Pharmaceutical Factory No. 3: A pillar of development for Laos over 50 years
This story marks the 70th anniversary of the establishment of the Lao People’s Revolutionary Party, the 50th anniversary of the founding of the Lao PDR, and the 105th birthday of President Kaysone Phomvihane this year.

State Enterprise Pharmaceutical Factory No. 3 has played a vital role in the development of the Lao People’s Democratic Republic (Lao PDR) through its medical production efforts. Initially reliant on support from friendly nations and international organisations, the factory has transformed into a major producer of various medical products for the country.

Dr Lahounh Chanthabout, Managing Director of State Enterprise Pharmaceutical Factory No. 3.

Dr Lahounh Chanthabout, Managing Director of Factory No. 3, shared with the Vientiane Times during the celebration of the 50th anniversary of the Lao PDR that the factory has significantly contributed to national development and achieved success under the Party’s guidance.
Construction of the factory began in 1985, and it commenced operations in 1987, following the resolutions of the 4th Congress of the Lao People’s Revolutionary Party aimed at transforming pharmaceutical production into a market-driven sector.
Dr Lahounh explained, “Before 1987, our country largely relied on support from friendly nations and international organisations for medical supplies. At our factory’s inception, we faced challenges in establishing our products in the market, as consumers were unfamiliar with us, and pharmacies predominantly sold international brands and herbal remedies.”
Despite these challenges, Dr Lahounh noted that the factory was determined to succeed. In its first year, it produced Ampicilline (250 mg), which quickly gained acceptance in the domestic market due to its similarity to Russian products, marking the beginning of the factory’s recognition.
From 1988 to 1990, production expanded to include Vitamin B6 and B12, intravenous drugs, and medications for stomach ailments, all of which were well received by the public. The factory also participated in exhibitions at the That Luang Festival, further enhancing its visibility in the market.
Between 1990 and 1994, the factory’s reputation grew not only domestically but also internationally, receiving orders from Vietnam for its medical products.
“After transitioning into a market-oriented approach under Party guidance, we have significantly increased both the quality and quantity of our medical products—growing fivefold by 2024 compared to our output in 1987,” Dr Lahounh said.
The range expanded from 35 items in 1987 to 160 items by 2024, with herbal products increasing fourfold to 12 items.

State Enterprise Pharmaceutical Factory No. 3 is one of the biggest pharmaceutical factories in Laos.

The customer service store is located at the factory on Thadeua Road.

Production capabilities have also improved dramatically: intravenous infusion production increased by 14 times (1.5 million bottles per year), injectable drug production by 10 times (6.5 million tubes per year), and pill production by six times (over 100 million pills per year). The factory has also diversified its product offerings to attract consumers.

Tea (Decholest) is one of the many products made at the factory, and helps protect against high cholesterol and glycemia.

Staffing levels have risen from 27 to over 140 employees, reflecting the factory’s growth.
Dr Lahounh said that during the COVID-19 pandemic, the factory was authorised to produce Molnupiravir for COVID-19 treatment in Laos and also manufactured hand sanitiser.
As Pharmaceutical Factory No. 3 celebrates its pivotal role in Laos’ healthcare sector over the past 50 years, it stands as a testament to resilience, innovation, and commitment to national development.

By Panyasith Thammavongsa
 (Latest Update February 4, 2025)