Location: In the area of 20,000 m² belonged to Nghe An Medicine stock company at No 68 Nguyen Sy Sach street (to the south), Vinh city – Nghe An. The location is very convenient thanks to natural condition, climate, hydro graphic and geologic - geographic conditions, present land condition, water source, electricity source and people’s livelihood condition.

Products:

Products are divided into 5 groups:

• Group of high-grade antibiotic pill in the form of table: Erythromycin, Prednisolon, Ampicilline, Tetracycline, Cloroxit, Penicillin, Sturgeon, Lincocin, and Cloroxit. Capacity: 200 million pills / year
• Tonic group (pills in the table form or capsules in table form): Becberin, mint, Ginseng, deer’s young horn, Vitamin B1, B6, B2, Vitamin B3, Vitamin C. Capacity: 350 million pills/year
• Group of oriental medicament in the tablets: Core of lotus, Becberin, mint... Capacity: 150 million pill/year
• Other normal medicine of the table’s form: Nabica, Iron II oxalat, Paracetamon, Anagine, Glucose, various green rice... Capacity: 300 million pill/year
• Water-medicine group: consisting of reinforced tonic wine, syrup…50.000 litres/ year.

Expected capacity for the project: 1 billion pills / year

Material source: The amount of chemical medicine material for each type of medicine is different. For instant, group 1 needs 0.25 gram for 1 pill, group 2 needs 0.02 gram, group 3 needs 0.15 gram, group 4 needs 0.1 gram…It is estimated that 55-60 tonnes of chemical medicine materials will be needed to ensure the planned operation of the project. These chemical medicine materials now are available in Vietnam market, and will be able to supply adequately for the project.

Expected investment capital: 4.5 million USD

Investment form: Joint venture

Market for products of project:

According to documents of Nghe An medical department, in 2000 the whole province spent around VND 70-72 billion in medicine, and VND 80-82 billion in 2001. The amount of medicine used in Nghe An province increases 13-15% every year. It is estimated that by 2005 Nghe An will spend around VND 100 billion in medicine and health care. The corresponding number for the whole country is about VND 5,100-5,200 billion, in which high-grade medicine or specialized medicine (Vietnam has not be able to produce) account for about 40% (around VND 2,050-2,100 billion).

Of the above VND 3000 billion worth medicine for the whole country, imported medicine account for about 65% (around VND 1,900 billion), the other left (about VND 2,000-2,100 billion) is produced by domestic enterprises. Big medicine producing enterprises in the north such as Nam Dinh, Quang Ninh, Ha Noi, Hai Phong, and in the south such as Ho Chi Minh city, Nha Trang, Dong Nai, Vung Tau have supplied about 85% medicine produced domestically (corresponding to VND 1,650-1,700 billion). The market-share for the project is VND 350-400 billion. The project’s capacity of VND 66-67 billion is very reliable (only taking 18-20% market-share).

Export proportion: Expect to export 40-45% of capacity to some countries in ASEAN about (corresponding to VND 27-30 billion), especially Indochina countries - Laos and Cambodia.

Technology: Requiring of pill compressing technology and capsule covering technology with polyethylene table.

Information about Nghe An counterpart:

• Name of company: Nghe An medicine stock company
• Address for contact: No 68 Nguyen Sy Sach, Vinh city - Nghe An
• Telephone: 038.844815
• Main business filed: producing and trading various types of medicine.

Summarization of the company and investment share in the project:

the company originally was medicine factory under Nghe An medical department, founded in 1967. In 1997, the factory was upgraded with new equipment, the factory also bought some more machines. In 2001 it was transferred into Nghe An medicine stock company. At present there are 130 staff in the company, in which 45 people gain intermediate and high grade of medicine speciality. At present the company is managing an area of 20,000m2, which is a high-value property, at the south of Nguyen Sy Sach Street. The land is ideal for production expansion.