Samil Pharmaceutical headquarters on Hyoryeong-ro, Seocho-gu, Seoul. — Courtesy of Samil Pharmaceutical

SEOUL — Samil Pharmaceutical of the Republic of Korea (RoK) is stepping up its manufacturing expansion in Việt Nam as the company seeks to cut production costs and unlock new growth momentum amid a broader overseas expansion strategy.

The move also coincides with efforts by Chairman Heo Seung Beom to consolidate the company’s third-generation leadership transition through increased share ownership.

Established in 1947, the company is known for its children’s fever reducer Brupen, alongside other pharmaceutical and healthcare products such as Libact, Foributin and Monoprost.

The company is seeking sales growth by turning to overseas production. In 2022, it completed construction of a contract development and manufacturing organisation (CDMO) plant in Việt Nam dedicated to eye-drop products. The facility spans approximately 24,800 sq.m and is capable of producing up to 330 million eye drops annually.

Samil Pharmaceutical is looking to capitalise on Việt Nam’s competitive labour costs to secure price competitiveness. However, its Việt Nam plant has not yet entered full commercial operation as it is still awaiting Good Manufacturing Practice (GMP) approvals from key export markets.

After securing GMP certification from Vietnamese authorities in 2024, the company is now pursuing approval from the RoK’s Ministry of Food and Drug Safety, which it expects to obtain in the second half of this year.

According to the company, the approval process could be completed within two to three months, paving the way for full-scale commercial operations at the Việt Nam facility. —VNA/VNS