Advancing pharmaceutical sector towards eco-friendly and cutting-edge practices
Vietnam's pharmaceutical industry is making strides in the global market, presenting opportunities for investment in innovative drug production. The country has produced 15 types of vaccines, with 10 of them being supplied to the national expanded immunisation programme.
However, the industry faces challenges, particularly in terms of competitiveness. Many domestic facilities focus on simple dosage forms and have a low investment in research and development. This has resulted in a lack of high-technology production.
The health sector aims to address these issues and improve the capacity of the vaccine management system. The strategy is to make Vietnam a regional hub for high-value pharmaceutical production.
To achieve this, the healthcare sector will focus on reviewing and perfecting the legal framework to create open and transparent conditions for investment. The Drug Administration of Vietnam (DAV), a decentralized body under the Ministry of Health, has taken on the role of developing high-value pharmaceutical production in the region and improving access to medicines at reasonable prices in Vietnam.
In the short term, the focuses are on administrative reform, perfecting institutions, improving operational efficiency, and accelerating technology application. Administrative procedure reform and decentralisation of power will continue to be promoted to improve management efficiency. The Ministry of Health has encouraged administrative reform and applied IT in granting circulation licences.
The industry has made significant progress, reaching level three under the World Health Organisation's classification. As of July 2024, there were more than 23,000 drugs with valid circulation licences. The industry currently boasts 245 production facilities, of which 26 factories meet EU-GMP standards or equivalent.
Despite these advancements, Vietnam's pharmaceutical industry still heavily relies on imports for most relevant raw materials, accounting for nearly 90%. To address this, the sector will focus on developing raw material production.
There is a lack of highly qualified people in fields such as clinical pharmacy and drug testing. However, clinical pharmacy activities have been accelerated and institutionalised in central, provincial, and many private hospitals. The number of university pharmacists per 10,000 people has increased from 2.88 in 2019 to 3.3 in 2024.
Investment opportunities also lie in the area of biotechnology, with some domestic facilities already mastering this technology to produce specialized treatment medicines. The total pharma market value has increased from $2.7 billion in 2015 to more than $7 billion in 2024.
However, many foreign-invested pharmaceutical companies only export products or franchise, not really transferring core technology to Vietnam. This is an area where further investment could lead to significant advancements in the industry.
The number of drugs granted and renewed circulation registration has increased rapidly from 2020 to 2024. By the end of July, there were 284 administrative procedures in use, a reduction of over 240 procedures compared to the end of 2021.
In conclusion, Vietnam's pharmaceutical industry is showing promising signs of growth, with opportunities for investment in various areas. The government is taking steps to improve the industry's competitiveness, and with continued investment and reform, Vietnam could become a regional hub for high-value pharmaceutical production.
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