1

TABLE OF CONTENTS
INTRODUCTION.........................................................................................................................3

MAJOR FINDINGS......................................................................................................................4

I. Introduction to sub-sectors, different types of organizations in the industry and the

market size.....................................................................................................................................4

1. Background of three companies (Vietmedical, JVC and Amvi Biotech).......................4

2. Sub-sectors...........................................................................................................................4

3. Different types of organizations.........................................................................................5

4. Market size...........................................................................................................................6

II. Overview about Vietmedical and its competitor..............................................................6

1. Products and services of three companies........................................................................6

2. Size, legal form and scope of the organization.................................................................7

3. Vision, mission and business objectives of 3 companies..................................................9

4. Stakeholders and stakeholders mapping........................................................................11

III. Business functions of Vietmedical....................................................................................14

1. Organizational structure..................................................................................................14

2. Advanatges and disadvantages Vietmedical's organizational Structure.....................15

3. Interrelationships of the difference organizational function........................................16

CONCLUSION............................................................................................................................17

APPENDIX..................................................................................................................................18

REFERENCE LIST....................................................................................................................21

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3
 INTRODUCTION
According to Vietnam Briefing, in the healthcare sector, medical equipment is one of the most
promising sub-sectors for foreign investors because most of the medical equipment in Vietnam is
imported from foreign companies (Shira et al, 2021). This also means that the medical
equipment distribution industry has a lot of competitors. In Vietnam, there are many companies
supplying medical equipment and supplies with various sizes and types of businesses.

In this research, Viet Medical Trading and Service Joint Stock Company (Vietmedical) is the
main topic that I will focus on researching to better clarify the aspect of distribution in the
medical industry because it is one of the prominent companies in this field. Therefore,
Vietmedical's competitors must also be on par with it and I will focus on researching two more
subjects: Japan Vetnam Medical Instrument Joint Stock Company (JVC) and American
Vietnamese Biotech Incorporation (Amvi Biotech).

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 MAJOR FINDINGS

I. Introduction to sub-sectors, different types of organizations in the industry and the

market size
1. Background of three companies (Vietmedical, JVC and Amvi Biotech)
Vietmedical is a member of VMED Group, called the leading company within the field of
medical equipment distribution in Vietnam; Vietmedical always puts peace of mind first, trusting
doctors and medical staff with top quality technical support services within the shortest time.
Vietmedical has proven to be a strong, reliable and capable partner in implementing large
medical projects, trusted by many Medical Associations and the Ministry of Health.

Another competitive company of Vietmedical is Japan Vietnam Medical Instrument Joint Stock
Company (JVC). Formerly known as Japan Vietnam Medical Instruments Co., Ltd. In 2001,
JVC started operating in the healthcare field with 5 employees and the charter capital of 6 billion
VND. In 2004, a representative office was established in Ho Chi Minh City, marking a milestone
in market expansion of JVC. In 2010, Japan Vietnam Medical Instrument Co., Ltd changed its
name to Japan Vietnam Medical Instrument Joint Stock Company. After 10 years of continuous
efforts, JVC succeeded with an Initial Public Offering on the Ho Chi Minh City Stock Exchange.

The last competitor is American Vietnamese Biotech Incorporation (Amvi Biotech, Inc or
AMV). Amvibiotech was established in 2002 by a joint venture of The Sun Co (100% foreign
capital), Incomex SaiGon (100% state capital) and Dopharco (100% state capital). The company
operates nationwide and concentrated mainly in Hanoi, Ho Chi Minh, Phu Tho, Khanh Hoa, Hau
Giang, ... AMV is currently the official distributor of medical equipment products of major
corporations in the world such as: Fujirebio, Toshiba, Tosoh, Conanics, Fukuda Denshi, etc.

2. Sub-sectors
An industry is a group of productive businesses or organizations that produce or supply goods,
services, or sources of income. In economics, branches are often classified as primary,
secondary, and tertiary (Crisis, n.d.).

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The primary sector of a nation economy includes agriculture, forestry, fishing, mining,
quarrying, and mining. This process includes extraction and harvesting of natural resources/raw
materials.

Secondary sector is also known as manufacturing industry, manufacturing, constructing,

processing producing goods that are the resource obtained from companies within the primary
sector.

Tertiary industry, also known as service industry that business provide services to business and
consumers by selling goods. In free market and mixed economies, the sector often has a mix of
private and government enterprises.

