DHG Pharma's “tripod” strategy

Furthermore, the company is well-known for its clear strategic orientation, modern tools and

management methods.

With the motto, “For a more beautiful and healthier life”, DHG Pharma has always provided high quality products and services while striving for stable values according to the opinion of senior management board.

In the year of 2010, DHG has created a remarkable and effective “tripod strategy” with three focal points: Shareholder - Customer - Employee.

Shareholder – Investor

The current and future owners play an important role in dictating the strategies of DHG. In order to attract long-term investment sources and maintain shares at their real values, DHG has to outline a target that meets the expectations of shareholders and investors based on the stable development while taking responsibility for society at large, the environment and the company’s employees.

The company has always complied with its gold rule: “Open-minded, Obvious, Sufficient and Timely”. That’s why DHG set up the Investor Relationship Department to create a convenient channel for the company and its owners to exchange their ideas more directly.

DHG’s efforts at developing relations with investors and shareholders have been acknowledged as a two-time winner of the Special Award – the highest honour at Dau Tu Chung Khoan newspaper’s Annual Report Awards, which was granted to DHG in 2008 and 2009 for its pitch perfect Annual Report. Selected from a field of 540 companies that participated in the contest, DHG’s 2009 Annual Report was highly appreciated by the award committee for its transparent reporting, sufficient depth of information and professional design.

Customers - Consumers

Besides taking care of clients, visiting regular clients or holding special tours and meetings to introduce its products and services, DHG also attracts regular customers to its discussions on company development strategies in Dalat, Hanoi and elsewhere.

The strategies on DHG’s products and market researches are discussed in detail to ensure the most feasible plan for products. Moreover, the company has timely methods to help its customers overcome their financial problems when meeting economic crises or natural disasters or other hindrances. The reason is that the difficulties of customers also effects DHG; their requirements also create DHG’s development strategy in the future.

Employees

Besides a regular income, DHG often offers employees extra gifts and holds regular cultural, art and sporting activities to encourage their work. Especially, employees of DHG also enjoy a unique feeling of participating in special activities held for their parents and families. The sense of responsibility, trust and pride employees have in their company, helps them to create many more breakthroughs in production and business.

In some cases, our employees are shareholders, customers and consumers of our products. Our customers are sometimes our shareholders and also our excellent employers. Shareholders and investors are also our customers, who believe in and support DHG’s products. The double effect, in fact, is created from the three legs of the tripod, a pull-and push strategy rotating and circulating to lift the company to a higher place.

In the first nine months of 2010, DHG gained a turnover of VND1.372 trillion and VND280 billion in profit before tax, completing 72 per cent of the total revenue and 90 per cent of profit planned for 2010. It’s believed that the plan of gaining VND1.92 trillion in turnover and VND310 billion in profit will be achieved thanks to the company’s effective strategies, most especially the “Tripod”.