Overview of the Situation and Factors Affecting the Competitiveness Improvement of Nam Duoc Joint Stock Company

- Differentiate by payment method: The price for immediate payment must be more favorable than for late payment.

- Differentiate by time: Selling prices can change over time, depending on market prices. This method of differentiation is often applied to seasonal products.

*Product organization and consumption policy

- Select distribution channel system

Enterprises must research the market, select the market and select the distribution channel so that the manufactured products are consumed quickly, reasonably and effectively. The selection of the distribution channel must be based on the technical and economic characteristics of the products to be consumed. At the same time, the selection of the distribution channel is also based on the characteristics of the market to be consumed, the characteristics of the distance to the market, the terrain and transportation system of the market and the consumption capacity of the market. From the analysis of the above characteristics, the enterprise will choose for itself a reasonable distribution channel system with high efficiency.

- Some sales support policies

Advertising policy: Advertising is the art of using media to convey information about a product to consumers. The goal of advertising is to attract customers' attention to the presence of the product in order to provide customers with a clear understanding of the advantages of the product being offered to the market.

Sales promotion: Sales promotion is a method of promotion through which employees of the company go to find customers to sell products. Through sales promotion, it is necessary to clearly state the advantages of the product compared to competing products, learn about the interests and needs of customers to satisfy those needs.

- The art of product consumption

Nowadays, the art of product consumption plays an extremely important role, even deciding the survival of businesses in the market because it affects product competitiveness in the following aspects:

+ Increase the ability to consume goods by attracting customers' attention to the product.

+ Improve the image position of the business in the market.

+ Expand business relations with partners in the market, coordinate with entities in market domination and anti-counterfeiting.

- After-sales service policy

The responsibility of a business for its products does not end after delivery and receipt of payment from the customer because there is a general principle that “whoever produces, he shall provide technical service”. Preparations for technical service before supplying the product to the market will help the business sell more products because the customer feels assured that the product is of guaranteed quality even after the purchase relationship has ended.

Contents of after-sales service include:

+ Commit to take back the product and refund the customer or exchange the product if the product is not as per the original agreement or does not satisfy their needs.

+ Warranty commitment for a certain period of time.

+ Provide installation and technical maintenance services for products with long life.

CHAPTER II: ANALYSIS AND ASSESSMENT OF THE COMPETITIVENESS OF NAM DUOC JOINT STOCK COMPANY.

2.1. Overview of the situation and factors affecting the improvement of competitiveness of Nam Duoc Joint Stock Company

2.1.1. Overview of product market, distribution network and business performance of Nam Duoc Joint Stock Company in the past three years.

*Market

The Vietnamese pharmaceutical market has shown promising growth till 2019 and is forecasted to continue growing from 2021 to 2026. The growth of the Vietnamese pharmaceutical market is driven by factors such as the rising demand for modern medicines to treat chronic diseases, neurological problems, and oncological diseases. In addition, government initiatives to promote technology for drug research and pharmaceutical manufacturing are also supporting the growth of the market. Improved living conditions and people’s focus on lifestyle are also supporting the domestic pharmaceutical industry. Moreover, about 12% of the country’s GDP comes from the healthcare sector. Policies and regulations for the production, commercialization, and application of pharmaceutical products and drugs are also indicative of the growth of the Vietnamese pharmaceutical market over the next 5 years. Based on product type, the market is divided into prescription drugs and non-prescription drugs.

Non-prescription drugs are expected to account for the largest revenue share in the market and dominate the industry in the next 5 years due to their relatively lower costs and easier access to drugs. In addition, these drugs can be purchased without a doctor's approval or prescription. These factors are favorable conditions for Nam Duoc Joint Stock Company to develop and manufacture products more effectively. Many of the company's functional products are famous and chosen by many consumers such as An Phe tablets, Thong Xoang Tan, ... and the new product Livecool effervescent powder helps increase resistance to suit the current epidemic situation. The pharmaceutical industry has great potential for development, but this is an extremely competitive industry. Nam Duoc Joint Stock Company's direct competitors are OPC Pharmaceutical Joint Stock Company, Nam Ha Pharmaceutical Joint Stock Company, Pharmaceutical Joint Stock Company, TRAPHACO Joint Stock Company, Ha Tay Pharmaceutical Joint Stock Company, ... These are competitors with extensive experience, many achievements as well as a fairly solid position in the market. The products of the competitors are diverse, highly effective, suitable for the needs and tastes of customers, some products have similar functions. This makes the company need to be flexible to adapt to the market, thereby creating a competitive advantage. In addition to the above direct competitors, the Company also has a series of larger and smaller competitors and some businesses intending to participate in the industry. For these potential competitors, the company's main advantage is the trust of customers that has long been affirmed in terms of sales policies and customer care services.

