Law amendments to facilitate pharmaceutical industry growth

Strengthening self-sufficiency

Over the past years, the Party and the State have created favorable conditions for the pharmaceutical industry’s development to ensure adequate supply of medicines for the people’s healthcare needs. The Pharmacy Law enacted by the National Assembly in 2016 has adjusted all issues related to State policies on pharmaceuticals and the development of the pharmaceutical industry.

According to Nguyen Thanh Lam, Deputy Director General of the Drug Administration of Vietnam under the Ministry of Health, after the enactment of the Pharmacy Law, the Vietnamese pharmaceutical industry has fulfilled the important task of ensuring timely and adequate supply of quality medicines at reasonable prices for the people. The pharmaceutical industry has provided effective logistics support for the healthcare sector in medical examination and treatment.

The number of pharmaceutical manufacturing facilities in Vietnam has increased from 167 in 2016 to 238 in 2023

The number of pharmaceutical manufacturing facilities in Vietnam has increased from 167 in 2016 to 238 in 2023. These facilities have complete production lines for most basic dosage forms as well as some advanced drug formulations. There are 44 facilities with foreign investment.

Vietnam also has vaccine production facilities meeting the demand for 10 out of 11 vaccines in the Expanded Immunization Program and four other vaccines serving the people’s vaccination needs. Vietnam is one of the few countries in the region and the world that can proactively and self-reliantly supply domestically produced vaccines. This shows that the 2016 Pharmacy Law has provided a foundation for the development of the pharmaceutical industry.

Prioritizing new drug production

However, given the changing disease patterns, focusing on developing the pharmaceutical industry is crucial to addressing practical issues in a timely manner.

The draft amendments to the Pharmacy Law have been submitted to the National Assembly for the first round of comments at the seventh session, and are expected to be considered for approval at the year-end session, tentatively in October.

Under the draft amendments to Articles 7.3 and 7.5 of the Pharmacy Law, the pharmaceutical industry should attract investment in the direction of providing investment incentives or special investment incentives and supporting policies according to the law for research, technology transfer, investment in production of pharmaceutical ingredients, new drugs, original branded drugs, specialized drugs, high-tech drugs, vaccines, biologics, essential drugs, rare drugs, herbal medicines, drugs made from Vietnamese medicinal herbs and traditional medicines with national brands.

Special incentives should be provided for scientific research on the development of pharmaceutical manufacturing technology, biotechnology to produce new drugs; research and production of new drugs from unique domestic medicinal materials; and the conservation of rare and unique domestic medicinal gene resources.

At a recent forum discussing amendments and supplements to the Pharmacy Law, participants shared the opinion that to attract investment and boost the production of medicines and raw materials, it is necessary to promote research, technology transfer, and the production of pharmaceutical raw materials, high-tech medicines, and biotech medicines. However, breakthrough mechanisms and policies are required to achieve real effectiveness. The pharmaceutical industry development policy must ensure the harmony between attracting foreign investment and developing domestic enterprises.