Based on the above 3 sub-sectors, Vietmedical belongs to the tertiary sector because they are just
a service industry, focusing mainly in the field of distribution. Remaning two companies (JVC
and AMV) are the secondary sector and the tertiary sector because they both manufacture goods
and provide equipment and services to hospitals and patients

3. Different types of organizations

Public Sector Organization - The government runs this area for the people. The aim is to supply
essential public services and to utilize available resources and public services so that they can
best benefit the community, improving society for the better. One of organization in public
sector is Vietmedical. The main objective of Vietmedical is to supply different types of products
and services to help the medical industry in Vietnam. All employees of Vietmedical are working
hard every day with the desire to bring profound changes in medical examination and treatment
activities and health to Vietnamese people, improving the health of the country.

Private Sector Organization - is the part of the economy owned and operated by the private
sector, not subject to state management because its main objective is to generate profits for the
organization. If the government not involved in the organizations leadership, the sector is called
citizen sector. Vietmedical is also an organization in this industry. Vietmedical makes constant
efforts to leading in the field of medical equipment distribution in Vietnam with the highest
revenue as well as the quality of services and products.

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Voluntary Sector Organization - Its main goal is to enrich and develop society without profit.
Therefore, it is an independent civic organization, creating social wealth and helping to improve
society, selflessly working for the good of society. Vietmedical is not this type of industry
because Vietmedical provides products and services for medical industry but also hopes to get
revenue to develop the company.

4. Market size
Market size is defined as the total number of sales or the maximum amount of stock a business
can see, usually determined in a particular year (Melendez, 2019).

According to Mr. Etienne Szivo (2019), Vietnam's medical equipment market is a growing
market with a lot of potential. This potential is ensured by three factors: Increasing demand for
modern equipment, policies to develop medical infrastructure and international investment. As
of 2016, Vietnam has about 1,346 hospitals – the potential customers of the medical equipment
industry - of which public hospitals account for 86.3% (equivalent to 1,161 hospitals).
(Anonymous, 2019). Since then, all 3 companies have great opportunities in supplying medical
equipment to hospitals based on market size. Most of the 3 companies have the opportunity to
expand the international market because they are the official and exclusive distributors of
medical equipment products of major corporations in the world.

II. Overview about Vietmedical and its competitor

1. Products and services of three companies
Vietmedical is not only the exclusive distributor of high-end product lines of the world's leading,
but also focuses on after-sales service with "24/7 technical service" in warranty and
maintenance, repair and user training. In addition to the strong development of the medical
industry, Vietmedical is also a pioneer in providing comprehensive and intelligent "medical
solutions" by combining modern medical equipment with information technology.

Viet Nhat General Clinic was established in 2009 with the purpose of meeting the needs of on-
site medical examination of industrial zones. During 20 years of establishment and development
Japn Vietnam Medical Instruments JSC (JVC) has always been consistent with the goal of
becoming a leading enterprise in the field of medical industry with distribution of medical

7
equipment. investment in socialization, and technical services for repair, maintenance, and
periodic maintenance of medical equipment, polyclinics.

Amvibiotech was active in the field of manufacturing and trading bio-medical diagnostic
products in the early days of its establishment. Amvi Biotech implements investment projects to
build hospitals, provide medical equipment for hospitals; projects on leasing and investing in
machinery, equipment, and high-tech products imported from Japan and US. The company also
implements joint venture investment projects, linking testing centers at hospitals and medical
centers according to the model of socialization.

2. Size, legal form and scope of the organization

a. Size, legal form and scope definition
a.1. Size

The structural property of an organization is its size, which can be measured in terms of space
volume, sales volume, net assets, customers, or the number of people employed (Theodore,
2009). In Vietnam, businesses are categorised into four groups based on total capital, total
income, and the number of employees: micro, small, medium, and large. (Vietnam, Luatvietnam,
2020).

Figure 1. Business size in Vietnam (OECD, 2010)

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a.2. Legal form

The legal structure in which a company chooses to operate is a crucial decision that affects how
the organization's money and assets are structured. Entrepreneurial firms have a number of legal
business structures to select from. Each one necessitates a distinct profit and loss plan (Mastering
Strategic Management, n.d). According to The Business Environment, there are five basic
business models represented by legal forms. It including Partnership, Incorporation, Sole trader,
Joint stock company and Limited company: Private limited company and Public limited
company

a.3. Scope

The scope of organization is all activites are performed by business, including sales, services,
product developments, marketing and contracts. Essentially, business scope refers to all of a
company's daily operations, particularly those that are essential to generate income.
(Anonymous, 2020)

b. Legal form, size and scope of 3 companies

Vietmedical JVC AMV

Legal
Joint Stock Company Joint Stock Company Incorporation Company
form

Large size company:
Vietmedical's charter
capital is VND 50 billion,
but with the participation
of more than 200
Size
employees (as of 2021)
and annual revenue
reaches "trillion".
(Vietmedical, 2021)
Large size company: JVC
with more than 1 trillion
VND (as of 2020) and is
listed on the stock
exchange and private
placement for strategic
shareholders
(JVC, 2020)
Large size company:
AMV with more than 911
trillion VND (as of 2020)
and also listed on the stock
exchange and private
placement for strategic
shareholders
(AMV, 2020)

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 Vietmed provide high
quality and reputable
products and consulting
solutions for hospitals.
Moreover, Vietmedalso
organizes and implements
training programs from
departmental scale to
Scope inter-hospital conferences
and seminars and
conducts demo programs
at hospitals from central
to district levels to help
medical staff have
conditions to practice
right on the device
JVC has fulfilled its
commitment from the early
days of its establishment to
become a bridge bringing
Japanese quality and
Japanese values to
contribute to the
development of Vietnam's
healthcare with a series of
high technology and
guaranteed equipment
quality with two branch at
Hanoi and Ho Chi Minh
City
AMV operates nationwide
and focuses mainly in
Hanoi, Ho Chi Minh, Phu
Tho, and Khanh Hoa. The
company is focusing on
implementing and
investing in centralized
testing center projects. It is
expected that this will be
the main source of revenue
for the Company in the
future. In addition, AMV
also invests in medical
equipment technology or
bidding projects

3. Vision, mission and business objectives of 3 companies

a. Vision

The planning or purpose of what the business will become at some point in the future, based on
the goals is known as the vision of the business. (Anonymous, 2021). Vietmedical intends to
innovate towards a digital health future with smart hospitals and the most advanced solutions
and systems, which will be appreciated in the world. Besides, JVC's goal is to become the
leading investment company providing comprehensive medical solutions in Vietnam. And AMV
wants to strive to become the leading manufacturer in Vietnam and the region in the field of
producing high-tech diagnostic biological products. It is clear that the vision of all three hotels is
almost the same when they want to assert their position in the Vietnamese healthcare industry
and international partners.

b. Mission

Mission is the primary goal of an organization or a company. It is a summary of goals and

values. The mission statement explains what you do for customers as an organization. (Paauwe,

10
n.d). Vietmedical always accompanies the Vietnamese health industry in improving the quality
of healthcare services with mission “Because of happiness and healthy of people”. On the other
hand, JVC because of its sense of responsibility wants to contribute to the development of the
country's health sector. However, Amvi Biotech is for the benefit of its customers, improving
people's lives and health by preventing disease by providing the most reliable and cost-effective
diagnostic tests.

c. Business objectives

Business goals are specific processes that companies hope to maintain as their organizations
grow. This means analyzing, evaluating, and understanding where the business is headed now
and where it wants to be in the future. They are often long-term and represent a global vision
(Crime, n. d).

Vietmed's objective is to affirm its position in the Vietnamese equipment distribution market and
international partners. According to Ms. Do Lan Phuong - Vietmed's Board of Directors, the
company's main goal is to continue accompanying the Vietnamese healthcare industry in
improving the quality of healthcare services, contributing to solving major challenges. of the
current health sector related to medical equipment and human resources. (Suckhoedoisong,
2017).

AMV is one of the first partnerships in Vietnam to manufacture medical equipment. Objective of
AMV is striving to become a large and reputable distributor in the field of pharmaceuticals and
medical equipment nationwide. Consolidate and develop the market, ensuring long-term and
sustainable market exploitation. Ensure financial resources are always strong enough to serve
AMV's goals in each specific time. Especially improve the management capacity of the
management staff, build a professional management system. Along with the main goal is
Quality, efficiency and prestige.

JVC’s objective is chain of activities during business operation. The company's orientation is to
become a reliable partner for customers and to put service quality first. Focused on finding and
developing new products in addition to expanding the business in ophthalmology and dentistry.
Promote technical services to ensure repair and maintenance contracts for medical equipment

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and transform the model of mobile polyclinics in the center of Hanoi to supplement information
technology business and apply technology high technology in medical.

4. Stakeholders and stakeholders mapping

a. Stakeholders

A person, institution, or organization involved in or connected with commercial activity could be

a potential stakeholder. Stakeholders have the ability to affect or be influenced by company
decisions, goals, and strategies, but not all stakeholders are created equal. Stakeholders are
divided into two categories based on their relationship with the company, which might be
internal or external.

Figure 2. Stakeholders of a company

- Government:

Government influence and collaborative characteristics are the same across firms. Government
has a great influence on the operation of firms. Because Vietnam is a socialist country, it must
operate according to the regulations of the state and the standards of the society and the
community. The operation of the organization must be based on ethics and Vietnamese law.

- Customers

Customers are one of the most important factors that form the value of a business. Although it is
a company that distributes medical equipment to serve the health examination needs of people.
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But Vietmedical and its competitors would not exist without hospitals because patients cannot
use the machines themselves. Hospitals are a key driver of business performance thanks to their
long-term relationships. For private hospitals, shareholders can directly choose which hospitals
to distribute without bidding. As for public hospitals, companies will have to participate in
bidding, vote to evaluate function, quality and price. From there, the hospital will be the party to
choose the distribution company.