Thus, facing fierce competition from many competitors with prestigious brands in the market, the company's products must be of good quality to be chosen and used by the target customer group, and must have a competitive price compared to competitors. On the other hand, sales promotion activities and distribution channels must also be adjusted to ensure effectiveness as well as enhance the company's competitiveness compared to competitors in the market.

*Distribution network

After nearly 20 years of formation and development, Nam Duoc has become one of the large-scale companies in Vietnam in the field of production and distribution of oriental medicine, contributing greatly to the prosperity of the country. The affiliated units of

Nam Duoc has 4 branches and a factory that is always creative and constantly striving to develop the brand further.

Subsidiaries:

- Nam Duoc Company Limited – Lot M13(C4-9), Hoa Xa Industrial Park, Nam Dinh City.

Affiliated units:

- Nam Duoc Joint Stock Company - Southern Branch at U12 Bach Ma Street, Ward 12, District 10, Ho Chi Minh City.

- Nam Duoc Joint Stock Company - Central Branch at No. 76 Xo Viet Nghe Tinh Street, Hoa Cuong Nam Ward, Hai Chau District, Da Nang City.

- Nam Duoc Joint Stock Company - Western Branch at No. 33, Phan Dang Luu Street, Thoi Binh Ward, Ninh Kieu District, Can Tho City

- Nam Duoc Joint Stock Company - North Central Branch at the Apartment Residential Area east of Le Nin Avenue, Hamlet 20, Nghi Phu, Vinh City, Nghe An

Nam Duoc Joint Stock Company has built a product distribution and sales network across the country with a large customer base. With long-term reputation, strong financial capacity, and diverse products, it is the foundation for the company to increasingly expand its market and retain loyal customers. Currently, the company has distributed products in 54 provinces and cities through its branches and pharmacies. In 2020, the company sold to 40,000 partners, which are companies, pharmacies, and drugstores across the country. In addition, the company also distributes its products through e-commerce platforms such as shopee, lazada, .... Regarding distribution policy, Nam Duoc skips a step in the distribution intermediary, which is the agent, to sell directly to each small pharmacy nationwide. This has helped the company closely connect with each pharmacy combined with the application of advanced DMS sales management software, making data transparent and much easier to manage due to the elimination of an intermediary step.

*Production and business performance results

Table 2.1: Production and business performance results 2018-2020

(Unit: million VND)

