The Vietnamese Ministry of Health has proposed a policy to encourage the transfer of new and innovative drugs to enhance patient opportunities, said Mr. Vu Tuan Cuong, general director of the Drug Administration of Vietnam (DAV).
Mr. Cuong made the announcement while highlighting that innovative drug comprises only about 3% of the total drugs in Vietnam but accounts for 22% of the market value, with most being imported.
While Vietnam’s focus on generic drugs ensures the availability of essential medicines, it limits investment in high-tech and innovative pharmaceuticals, the official pointed out, adding that domestic pharmaceutical manufacturers, primarily small- and medium-sized enterprises (SMEs), have not prioritized investment in research or production of these drugs due to financial and resource constraints.
Currently, domestically produced drugs represent 70% of the quantity used but only 45%-50% of the market value. Vietnam has 230 pharmaceutical factories meeting GMP-WHO standards, with 20 also meeting GMP-EU standards. The WHO classifies Vietnam’s pharmaceutical industry as Level 3, capable of producing generic drugs while partially self-sufficient in certain products. The market is projected to reach $6.5 billion-$7 billion in 2023-2024, with imports accounting for $3.5 billion.
The national strategy aims to develop Vietnam’s pharmaceutical industry into a key manufacturing and technology transfer hub in Southeast Asia by 2030, elevating the industry to WHO Level 4 and targeting an export value of $1 billion. The strategy also aims for domestic production to meet 80% of national demand and provide 20% of the raw materials needed for local drug production.