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ublicly listed pharmaceutical company PT Kimia Farma (KAEF) is seeking to finalize a distribution deal with a partner company in Vietnam to boost its revenue from export sales.

“We have reached a deal with Vietnamese firm Pharbaco Joint Stock Company, which is 70 percent owned by the government and 30 percent by the public. We haven’t signed any MoU, it is still in assessment stages,” Kimia Farma president director Syamsul Arifin said.

According to its website, Pharbaco was formerly known as Central pharmaceutical enterprise NoI and was established in 1954. Pharbaco’s businesses include production, trade, import and export of medical material, pharmaceutical, chemistry, cosmetic, food and medical equipment.

The company also provides consultation on scientific service and technology transfer in the pharmaceutical field, building and managing industrial and civil constructions as well as providing consultancy on domestic and foreign investment.

“We hope to have signed an agreement and registered our partnership with local authorities within the year,” Syamsul added.

The partnership will likely take the form of distribution activities.

“Several of Kimia Farma’s products will be produced and distributed there. In turn, their products will be distributed in Indonesia.

Kimia Farma will appoint a country manager in Vietnam to manage the marketing matters,” Syamsul said.

According to Syamsul, the Vietnamese company utilizes advanced technology to produce various medicines, including Malaria drugs and specific infusion fluids.

“When the partnership shows progress, we will consider establishing a production base in Vietnam, which will cover other countries, such as Cambodia, Laos and Myanmar,” Syamsul said.

Most Kimia Farma products are currently distributed to the domestic market.

According to its 2011 financial report, Kimia Farma’s export sales accounted for 14 percent of its total sales of Rp 3.48 trillion (US$379.3 million).

“Most of our company’s exported products are raw material products, which usually are not effected by various barriers. Medicines are regulated commodities, and most countries implement tight import regulations on such products. Expansion into other countries will be difficult without cooperation with a local partner,” Syamsul said.

Kimia Farma is targeting to reap Rp 4 trillion in net sales this year, in addition to net profits of Rp 220 billion, which would constitute an increase of about 28 percent from Rp 220 billion last year.

Syamsul recently said that exports would account for about 10 percent of its total sales.

Shares in Kimia Farma closed at Rp 540 a piece on Wednesday, up 1.88 percent from 530 a day earlier.