STT

Target

2018

2019

2020

% 2019 vs 2018

% 2020 vs 2019

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• Qos Assurance Methods for Multimedia Communications zt2i3t4l5ee zt2a3gs zt2a3ge zc2o3n4t5e6n7ts low. The EF PHB requires a sufficiently large number of output ports to provide low delay, low loss, and low jitter. EF PHBs can be implemented if the output port's bandwidth is sufficiently large, combined with small buffer sizes and other network resources dedicated to EF packets, to allow the router's service rate for EF packets on an output port to exceed the arrival rate λ of packets at that port. This means that packets with PHB EF are considered with a pre-allocated amount of output bandwidth and a priority that ensures minimum loss, minimum delay and minimum jitter before being put into operation. PHB EF is suitable for channel simulation, leased line simulation, and real-time services such as voice, video without compromising on high loss, delay and jitter values. Figure 2.10 Example of EF installation Figure 2.10 shows an example of an EF PHB implementation. This is a simple priority queue scheduling technique. At the edges of the DS domain, EF packet traffic is prioritized according to the values ​​agreed upon by the SLA. The EF queue in the figure needs to output packets at a rate higher than the packet arrival rate λ. To provide an EF PHB over an end-to-end DS domain, bandwidth at the output ports of the core routers needs to be allocated in advance to ensure the requirement μ > λ. This can be done by a pre-configured provisioning process. In the figure, EF packets are placed in the priority queue (the upper queue). With such a length, the queue can operate with μ > λ. Since EF was primarily used for real-time services such as voice and video, and since real-time services use UDP instead of TCP, RED is generally not suitable for EF queues because applications using UDP will not respond to random packet drop and RED will strip unnecessary packets. 2.2.4.2 Assured Forwarding (AF) PHB PHB AF is defined by RFC 2597. The purpose of PHB AF is to deliver packets reliably and therefore delay and jitter are considered less important than packet loss. PHB AF is suitable for non-real-time services such as applications using TCP. PHB AF first defines four classes: AF1, AF2, AF3, AF4. For each of these AF classes, packets are then classified into three subclasses with three distinct priority levels. Table 2.8 shows the four AF classes and 12 AF subclasses and the DSCP values ​​for the 12 AF subclasses defined by RFC 2597. RFC 2597 also allows for more than three separate priority levels to be added for internal use. However, these separate priority levels will only have internal significance. PHB Class PHB Subclass Package type DSCP AF4 AF41 Short 100010 AF42 Medium 100100 AF43 High 100110 AF3 AF31 Short 011010 AF32 Medium 011100 AF33 High 011110 AF2 AF21 Short 010010 AF22 Medium 010100 AF23 High 010110 AF1 AF11 Short 001010 AF12 Medium 001100 AF13 High 001110 Table 2.8 AF DSCPs The AF PHB ensures that packets are forwarded with a high probability of delivery to the destination within the bounds of the rate agreed upon in an SLA. If AF traffic at an ingress port exceeds the pre-priority rate, which is considered non-compliant or “out of profile”, the excess packets will not be delivered to the destination with the same probability as the packets belonging to the defined traffic or “in profile” packets. When there is network congestion, the out of profile packets are dropped before the in profile packets are dropped. When service levels are defined using AF classes, different quantity and quality between AF classes can be realized by allocating different amounts of bandwidth and buffer space to the four AF classes. Unlike EF, most AF traffic is non-real-time traffic using TCP, and the RED queue management strategy is an AQM (Adaptive Queue Management) strategy suitable for use in AF PHBs. The four AF PHB layers can be implemented as four separate queues. The output port bandwidth is divided into four AF queues. For each AF queue, packets are marked with three “colors” corresponding to three separate priority levels. In addition to the 32 DSCP 1 groups defined in Table 2.8, 21 DSCPs have been standardized as follows: one for PHB EF, 12 for PHB AF, and 8 for CSCP. There are 11 DSCP 1 groups still available for other standards. 2.2.5.Example of Differentiated Services We will look at an example of the Differentiated Service model and mechanism of operation. The architecture of Differentiated Service consists of two basic sets of functions: Edge functions: include packet classification and traffic conditioning. At the inbound edge of the network, incoming packets are marked. In particular, the DS field in the packet header is set to a certain value. For example, in Figure 2.12, packets sent from H1 to H3 are marked at R1, while packets from H2 to H4 are marked at R2. The labels on the received packets identify the service class to which they belong. Different traffic classes receive different services in the core network. The RFC definition uses the term behavior aggregate rather than the term traffic class. After being marked, a packet can be forwarded immediately into the network, delayed for a period of time before being forwarded, or dropped. We will see that there are many factors that affect how a packet is marked, and whether it is forwarded immediately, delayed, or dropped. Figure 2.12 DiffServ Example Core functionality: When a DS-marked packet arrives at a Diffservcapable router, the packet is forwarded to the next router based on Per-hop behavior is associated with packet classes. Per-hop behavior affects router buffers and the bandwidth shared between competing classes. An important principle of the Differentiated Service architecture is that a router's per-hop behavior is based only on the packet's marking or the class to which it belongs. Therefore, if packets sent from H1 to H3 as shown in the figure receive the same marking as packets from H2 to H4, then the network routers treat the packets exactly the same, regardless of whether the packet originated from H1 or H2. For example, R3 does not distinguish between packets from h1 and H2 when forwarding packets to R4. Therefore, the Differentiated Service architecture avoids the need to maintain router state about separate source-destination pairs, which is important for network scalability. Chapter Conclusion Chapter 2 has presented and clarified two main models of deploying and installing quality of service in IP networks. While the traditional best-effort model has many disadvantages, later models such as IntServ and DiffServ have partly solved the problems that best-effort could not solve. IntServ follows the direction of ensuring quality of service for each separate flow, it is built similar to the circuit switching model with the use of the RSVP resource reservation protocol. IntSer is suitable for services that require fixed bandwidth that is not shared such as VoIP services, multicast TV services. However, IntSer has disadvantages such as using a lot of network resources, low scalability and lack of flexibility. DiffServ was born with the idea of ​​solving the disadvantages of the IntServ model. DiffServ follows the direction of ensuring quality based on the principle of hop-by-hop behavior based on the priority of marked packets. The policy for different types of traffic is decided by the administrator and can be changed according to reality, so it is very flexible. DiffServ makes better use of network resources, avoiding idle bandwidth and processing capacity on routers. In addition, the DifServ model can be deployed on many independent domains, so the ability to expand the network becomes easy. Chapter 3: METHODS TO ENSURE QoS FOR MULTIMEDIA COMMUNICATIONS In packet-switched networks, different packet flows often have to share the transmission medium all the way to the destination station. To ensure the fair and efficient allocation of bandwidth to flows, appropriate serving mechanisms are required at network nodes, especially at gateways or routers, where many different data flows often pass through. The scheduler is responsible for serving packets of the selected flow and deciding which packet will be served next. Here, a flow is understood as a set of packets belonging to the same priority class, or originating from the same source, or having the same source and destination addresses, etc. In normal state when there is no congestion, packets will be sent as soon as they are delivered. In case of congestion, if QoS assurance methods are not applied, prolonged congestion can cause packet drops, affecting service quality. In some cases, congestion is prolonged and widespread in the network, which can easily lead to the network being "frozen", or many packets being dropped, seriously affecting service quality. Therefore, in this chapter, in sections 3.2 and 3.3, we introduce some typical network traffic load monitoring techniques to predict and prevent congestion before it occurs through the measure of dropping (removing) packets early when there are signs of impending congestion. 