing them with real-time visibility into customer issues By leveraging this centralized reporting system, the technical team can effectively plan their time and assign resources to address incidents promptly, ensuring timely resolution and improved customer satisfaction.
In addition, the system also helps to save common troubleshooting systematically and help planning department to import number of spare part more accurately, avoiding the excess or lack of some items causing delayed repair process and customer dissatisfaction
Conclusion
Although the internship period was short, it helped me learn a lot of useful knowledge such as developing project support skills, communication skills, and increasing customer relationships B.Braun Vietnam is a leading professional multinational company which have a great working environment in Vietnam Being able to having internship there is a very meaningful thing for me There, under the guidance of leaders, experienced and enthusiastic colleagues, my working skills and understanding are increased In addition, my working attitude is also improved in a more professional way Currently, I feel quite confident in my skills and working attitude The most interesting thing during the internship was the knowledge taught by the teachers in the AMI course has been very useful and valuable for me to apply them to my practical work
Thanks to this internship, I had an overview of business operations, as well as gained certain experiences in the dialysis machine industry I am very grateful for the guidance of Dr Le Thanh Binh and the enthusiastic help of B.Braun Avitum Vietnam Division Head- Nguyen Dai Thanh helped me build a business and a marketing strategy to expand the market for dialysis machine to domestic customers
I’m looking forward to receiving comments from the teachers to make my report more professional and complete
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1 Johnson, G., Whittington, R., Regnér, P., Scholes, K & Angwin, K 2017 Exploring Strategy: Text and Cases, 11 th ed., Pearson
2 Ricky W Grifin & Micheal W Pustay, International Business 7th edition, available at: https://www.pearson.com/uk/educators/higher-education-educators/program/Griffin-
International-Business-Global-Edition-7th-Edition/PGM1034062.html
3 Joe Pullizzi , 2014, Epic Content Marketing, available at: https://www.academia.edu/44522835/Epic_Content_Marketing_by_Joe_Pulizzi
Web resources: https://www.bbraun.com.vn/vi/company.html https://tratig.vn/blogs/phan-loai-trang-thiet-bi-y-te/thu-tuc-phan-loai-trang-thiet-bi-y-te https://www.worldbank.org/vi/country/vietnam/overview#1 https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2021/01/kinh-te-viet-nam-2020-mot- nam-tang-truong-day-ban-linh/ https://baotintuc.vn/thi-truong-tai-chinh/ty-gia-co-the-se-tang-nhe-vao-nhung-thang-cuoi- nam-20210818165511003.htm https://danso.org/viet-nam/ https://cand.com.vn/y-te/Viet-Nam-se-thanh-quoc-gia-sieu-gia-vao-nam-2050-Thach-thuc- ganh-nang-benh-tat-i588747/ http://baochinhphu.vn/Bao-hiem-xa-hoi/14000-co-so-y-te-duoc-ket-noi-qua-phuong-thuc- thue-dich-vu-CNTT/280110.vgp https://ictvietnam.vn/thi-truong-y-te-so-viet-nam-co-hoi-cho-cac-nha-dau-tu-
Table 1 Illustration of company’s background information 2
Table 2 Company’s financial statement from the years 2018 to 2020 Currency: VNĐ, 7
Table 3 Business division structure of B.Braun Vietnam and corresponding products 12
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Figure 1 Main manufacture based in Thanh Oai industrial complex 3
Figure 2 Milestones in the development history of B.Braun Vietnam 4
Figure 5 The fluctuation of important financial figures of B.Braun Vietnam’s from 2017 to 2020 8
Figure 6 B.Braun Vietnam organizing structure 9
Figure 7 Market share of dialysis machine in Vietnam in 2019 30
