20 years improving Vietnamese health

October 26, 2015 | 07:27
(0) user say
It would only be appropriate to celebrate the Vietnam-US’ diplomatic relations by citing a vivid case study success. The 20-year journey of US-based leading healthcare company Abbott, as it built its presence in Vietnam, fits perfectly. Arriving in Vietnam in 1995, Abbott quickly partnered up with the local nutrition distributor 3A Nutrition to leverage its distribution expertise in a new market for quality science-based nutrition products. 18 years later, this business partnership has blossomed into an acquisition of 3A Nutrition by Abbott, resulting in a strong presence across all 63 cities and provinces in Vietnam. 3A Nutrition’s general director Douglas Kuo talked with VIR’s Hoang Anh about this growing integration.

You’ve seen the engineering of a robust business model that links both the US and Vietnamese working cultures. What would you say are the common characteristics of the two companies?

I’m sure you have heard of the concept of the American Dream. For me, it refers to the ability to fulfill your potential. It stands for optimism about the future. Recent research has shown the existence of a Vietnamese Dream; Vietnam is amongst the most optimistic nations in the world. Vietnamese people believe that tomorrow is going to be even better, as our country continues its development.

I find this exact same sense of opportunity and optimism for the future in Abbott’s philosophy. At Abbott, we believe that people can unlock all that life has to offer through good health; and that healthy people create communities that can achieve more. This is what drives the company to produce the most advanced nutritional and healthcare products so that people at every stage of life stay as healthy as they can.

How would you comment on the integration of Abbott and 3A so far, in terms of it serving as a strong example of business collaboration?

Since Abbott and 3A Nutrition started working together over 18 years ago, we have developed a good understanding of each other’s businesses and cultures. The integration proved to be a great combination for both to continue our growth – leveraging Abbott’s global strength and pioneering science, and merging it with the local talent and a strong understanding of the Vietnamese market brought by 3A. Abbott is a large diversified healthcare company with international quality standards and requirements. In working with Abbott, our systems continue to improve and our employees learn new skills and ways of working.

Furthermore, Vietnam is a priority market for Abbott. There is continual focus and investment from Abbott in Vietnam in order to maintain leadership and deliver reliable, quality products that make life better and improve the health of Vietnamese people.

You said your local employees benefited from becoming part of a US company with a global footprint. Can you elaborate on this?

It is an exciting and smooth transition for all of us at 3A Nutrition, as we learn from Abbott’s excellent operation systems, customer service, and nutrition science and expertise.

3A employees have had an opportunity to be empowered through a number of Abbott management and professional skills development programmes on innovation, strategic thinking, and business excellence.

We also benefit from the extension of Abbott’s global programmes to improve employee health and safety. For example, employees received training focused on mitigating safety risks when operating their motorcycles during their job responsibilities.

From your perspective, what has determined the success of US companies that arrived in Vietnam since the normalisation of relations 20 years ago?

Let me answer this question by using the Abbott example. When Abbott came to Vietnam in 1995, they realised immediately that they needed to grow with a partner with local expertise in distribution who understood the local culture and practices. That was the moment that Abbott and 3A met. The acquisition in 2012 was a logical next step in that approach. I think a good and genuine sensitivity for the local situation and environment is the key. The companies that remain successful are those that continue to adapt and tailor their development in line with the growth of Vietnam’s society and economy. For example, Abbott invests in research and development (R&D) to provide locally-focused products that meet the changing needs of Vietnamese consumers. In March this year, Abbott launched its first nutrition pilot plant in Asia. The state-of-the-art facility functions as Abbott’s second global research and development nutrition hub and is a Good Manufacturing Practice plant. It will allow Abbott’s scientists to “prototype” – or pilot – new products and formulations tailored to the preferences of Asian consumers, take consumer feedback into consideration, and then make adjustments quicker. This allows innovative science-based nutrition products to come to life quickly, speeding up the development and delivery process.

US companies that are truly successful in Vietnam are those that act as committed and responsible citizens. That’s how you gain the respect of your consumers, your employees, and so on. In Vietnam, Abbott has been committed to improving health in Vietnam, not only by bringing forward the best quality and most advanced products, but also through medical education for healthcare professionals and customers. Abbott reaches more than 26,000 healthcare professionals each year to share updates on the latest healthcare solutions and information on clinical nutrition. More than 619,000 patients have also been benefited from our educational activities in partnership with hospitals and healthcare associations every year. It’s really a gift that keeps on giving. Since its first footprint in Vietnam, Abbott, and its foundation, the Abbott Fund, have provided nearly VND230 billion ($10.2 million) in grants and product donations to help people build better lives and stronger communities through partnerships. I am particularly proud of the fact that with the support of 3A, and through our team’s understanding of different geographies and cultures, Abbott was able to widen the reach of its educational programmes focused on mothers and babies, people with diabetes, aging consumers, and even people living with cancer.

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional