Vinphaco and FPT successfully go live with a comprehensive digital enterprise management platform
Recently, Vĩnh Phúc Pharmaceutical Joint Stock Company (Vinphaco) and FPT Corporation officially launched the SAP S/4HANA Cloud Private Edition system, along with ‘Made by FPT’ solutions. The project was implemented in just over six months, aiming to optimize business processes and operations, achieve professionalism in line with international standards, enhance centralized data management capabilities, and pave the way for Vinphaco’s comprehensive digital transformation toward becoming a Pharmaceutical 4.0 enterprise.
Representatives of the organizations jointly launch the system for Vinphaco’s comprehensive management system.
The digital transformation project in Vinphaco’s management operations commences from April 2024, with the support of FPT IS—a member company of FPT Corporation, a pioneer in providing information technology solutions and digital transformation services, and a Gold Partner of SAP in Vietnam.
Established in 1959, Vinphaco has a long-standing history and has made significant contributions to Vietnam’s pharmaceutical industry, from the wartime period to the present. Over 65 years of development, the rapid expansion of Vinphaco’s production and operations has necessitated the need for enhancing the enterprise management system from the old ERP system implemented in 2012 to a new and superior system.
Over a period of more than six months, FPT has implemented effective core modules of the internationally standardized SAP S/4HANA Cloud Private Edition system for the pharmaceutical industry, along with Made by FPT solutions integration, creating a sustainable and comprehensive management platform that allows real-time data-driven management. Specifically, FPT and Vinphaco implemented the ERP system with the following modules: MM – Materials Management, PP – Production Planning, QM – Quality Management, FICO – Financial Accounting and Controlling, SD – Sales and Distribution. Simultaneously, FPT deployed the FPT Mobile Apps solution, including three applications (available on iOS & Android) for three user groups: pharmaceutical sales representatives, logistics staff, and customers, along with the FPT.eInvoice solution integrated with e-Banking, accelerating operations and business processes and enhancing partners and customers experience. As of November 4, the entire management system at Vinphaco has transitioned to the new system and has been operating stably, delivering positive initial results.
The newly established ERP system – SAP S/4HANA Cloud Private Edition has been successfully implemented by Vinphaco
Vinphaco is one of Vietnam’s leading pharmaceutical manufacturers, specializing in the production of freeze-dried injectable drugs, solution injectables, tablets, and health supplements in compliance with GMP-WHO standards. Marking its 65-year milestone of establishment and development, Vinphaco recently reported total business revenue of 660 billion VND for the first 10 months of 2024, an 8% increase compared to the same period last year. The company has been honored twice as a Vietnam National Brand for its four core injectable drug groups (in 2024 and 2022), received the “Vietnam Pharmaceutical Star 2024” award from the Ministry of Health, and was awarded the Government Emulation Flag in 2023 for outstanding achievements. Vinphaco is also expanding its export market, with contracts from 20 countries worldwide, investing in new production lines and advanced technologies. Recently, the company completed the construction of a new manufacturing facility, aiming to become the largest freeze-dried injectable drug production plant in Vietnam.
As a leading pharmaceutical manufacturer in Vietnam with the highest injectable drug output in the market, Vinphaco adheres to strict production and management standards. Consequently, the ERP system implementation project by FPT must also follow the highest international standard processes, ensuring project quality across both the software and operational user levels.
Mr. Nguyen Duc Trung – Deputy Director of the Department of Enterprise Development, Ministry of Planning and Investment – Director of the Project on Improving Private Sector Competitiveness in Vietnam (IPSC) presents his speech at the event
At the event, Mr. Nguyễn Đức Trung, Deputy Director of the Department of Enterprise Development, Ministry of Planning and Investment – Director of the Project on Improving Private Sector Competitiveness in Vietnam (IPSC) shared that Vinphaco is one of the exemplary enterprises in Vietnam selected by the Agency and IPSC to receive support in implementing the SAP ERP platform. Mr. Trung expressed his admiration for Vinphaco, noting that, in addition to its specialized field of injectable pharmaceuticals, which significantly contributes to societal development, the company demonstrates strong core competencies, a clear vision for digital transformation, and a firm commitment to its goals. “I firmly believe that the new management platform will enable Vinphaco to continue its robust growth, not only domestically but also internationally. This project serves as an inspiration and a model example of the implementation and value of ERP systems for SMEs with strong growth trajectories, such as Vinphaco,” Mr. Trung remarked.
Ms. Do Thi Thu Huong – Deputy General Director of Vinphaco presents a report on the project implementation results and expresses her insights at the event.
Ms. Do Thi Thu Huong – Deputy General Director of Vinphaco emphasized: “The successful operation of the SAP S/4HANA ERP system at Vinphaco promises to deliver significant improvements in management and operations, while enhancing the company’s competitiveness on the market, and reinforces Vinphaco’s position as a leading manufacturer of high-quality pharmaceuticals in Vietnam. We believe the new management platform will enable Vinphaco to shorten decision-making times, optimize resources, improve operational quality, and reduce operating costs. Moreover, it will allow us to connect with customers more quickly and effectively, expand our market with ease, and create greater value for our customers, partners, and the community.”
Mr. Nguyen Hoang Minh, Chief Executive Officer of FPT IS, FPT Corporation, delivered a speech at the event.
“The pharmaceutical industry in Vietnam is growing rapidly and is exposed to limitless opportunities. However, domestic pharmaceutical enterprises have yet to fully unlock their potential, remaining heavily reliant on foreign markets and slow in adopting digital transformation. With the national strategy, the Government aims to reduce dependency on imports and focus on modernization to ensure medical security and elevate Vietnam’s pharmaceutical sector to be comparable to that of advanced countries globally. Vinphaco’s decision to undergo digital transformation reflects the strong determination of a company with 65 years of development history. The application of technology will help Vinphaco eliminate ‘blind spots’ in management through real-time data, enabling a breakthrough in growth to not only strengthen its domestic presence but also rapidly expand internationally. The successful implementation of Vinphaco’s digital transformation platform will serve as an inspiration and a model for other companies in the industry, driving continuous development and innovation in Vietnam’s pharmaceutical sector,” expressed Mr. Nguyen Hoang Minh, Chief Executive Officer of FPT IS, FPT Corporation.
Mr. Nguyen Hong Viet, Managing Director of SAP Vietnam, expresses his admiration for the impressive results achieved by Vinphaco and FPT in implementing the project within such a short timeframe.
At the ceremony, Mr. Nguyen Hong Viet, Managing Director of SAP Vietnam, expresses his admiration for the determination, seriousness, and teamwork displayed by the teams from both sides during the implementation of the SAP S/4HANA Cloud Private Edition system within the tight timeline of just over six months. He also encourages Vinphaco to truly transform the system into a tool that serves its people, and enhances collaboration across departments. According to Mr. Viet, when departments clearly understand the company’s priorities and execute real-time processes with aligned objectives, they will work more effectively, sharing a unified rhythm and breath with the enterprise.
Until now, FPT has partnered with numerous Vietnamese enterprises to successfully implement ERP projects. Notable achievements include streamlining Coteccons’ enterprise-wide processes and operations in just 100 days, pioneering digital transformation in the agriculture sector with Tân Long, digitizing over 200 standardized processes to solve labor efficiency challenges for Boston Pharma, and elevating operational management to accelerate development toward green transportation goals with Dat Bike.