3.1. DropTail method DropTail is a simple, traditional queue management method based on FIFO mechanism. All incoming packets are placed in the queue, when the queue is full, the later packets are dropped. Due to its simplicity and ease of implementation, DropTail has been used for many years on Internet router systems. However, this algorithm has the following disadvantages: − Cannot avoid the phenomenon of “Lock out”: Occurs when 1 or several traffic streams monopolize the queue, making packets of other connections unable to pass through the router. This phenomenon greatly affects reliable transmission protocols such as TCP. According to the anti-congestion algorithm, when locked out, the TCP connection stream will reduce the window size and reduce the packet transmission speed exponentially. − Can cause Global Synchronization: This is the result of a severe “Lock out” phenomenon. Some neighboring routers have their queues monopolized by a number of connections, causing a series of other TCP connections to be unable to pass through and simultaneously reducing the transmission speed. After those monopolized connections are temporarily suspended, Once the queue is cleared, it takes a considerable amount of time for TCP connections to return to their original speed. − Full Queue phenomenon: Data transmitted on the Internet often has an explosion, packets arriving at the router are often in clusters rather than in turn. Therefore, the operating mechanism of DropTail makes the queue easily full for a long period of time, leading to the average delay time of large packets. To avoid this phenomenon, with DropTail, the only way is to increase the router's buffer, this method is very expensive and ineffective. − No QoS guarantee: With the DropTail mechanism, there is no way to prioritize important packets to be transmitted through the router earlier when all are in the queue. Meanwhile, with multimedia communication, ensuring connection and stable speed is extremely important and the DropTail algorithm cannot satisfy. The problem of choosing the buffer size of the routers in the network is to “absorb” short bursts of traffic without causing too much queuing delay. This is necessary in bursty data transmission. The queue size determines the size of the packet bursts (traffic spikes) that we want to be able to transmit without being dropped at the routers. In IP-based application networks, packet dropping is an important mechanism for indirectly reporting congestion to end stations. A solution that prevents router queues from filling up while reducing the packet drop rate is called dynamic queue management. 3.2. Random elimination method – RED 3.2.1 Overview RED (Random Early Detection of congestion; Random Early Drop) is one of the first AQM algorithms proposed in 1993 by Sally Floyd and Van Jacobson, two scientists at the Lawrence Berkeley Laboratory of the University of California, USA. Due to its outstanding advantages compared to previous queue management algorithms, RED has been widely installed and deployed on the Internet. The most fundamental point of their work is that the most effective place to detect congestion and react to it is at the gateway or router. Source entities (senders) can also do this by estimating end-to-end delay, throughput variability, or the rate of packet retransmissions due to drop. However, the sender and receiver view of a particular connection cannot tell which gateways on the network are congested, and cannot distinguish between propagation delay and queuing delay. Only the gateway has a true view of the state of the queue, the link share of the connections passing through it at any given time, and the quality of service requirements of the traffic flows. The RED gateway monitors the average queue length, which detects early signs of impending congestion (average queue length exceeding a predetermined threshold) and reacts appropriately in one of two ways: − Drop incoming packets with a certain probability, to indirectly inform the source of congestion, the source needs to reduce the transmission rate to keep the queue from filling up, maintaining the ability to absorb incoming traffic spikes. − Mark “congestion” with a certain probability in the ECN field in the header of TCP packets to notify the source (the receiving entity will copy this bit into the acknowledgement packet). Figure 3. 1 RED algorithm The main goal of RED is to avoid congestion by keeping the average queue size within a sufficiently small and stable region, which also means keeping the queuing delay sufficiently small and stable. Achieving this goal also helps: avoid global synchronization, not resist bursty traffic flows (i.e. flows with low average throughput but high volatility), and maintain an upper bound on the average queue size even in the absence of cooperation from transport layer protocols. To achieve the above goals, RED gateways must do the following: − The first is to detect congestion early and react appropriately to keep the average queue size small enough to keep the network operating in the low latency, high throughput region, while still allowing the queue size to fluctuate within a certain range to absorb short-term fluctuations. As discussed above, the gateway is the most appropriate place to detect congestion and is also the most appropriate place to decide which specific connection to report congestion to. − The second thing is to notify the source of congestion. This is done by marking and notifying the source to reduce traffic. Normally the RED gateway will randomly drop packets. However, if congestion If congestion is detected before the queue is full, it should be combined with packet marking to signal congestion. The RED gateway has two options: drop or mark; where marking is done by marking the ECN field of the packet with a certain probability, to signal the source to reduce the traffic entering the network. − An important goal that RED gateways need to achieve is to avoid global synchronization and not to resist traffic flows that have a sudden characteristic. Global synchronization occurs when all connections simultaneously reduce their transmission window size, leading to a severe drop in throughput at the same time. On the other hand, Drop Tail or Random Drop strategies are very sensitive to sudden flows; that is, the gateway queue will often overflow when packets from these flows arrive. To avoid these two phenomena, gateways can use special algorithms to detect congestion and decide which connections will be notified of congestion at the gateway. The RED gateway randomly selects incoming packets to mark; with this method, the probability of marking a packet from a particular connection is proportional to the connection's shared bandwidth at the gateway. − Another goal is to control the average queue size even without cooperation from the source entities. This can be done by dropping packets when the average size exceeds an upper threshold (instead of marking it). This approach is necessary in cases where most connections have transmission times that are less than the round-trip time, or where the source entities are not able to reduce traffic in response to marking or dropping packets (such as UDP flows). 3.2.2 Algorithm This section describes the algorithm for RED gateways. RED gateways calculate the average queue size using a low-pass filter. This average queue size is compared with two thresholds: minth and maxth. When the average queue size is less than the lower threshold, no incoming packets are marked or dropped; when the average queue size is greater than the upper threshold, all incoming packets are dropped. When the average queue size is between minth and maxth, each incoming packet is marked or dropped with a probability pa, where pa is a function of the average queue size avg; the probability of marking or dropping a packet for a particular connection is proportional to the bandwidth share of that connection at the gateway. The general algorithm for a RED gateway is described as follows: [5] For each packet arrival Caculate the average queue size avg If minth ≤ avg < maxth div.maincontent .s1 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 15pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 15pt; } div.maincontent .p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent .s3 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s4 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s5 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s6 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s7 { color: black; font-family:Wingdings; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s8 { color: black; font-family:Arial, sans-serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 15pt; } div.maincontent .s9 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s10 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 9pt; vertical-align: 6pt; } div.maincontent .s11 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 13pt; } div.maincontent .s12 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 10pt; } div.maincontent .s13 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-d

