Abbott-3A prove a good fit after one year acquisition

Abbott Vietnam general manager Jullian Caillet and 3A director Douglas Kuo spoke about the firm’s development prospects with VIR’s Nguyen Thuy.

What have been the challenges that Abbott and 3A encountered after the acquisition, in terms of market competition and internal challenges?

Caillet: Because we’ve known each other for over 18 years, we entered into this acquisition as long-time partners, and we’ve been very pleased after a great first year together.

In terms of competition, the market has its own challenges; however, as partners on the journey towards sustainable development, 3A and Abbott look to the future with optimism and a sense of opportunity. Through our investments in Vietnam, we have, and will continue to demonstrate that we are here for the long run.

With a fast-growing economy and an increasing middle class, Vietnam has presented itself as an example of sustained stable business growth, strong local talent and significant opportunities. It is important for us to build the right infrastructure, and position ourselves by setting up the right alliances. 

Abbott’s presence in emerging markets is among the largest of any diversified healthcare company. Our move last year to welcome long-time partner 3A to the Abbott family demonstrates our strategy to expand and invest in key markets like Vietnam.

What will Abbott do to further capitalise on the advantages provided by this acquisition?

Caillet: To succeed in a fast-moving country like Vietnam, it is necessary to continue to invest and to bring forward innovations. Abbott’s acquisition of long-time partner 3A proved a great combination for both of us. It leverages the leading scientific and cutting-edge innovation of global healthcare company Abbott, while combining it with local talent and market expertise brought by 3A.

We will continue to execute on our business strategy and leverage the successful partnership we have. We will also continue to bring new products and solutions to Vietnam to meet today’s healthcare challenges, using the most advanced science and a strong understanding of local needs. 

In short, we will continue to do what we’ve been doing successfully with 3A for the last 18 years – introducing innovative products tailored to the needs of Vietnamese consumers, and expanding our commitment to partnerships focused on advancing information and education on clinical nutrition for healthcare professionals across the country.

It’s a journey, we’re not here just for one day; we’re here for the long run.

Do you have any projection on the growth of Vietnam’s dairy market in the coming years?

Caillet: With significant GDP growth, and a rapidly growing population - particularly the middle class - Vietnam provides a great environment for business growth and an opportunity to address unmet medical needs. Today, 70 percent of Abbott’s global revenues come from markets outside of the US. Vietnam is a priority market for the company, it’s very important that we continue to invest in not only our local business presence and but also our citizenship efforts in the community.

In Vietnam, Abbott and its foundation, the Abbott Fund, have provided more than VND190 billion, or $9 million, in grants and product donations to address critical health issues through partnerships focused on improving nutrition, training health care staff, strengthening health systems, and expanding community education.

Abbott has 125 year heritage, how has the acquisition affected the entrepreneurial culture of 3A?          

Kuo: Anytime you’re involved in a merger or acquisition, culture is an important concern; but since Abbott and 3A worked together for 18 years, we had a good understanding of each other’s businesses and cultures. Since coming together last year, our partnership has continued to grow - leveraging the global strength and pioneering science of Abbott, and joining it with the local talent and strong understanding of the Vietnamese market brought by 3A. We have also been working together to build shared values that incorporate and amplify the unique values of both Abbott and 3A.

In the coming years, what is Abbott and 3A’s strategy to expand the distribution network to sustain the business growth?               

Kuo: Vietnam continues to be a priority emerging market, and therefore Abbott will continue to invest in new products and technologies that demonstrate the most advanced science, and are also based on a deep understanding of local needs. Our geographical presence is critical to providing better local support in the provinces, and ensuring local consumers have easier access to our advanced nutritional products. Development of our network of employees across the country is a key part of our strategy to sustain growth and maintain a market leadership position.