Drug Distributor Search in the Other Asian Countries

Hong Kong’s healthcare and medical markets are expanding, driven by an affluent and aging population. The country is also home to a well-developed healthcare industry. Hong Kong’s pharmaceutical market is particularly attractive because firms that are successfully operating in Hong Kong can gain good credibility to expand into the Chinese market. Many drug distributors in Hong Kong are also well connected to the healthcare market in Macau.

However, it can be complicated and time-consuming to find a great pharmaceutical distribution partner in Hong Kong that is the right fit for your company. While there are good Hong Kong drug distributors, they may not be accepting any new clients due to the growing number of foreign drug companies now doing business in the region.

It can take a lot of time and energy to find the right Indonesian pharmaceutical distributors. Because Indonesia is composed of thousands of islands and there are only a few national pharmaceutical distributors, foreign drug firms will likely need to select several regional or even local distributors to ensure their products are available throughout the country.

There are about 18,500 registered sales outlets for pharmaceuticals alone, and distribution typically takes place through local wholesalers. Partnering with great distributors is crucial for your pharmaceutical product’s success in Indonesia.

Though not the largest medical market in Asia, Korea’s medical market is an important destination for foreign firms. However, the Korean culture makes doing business there very distinct from doing business in other Asian countries.

Relationships of trust are a key aspect of business in Korea. In order to ensure the reliability and success of the relationship with your Korean distributor, introductions via extended family, old classmates, or other Korean contacts that you know well are highly recommended. Signing up distributors that you meet for the first time at a trade show without any previously established connection can lead to potential problems later on in the relationship.

Due to the relatively small size of the country, choosing a single competent Korean pharmaceutical distributor is often sufficient to effectively cover distribution for all of Korea. However, the greater Seoul medical market takes up approximately one-half of the entire Korean medical market, and oftentimes distributors in Seoul will employ sub-dealers in the smaller Korean cities.

The medical market in Malaysia is growing rapidly. As the economy, the middle class, and urbanization continues to expand, Malaysia will be an increasingly important medical market for foreign drug manufacturers.

The Malaysian government is committed to rapidly developing the country’s healthcare sector, supporting significant spending on healthcare infrastructure, medical services, medicines and medical devices. For high-end imports of both medical devices and drugs, foreign companies dominate the market.

Due to the fragmented geography of the country, which is split into two by the South China Sea and incorporates several small islands, finding a qualified, reliable distributor with the necessary capabilities and infrastructure to successfully distribute your pharmaceutical product is all the more important.

The Philippine pharmaceutical market offers foreign drug companies many opportunities. While domestic drug companies do manufacture many generics, Filipinos who are able to afford branded pharmaceuticals show a strong preference for the branded products. Foreign drug companies have a market share of about 75% in the Philippine drug market.

Identifying the right pharmaceutical distributors for your company in the Philippines can be complicated. Because the Philippines is made up of thousands of islands, many of which are difficult to access due to poor infrastructure and logistics, there are not many national drug distributors. Foreign pharmaceutical companies may consider choosing multiple regional distributors to effectively market their products in the Philippines.

Singapore has invested significantly in pharmaceutical research and development. The country’s efficient customs and simple import/export procedures allow time-sensitive drug products to easily be shipped to Singapore and through Singapore to markets around Southeast Asia. A number of prominent global distributors have built regional headquarters or hub operations within the country.

Although there are many capable pharmaceutical distributors in Singapore, it is important to find the most highly qualified distributor with expertise in your particular drug product.

Due to an increasingly wealthy population, a growth in lifestyle and Western diseases, and a demographic trend towards aging, Taiwan offers foreign pharmaceutical companies a wealth of good opportunities.

Multinational firms account for almost 75% of the pharmaceutical/drug market in Taiwan. Demand for drug products is expanding in areas like oncology, circulatory diseases and diabetes. Self-care and biologic products are also likely growth sectors in the near future.

A small number of large pharmaceutical distributors handle approximately 50% of drug products sold in Taiwan. The rest of the market is split between more than 5,000 local Taiwanese drug distributors. For many of their purchases, hospitals tend to use local drug distributors or agents with whom they have an established relationship. Therefore, it is crucial to choose distributors that maintain strong relationships with many of the larger Taiwanese healthcare facilities.

A government-controlled universal healthcare system has operated in Thailand since 2002, which now provides almost all Thais with at least limited healthcare. The government has been pushing to upgrade and expand healthcare facilities as part of a continued effort to make Thailand an Asian medical hub and key destination for medical tourism. As Thai consumers grow increasingly wealthy, Thailand offers an attractive healthcare market for foreign pharmaceutical companies. The drug market in Thailand is dominated by imports, especially at the higher end.

Distribution in Thailand is relatively fragmented, and a distributor’s relationships with buyers are very important. To effectively cover the entire country, foreign drug firms may need to consider selecting several distributors, each responsible for a separate geographic area.

Because of the difficulties involved in directly selling their pharmaceutical products in Vietnam, most foreign drug companies choose to work with Vietnamese distributors to access the country’s growing pharma market. Imports comprise about 55% of the market and are mostly high value drugs for cancer, anesthetics, etc. Domestic firms concentrate on lower end generic production. Vietnamese doctors and patients that have money prefer imported drugs, believing that locally produced pharmaceuticals are of a lower quality.

There are approximately 2,500 pharmaceutical distributor companies in Vietnam servicing almost 40,000 medicine retailers. The network for pharmaceutical distribution is complex, with many layers of intermediaries. This makes it important to choose a Vietnamese distributor partner that has good connections with the Ministry of Health and large private and public hospitals, as well as other sub-distributors.