				Absolute	Relative (%)	Absolute	Relative (%)
1	Total assets	259,948	291,690	354,816	31,742	12.2%	63,126	21.6%
2	Net revenue	413,939	489,634	550,393	75,695	18.3%	60,759	12.4%
3	Cost of goods sold	181,471	223,587	254,208	42,116	23.2%	30,621	13.7%
4	Gross profit	232,467	266,047	296,185	33,580	14.4%	30,138	11.3%
5	Revenue from financial services main	1,177	571	701	-606	-51.5%	130	22.7%
6	Financial Contract Cost main	2,200	1,423	260	-777	-35.3%	-1163	-81%
7	Cost of sales	141,870	159,570	159,192	17.7	12.4%	-0.378	-0.23%
8	Management costs business	40,146	48,759	53,765	8,613	21.4%	5.006	10.2%
9	Other income	382	4	17	-378	-99%	13	325%
10	Other costs	559	199	864	-360	-64.4%	665	334.1%
11	Profit from operations business	49,425	56,862	83,668	7,437	15.0%	26,806	47.1%
12	Other profits	-177	-195	-847
13	Profit before tax	49,248	56,667	82,821	7,419	15.1%	26,154	46.2%
14	Profit after corporate income tax	46,431	50,517	71,609	4,176	9.0%	21,092	41.8%
15	Profit margin after tax/net revenue	0.11	0.10	0.13