Figure 8 QR code for doing survey 35
SWOT Strengths - Weaknesses - Opportunities - Threats
PEST Politics -Economic- Social- Technology
CSMO Chief sales and marketing officer
EHS Environment, Health and Safety
SBU-HD Strategic Business Unit – Haemodialysis
QR (code) Quick response (code)
ABPM Automatic Blood Pressure Monitoring/ Management
ESRD End- Stage Renal Disease
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Decree 36/2016 / ND-CP on management of medical equipment, effective from July 1, 2016, to be able to trade in medical equipment, businesses need to have:
Announcement of standards applicable to class A medical equipment;
Registration number for circulation of medical equipment of classes B, C, D approved by the Ministry of Health
The classification of medical equipment into groups A, B, C, D should be carried out by a qualified organization according to the standards of the Ministry of Health Accordingly, many businesses will have to outsource the equipment classification service they are doing business because these businesses are not eligible for self-classification
For Class C medical equipment such as dialysis machines, an import license is required to be imported to Vietnam This license is valid for one year only Every year, the company's registrar must carry out procedures to renew this license The process of approving the extension takes about 4-5 months, so this department has to work continuously to keep up with the import and sales schedule of the company
By April 2021, the Ministry of Health is drafting to extend the import license until the end of December 31, 2022, after that, medical equipment including dialysis machines to be imported into Vietnam must have Visa instead of import license 15 Thus, businesses will have to rush to prepare documents to submit for Visa so that they can promptly import equipment to Vietnam on schedule for sales
Theo quy định của Bộ Y tế, thiết bị y tế được phân loại thành 4 nhóm: nhóm A, nhóm B, nhóm C và nhóm D Mỗi nhóm thiết bị có những quy định quản lý riêng về điều kiện nhập khẩu, lưu hành, sử dụng và bảo quản Do đó, việc phân loại thiết bị y tế là rất quan trọng để đảm bảo an toàn cho người bệnh, cũng như tuân thủ đúng các quy định của pháp luật Việc phân loại này được thực hiện theo trình tự cụ thể, bao gồm các bước như nộp hồ sơ, đánh giá hồ sơ và ban hành quyết định phân loại.
15https://azlaw.vn/gia-han-thoi-gian-cap-giay-phep-nhap-khau-ttbyt.htm
1 Việt Pháp Hà Nội hospital No 1 Phuong Mai, Dong Da District, Hanoi
2 Hòe Nhai general hospital No 17-34 Hoe Nhai, Ba Dinh, Ha Noi
3 Vinmec Times city international hospital 458 Minh Khai, Hai Ba Trung District, Hanoi
4 International Hải Phòng general hospital 124 Nguyen Duc Canh, Le Chan, Hai Phong ĐÀ NẴNG
5 Hoàn Mỹ Đà Nẵng general hospital 161 Nguyen Van Linh - Da Nang City
6 Tâm Trí Đà Nẵng general hospital 64 CMT8, Ward Trung, Cam Le District, Danang city
7 Tâm Trí Nha Trang general hospital
57-59 Cao Thang, Phuoc Long Ward, Nha Trang, Khanh Hoa
8 Hoàn Mỹ Đà Lạt general hospital Mimosa Street, Ward 10, City Da Lat
9 Columbia Asia Bình Dương hospital
Hoa Lan Street, Thuan Giao Ward, Thu n An Town, Binh Duong
10 Sài Gòn Bình Dương general hospital
No 39 Ho Van Cong, Area 4, Tuong Hiep Tinh Ward, Thu Dau Mot city, Binh Duong ĐỒNG NAI
11 CTCH Sài Gòn – Đồng Nai international general hospital F99, Vo Thi Sau Street, Thong Nhat Ward, Bien Hoa,
12 Columbia Asia Gia Dinh hospital No 01 Trang Long, Binh Thanh District, Ho Chi Minh
13 Vinmec Central Park international hospital 208 Nguyen Huu Canh, Binh Thanh District
14 Phuong Chau international hospital 300 Nguyen Van Cu (extension), An Khanh Ward,
Ninh Kieu District, City Can Tho
List of potential premium hospitals
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