Many positive results, creating a foundation for development
Vietnam is currently in the top of pharmaceutical markets with the highest annual growth rate in Asia. Specifically for domestic drugs, production value has grown steadily over the years at a growth rate of 12-15%/year. The value of domestically produced drugs accounts for 70% in terms of quantity and nearly 50% in terms of drug use value. Domestic production capacity has covered 13/13 essential drug groups and 11/12 types of vaccines in the Expanded Program on Immunization. Vietnam also has 67 companies deploying the export of drugs and drug raw materials with a total value of about 312 million USD.
Notably, domestic vaccine production has met 100% of the needs of the Expanded Program on Immunization. The Vietnamese pharmaceutical market may reach a scale of over 10 billion USD by 2026, if the current growth momentum is maintained. Drug price management is well controlled, the CPI index of drugs and medical services has been lower than the general CPI for many consecutive years, contributing to reducing the cost burden for people.
In addition, clinical pharmaceutical activities have a clear legal corridor, drug quality is strictly controlled with the rate of substandard drugs maintained below 1%. These are important foundations for the pharmaceutical industry to develop sustainably.
Bottleneck points that need to be removed
According to Director of the Drug Administration of Vietnam (Ministry of Health) Vu Tuan Cuong, despite many achievements, Vietnam's pharmaceutical industry still does not have high and sustainable competitiveness. Most businesses focus on simple preparations, investment in research and development and high technology is still limited.
Worryingly, nearly 90% of raw materials for medicines still depend on imports, making the industry vulnerable to international market fluctuations, epidemics, exchange rates and risks of origin fraud. High raw material costs also reduce the competitiveness of Vietnamese medicines in the export market.
Some fields such as clinical pharmacy, new drug research, quality management still lack human resources. Illogical use of drugs, selling drugs without prescription still occurs. Problems in bidding and health insurance payment also affect the ability of patients to access drugs.
National strategy and new policy impetus
In order to solve the above shortcomings, the Government has approved the National Strategy for Pharmaceutical Industry Development to 2030, vision 2045, with the goal of making Vietnam a center for production, processing and technology transfer of pharmaceuticals in the ASEAN region.
According to the roadmap, by 2030, domestically produced drugs strive to meet 80% of usage needs and 70% of market value; proactively produce 20% of raw materials for medicine. By 2045, Vietnam aims to master the production of specialized and specific drugs, new drugs, original branded drugs, vaccines, biological products and raw materials, with a total value of the Pharmaceutical industry contributing over 20 billion USD to GDP.
An important highlight is the Law amending and supplementing a number of articles of the Pharmaceutical Law passed by the National Assembly at the end of 2024. The Law has expanded priority areas for development such as high-tech drugs, new drugs, vaccines, biological products, and domestic medicinal herbs; and at the same time supplemented special preferential policies for large investment projects from 3,000 billion VND or more.
The law also simplifies administrative procedures, shortens licensing procedures, prioritizes procurement and maintains prices for new drugs, high-tech drugs, and rare drugs produced in Vietnam. Traditional medicine and medicinal herbs are encouraged to develop in conjunction with intellectual property protection and building sustainable growing areas.
Towards a modern pharmaceutical industry
In parallel with perfecting the institution, the Pharmaceutical industry is promoting digital transformation, building a national database on pharmaceuticals, connecting the entire drug supply system across the country. Modernizing the distribution system, storage, and transportation according to international standards is identified as a key task.
The strategy also emphasizes the development of pharmaceutical industrial parks, medicinal herb value chains and attracting technology transfer from large corporations, thereby gradually reducing import dependence and increasing added value for Vietnamese drugs.
With clear orientations, synchronous policies and determination from the Government, Vietnam's pharmaceutical industry is facing a great opportunity to break through, not only meeting domestic needs well but also rising to become a high-value pharmaceutical production center of the region, making practical contributions to community health and economic growth.