(Source: Audited consolidated financial statements 2018, 2019, 2020

of Nam Duoc Joint Stock Company.)

Regarding revenue: Net revenue in 2019 reached 489,634 million VND, an increase of 18.3% compared to 2018, net revenue in 2020 reached 550,393 million VND, an increase of 12.4% compared to 2019.

Reason: The outbreak of the epidemic has caused a sudden increase in the demand for pharmaceuticals with immune-boosting drugs. Hospitals and individuals have a need to stock up on drugs to prevent the epidemic. And Nam Duoc Joint Stock Company is one of the companies that benefited from this epidemic. The production of medical equipment and protective gear during the Covid epidemic has contributed to the increase.

significant revenue and profit for the company. The Covid 19 pandemic created challenges but also opened up a significant opportunity, an opportunity for the company to look back at itself, restructure operations, accelerate innovation and modernize machinery and equipment. Nam Duoc took advantage of the opportunity when the pandemic broke out to quickly develop new products to increase resistance, fight bacteria and fight the epidemic, typically the Livecool effervescent product line, which has been chosen by many consumers, achieving a leap in growth in recent times. In addition, the flavor of this product has also been researched and changed by the company, such as lemon flavor, sugar-free melon flavor, ... to increase customer choices to increase sales.

Regarding profit: Profit after tax in 2019 reached 50,517 million VND, an increase of 9% compared to 2018, profit after tax in 2020 reached 71,609 million VND, an increase of 41.8% compared to 2019.

Reason: The Company's after-tax profit in 2020 compared to 2019 increased by 41.8%, 32.8% higher than the Company's after-tax profit in 2019 compared to 2018, which only increased by 9% due to the Company's correct business strategies, helping the revenue in the period of 2019-2020 increase sharply, exceeding the set plan target. In addition, the period from 2019 to now has been difficult due to the epidemic situation, the State has issued support policies, tax reduction for businesses across the country. Specifically: in 2020 and 2021, the National Assembly and the Government have issued many policies to support businesses on taxes such as: Decree No. 41/2020/ND-CP dated April 8, 2020 and Decree No. 52/2021/ND-CP dated April 19, 2021 on extending the deadline for payment of value added tax, income tax. corporate income tax, personal income tax and land rent in 2020; Resolution No. 116/2021/QH14 on reducing 30% of corporate income tax payable in 2020 for enterprises with total revenue in 2020 not exceeding VND 200 billion; Resolution No. 94/2019/QH14 on deferring tax arrears, canceling late payment fines and late payment fees for taxpayers who are no longer able to pay to the State budget.

