Combining traditional medicine with advanced technology and a sustainable growth strategy, Traphaco has turned Vietnamese medicinal herbs into a prestigious pharmaceutical brand that has steadily secured an international market foothold.

Traphaco's artichoke growing area in Sapa, Lao Cai, complies with GACP-WHO standards. Photo: TRAPHACO

On November 28, 1972 during the American war, a small pharmaceutical production team under the Railway Medical Department was established in Hanoi. Its mission was to compound medicines, manufacture serum and produce intravenous fluids to treat wounded soldiers. From 15 staff members, the unit has grown into Traphaco Joint Stock Company, an enterprise honored as a Vietnam National Brand and the only domestic pharmaceutical representative joining Forbes Vietnam's Top 25 Leading Consumer Brands in 2023.

Traphaco CEO Dao Thuy Ha (in purple) visits the company’s morning glory cultivation area in Thanh Thuy, Phu Tho. Photo: TRAPHACO

Traphaco agricultural specialists guide farmers in Ninh Binh Province on growing Dinh lang (Polyscias fruticosa) according to GACP-WHO standards. Photo: TRAPHACO

What defines Traphaco's identity is not just its growth in size, but its determination to develop Vietnamese medicinal herbs. At a time when the domestic market was flooded with imported pharmaceuticals, the company chose to unlock the value of traditional medicine, combining it with advanced technology to produce quality herbal remedies. Products like hoat huyet duong nao (brain circulatory supplements) and Boganic (liver health supplements) have become popular names, winning the trust of generations of Vietnamese consumers.

Traphaco has also chosen a green growth path. In the late 2000s, it launched GreenPlan, a project promoting collaboration among the state, scientists, businesses and farmers to build medicinal herb-growing zones that meet GACP-WHO standards (the World Health Organization guidelines on Good Agricultural and Collection Practices for medicinal plants). To date, Traphaco has developed over 36,300ha of standardcompliant material growing zones that allow it to have premium input supply.

The company owns four large plants with GACP-WHO certified. Photo: TRAPHACO

 

While creating a sustainable supply, this model has significantly improved local livelihoods. In Lao Cai Province, many ethnic minority households have earned an income from growing medicinal plants for Traphaco’s projects three to five times that from traditional farming. This initiative has generated stable jobs, contributing to sustainable poverty reduction in the growing zones.

Traphaco’s efforts made it the first Vietnamese enterprise to join the Union for Ethical BioTrade (UEBT) and constantly ranked among the Top 10 Sustainable Businesses in Vietnam. It also won the Asia Corporate Excellence & Sustainability (ACES) Award in 2022 and the UN Women WEPs Awards in the "Marketplace Gender Equality" category in 2024, reaffirming its commitment to sustainable development economically, environmentally and socially.

These factory standards also help expand strategic partnerships with South Korea's Daewoong Pharmaceutical Group through technology transfer programs and new product development. Photo: TRAPHACO

CEO Dao Thuy Ha emphasized that Traphaco’s compliance with international standards is not about chasing short-term market trends, but a long-term strategy. "As compared to many businesses which may find it hard to comply when regulations change, Traphaco holds an advantage as we did right from the very beginning."

The company’s strategy now focuses on leveraging Vietnamese medicinal plants as the foundation while combining traditional medicine with modern technology and governance by international standards. "Our sustainability stems from the company’s core mission of making remedies to save lives," Ha said. "And at every stage of this journey, we always lead with a pioneering spirit, continuous innovation and strict compliance with standards."

Traphaco's artichoke growing area in Sa Pa meets the Ministry of Health's GACP-WHO standards. Photo: TRAPHACO

From a wartime medical compounding unit to a leading pharmaceutical brand, Traphaco proves that Vietnamese medicinal plants can absolutely carve out a prominent place on the global stage when backed by science, quality and social responsibility./.

Prestigious awards presented to Traphaco. Photo: TRAPHACO

 

 

Traphaco has established a presence in Cambodia, Myanmar, Belgium, and Ukraine - markets paving the way for a long-term journey ahead. Photo: TRAPHACO

 

 

Some typical products of the company. Photo: TRAPHACO

 

Story: Vy Thao    Photos: Traphaco