- Shareholders: Those who hold shares in the company and participate in the company's
development strategy. All 3 companies have the different number of shareholders holding shares
and different responsibilities.

- Employees: have large financial and time investments in the business, and play a key part in
the organization's strategy, tactics, and operations.

b. Stakeholders mapping

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 Figure 3. Stakeholders mapping of Vietmedical

Based on map above, despite being applied by the Government with low interest rates,
Vietmdeical is controlled by government management agencies at all levels for compliance with
the law. Vietmedical believes that they can only prosper when their customers excel, creating
trust and loyalty with the hospitals. Vietmedial workers don't have a big impact, but an
organization can't function without them.

Figure 4. Stakeholders mapping of JVC

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According to the stakeholder map, Customers have a lot of impact on business operations and
high demand for products, so the firm is taking activities to raise hospital interest by targeting
spend on a reputable distribution company. As a Listed Joint Stock Company, JVC will have the
ability and motivation to focus on all the equity holders in the company.

Figure 5. Stakeholders mapping of AMV

In fact, AMV is a joint stock company with foreign capital, it and its related parties have certain
similarities in terms of customers, employees, central operations and shared shareholders. The
structure of employees and shareholders of AMV is similar to JVC company

III. Business functions of Vietmedical

1. Organizational structure
The structure of the organization, which encompasses the structure, procedures, people, and a set
of actions to achieve the goal, is the framework of department interactions (SHRM, n.d). Despite
the fact that structure is not a tool for coordination, it has an impact on all aspects of an
organization's activities.

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 Figure 6. Vietmedical’s organizational chart

From top to bottom, Vietmedical's organizational structure is functional and hierarchical, as

shown in the diagram above. The VMED group is governed by a general leadership, which is
followed by a partition into four blocks, one of which is Vietmedical. Consumables business,
Service engineering business, Equipment sales, and Testing are the four main divisions of
Vietmedical. The reporting system will be elevated from the ground up and aggregated for
general management to use in determining goals, directions, and future strategy.

2. Advanatges and disadvantages Vietmedical's organizational Structure

• Advantages: When employees have a specific job in a department block, they are classified
according to their competence. Multiple layers of functions in one department are fairly common
in a major corporation like Vietmedical. Furthermore, grouping people by purpose explains the
organization's roles and obligations. It will reduce the amount of time-consuming and inefficient
processes by allowing managers to distribute tasks to the suitable staff.

• Disadvantages: Because teams specialize on a specific area, staff from other departments are
unable to adapt and share ideas, which could be damaging to Vietmedical's long-term success.

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 3. Interrelationships of the difference organizational function
Each division in the company operates according to the business goals of the company, but all
departments are interrelated with each other.

The Financial Management Department is in charge of all of the company's financial matters, as
well as all issues relating to laws and rules. This section creates a monthly budget for the
company's complete operation. This department requires information from the revenue
department in order to complete the end-of-term review and analysis, as well as appropriate
strategies and budgets for the future periods.

The Technical Service Department is just as important to the company as it is to all other
departments in the company. Because they provide Vietmedical's main service of repairing,
maintaining equipment for customers, this is absolutely important to the process of satisfying
stakeholders.

The Equipment Sales Department is the main division in the company. Responsible for
delivering products to customers, managing quality as well as bringing financials and KPIs to the
company. Act as a satisfaction coordinator between stakeholders and customers, brings their
value and keep them with trust and loyalty.

The efficient working of parts will guarantee that information is delivered in a consistent
manner. Departments can work together in the future to help each other flourish and generate
long-term value. Specific issues, such as technical, financial, or customer feedback, might be
offered whenever another department need it. However, reaching an agreement amongst
departments on the interchange of working methods or ideas for completing tasks to achieve
common goals is difficult.

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 CONCLUSION
In summary, this study describes an overview of Vietmedical, including field of operation,
vision, mission, legal form, scope, scale and stakeholders compared to two competitors. In this
case, stakeholder mapping is used to assess each company's model improvement performance.
Furthermore, this analysis delves deeper into Vietmedical's business structure, market operations
and interrelationship of departments to see potential long-term value for growth.

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 APPENDIX

Figure 1. Figure 1. Business size in Vietnam (OECD, 2010)

Figure 2. Stakeholders of a company

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Figure 3. Stakeholders mapping of Vietmedical

Figure 4. Stakeholders mapping of JVC

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Figure 5. Stakeholders mapping of AMV

Figure 6. Vietmedical’s organizational chart

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22
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