In 2020, the Covid 19 pandemic negatively impacted most businesses around the world and in Vietnam. The closure of many countries, along with disruptions in logistics operations, led to a breakdown in the supply chain of many businesses. In that context, Nam Duoc has made efforts to maintain normal production activities. Many solutions have been implemented such as expanding the supplier list, forecasting and long-term planning, flexibility in production organization, etc. As a result, the company's production and business activities remained smooth and the company exceeded the set plan.

In general, in recent years from 2018 to 2020, the company has operated and developed stably. 2019 and 2020 were difficult years due to the Covid pandemic. However, the company was still able to overcome difficulties with the right strategies and plans and always achieved business results exceeding the previously set targets. This shows that the company's business is very effective.

2.1.2. Factors affecting the improvement of competitiveness of Nam Duoc Joint Stock Company

*Influence of external factors Economic environment:

This is an important and decisive factor. Economic factors need to be researched, analyzed and forecasted. Over the past 3 years, the company's revenue has increased every year and always exceeded the planned target. In the economic environment, businesses are affected by factors such as: gross domestic product (GDP), inflation, exchange rates and interest rates, wages and income. GDP growth rate in 2019 reached about 7.02%, inflation reached 2.79%; Due to the severe impact of the Covid-19 epidemic, in 2020, Vietnam's GDP growth rate increased by 2.91% compared to 2019 and inflation increased by 2.31% compared to 2019, but this is also the lowest growth rate in the period 2011-2020. However, for a developing country like Vietnam with an inflation rate of less than 10%, this is a good sign for the Vietnamese economy and for businesses in Vietnam because it helps stimulate consumption, borrowing and investment, .... In general, fluctuations in economic factors can create opportunities and challenges for businesses.

Political and legal environment :

The economic context in Vietnam is more stable and solid than a few years ago. In addition, the government plays an important role in regulating the macro economy of the socialist-oriented market economy through economic and financial policies, etc. The policies, guidelines and directions of the state always have a strong and profound influence on the operations of enterprises. This is an advantage for Nam Duoc Joint Stock Company to develop its business activities on the basis of strict compliance with the legal policies of the state, and at the same time, it is also an opportunity for the company to expand and develop further in the future.

Socio-cultural environment:

Vietnam is currently in a period of development, population is increasing, people's quality of life is improving, income is increasing; weather is changing,

Environmental pollution is the main cause of many diseases in all ages, so the need for health care is also increasingly concerned. That is the main customer group and an opportunity for Nam Duoc Joint Stock Company to develop, bring health care products to the market and dominate the market. To improve competitiveness, Nam Duoc Joint Stock Company must have specific distribution business strategies, the choice of business products/services depends on many factors such as market demand, customer tastes. Each country and territory has its own cultural values ​​and social factors, and these factors are the characteristics of consumers in those areas. Therefore, Nam Duoc needs to carefully research cultural and social factors to understand and satisfy the needs of the market as well as customers. This is an important factor contributing to increasing the competitiveness of the company in the area where it distributes.

Competitors (internal industry competition):

Business always has competitors, the company must always implement flexible and constantly changing policies compared to competitors in the market in the conditions of fierce competition between companies in terms of price, product differentiation or product innovation between companies that have the same products and exist in the same market. Currently, the company is facing major competitors such as: OPC Pharmaceutical Joint Stock Company, Nam Ha Pharmaceutical Joint Stock Company, Pharmaceutical Joint Stock Company, TRAPHACO Joint Stock Company, Ha Tay Pharmaceutical Joint Stock Company ... However, Nam Duoc has been creating a difference for competitors with the advantage of low cost and improving the quality and diversity of its products.

Client:

Customers are the lifeblood of the business, bringing economic benefits to the business. Most of Nam Duoc's customers are large and small pharmacies, who act as intermediaries in distributing health protection functional products. Customers increasingly demand high quality products to satisfy their needs. With the pharmaceutical market having more and more brands and competitors joining, customers have more choices. They compare very carefully to find the advantages and disadvantages of each type of product from different companies, thereby making the most appropriate decision. Therefore, Nam Duoc Joint Stock Company always strives to improve its business activities, serve customers to satisfy many different customer groups, and attract more customers.