Dongwha Pharm said Friday it has signed an agreement to acquire a 51 percent stake in Trung Son Pharma, a Vietnamese pharmacy chain operator, to enter the Southeast Asian pharmaceutical and beauty market in earnest.

Established in 1997, Trung Son is a pharmacy chain operator operating more than 140 pharmacies in the southern region of Vietnam and generated sales of about 74 billion won ($56.9 million) in 2022.

The Vietnamese company sells ethical (ETC) and over-the-counter (OTC) drugs and products in the health and beauty category, including health functional foods, cosmetics, and medical devices.

With more than 1,000 pharmacists and professional customer service, Trung Son has achieved an average annual sales growth of 46 percent between 2019 and 2022.

The number of its stores also increased from 23 in 2018 to more than 140 in 2022. The Vietnamese company plans to expand its market share by working closely with Donghwa to expand the number of stores to about 460 by 2026.

Donghwa plans to enter the Vietnamese market with over-the-counter medicines, including Whal Myung Su (a carbonated herbs drink to help with digestion), Each Toothpaste, and Pancold (cold medicine).

In addition to OTC medicines, the company said it would expand the sale of healthy functional foods and cosmetic product lines to meet the needs of the Vietnamese market, where sales of vitamins, red ginseng, and K-beauty products have surged.

"The acquisition of a Vietnamese pharmacy chain is significant because it provides a bridgehead for future expansion into the Southeast Asian pharmaceutical and beauty markets by entering the rapidly growing Vietnamese pharmaceutical market," a Donghwa official said. "Based on our know-how as Korea's oldest pharmaceutical company, we will introduce various medicines, health functional foods, and cosmetics to the Southeast Asian pharmaceutical and beauty markets."