Reorganize the drug distribution and business system

Thùy Linh |

The Department of Drug Administration, Ministry of Health is restructuring the business and distribution system of drugs and pharmaceutical ingredients.

Development trends of pharmacy chains

Sharing with Lao Dong reporter, the leader of the Drug Administration Department said: Due to the development and specialization of society, a number of pharmaceutical business activities have been formed, and pharmacy chain systems have begun to clearly define and determine their position in distributing drugs from distributors to patients/consumers in channels outside the hospital.

In Vietnam, the 2016 Pharmacy Law has policies to develop the pharmacy chain business model. However, the conditions, rights, and responsibilities of pharmacy chain businesses have not been specifically regulated.

Currently, pharmacy systems are gradually becoming a unique model in the drug supply chain of Vietnam. In which, some pharmacy chains are formed with a large number of pharmacies.

According to statistics in 2023, Long Chau and Pharmacity pharmacy systems have more than 1,000 pharmacies each nationwide; some chains have fewer pharmacies such as An Khang, U pharma, Phano Pharmacy, etc.

According to the leader of the Drug Administration, pharmacy chain systems are developing strongly in breadth or depth, with high specialization. However, pharmacies in the chain are currently still operating separately, quite independently, leading to increased costs for administrative management and businesses.

The addition of specific regulations on pharmacy chains aims to unify management methods; enhance specialization and modernize the system of drug retail establishments. It is expected that some basic specific regulations of pharmacy chains that independent retail establishments do not have will be stated in the draft Law amending and supplementing a number of articles of the 2016 Law on Pharmacy.

Specialization is expected to significantly improve drug quality (for example, allowing drug transfer between pharmacies in the chain will limit the situation of slow drug circulation leading to failure to meet expiration dates, affecting drug quality).

Due to the requirement of unified management throughout the chain system, facilities are required to apply information technology in management. This is very beneficial for tracing information about the origin of drugs, managing customer information to help make business operations transparent.

It is expected that when pharmacy chains are formed, it will create competitive dynamics, requiring traditional pharmacies to improve, enhance service quality, ensure supply, and increase people's access to drugs at reasonable prices.

Strictly manage online drug sales

Online shopping has become a trend and is the choice of many people, including medicine.

According to some studies, in Vietnam, the number of connected consumers in 2015 was 23 million people, however, this number is expected to nearly double, reaching 40 million people in 2025, the annual spending of connected consumers in Vietnam will increase sharply in the coming years.

Through that, it can be seen that doing business by e-commerce is a new business method, an inevitable trend in the digital age.

The leaders of the Drug Administration Department believe that it is necessary to supplement and build a legal corridor for the above business method in the pharmaceutical field to avoid legal gaps on this issue. It is expected that the revised Law on Pharmacy will add a provision requiring an establishment wishing to conduct e-commerce to be specifically assessed for its facilities, personnel, documents and must be granted a Certificate of Eligibility for Pharmaceutical Business.

"That means, this must be an existing business establishment, licensed to operate in the traditional way. Online sales are just an activity carried out in parallel with traditional sales. Therefore, whether operating in the traditional way or online, the establishment must still comply with general regulations," the leader of the Drug Administration emphasized.

After the implementation process, the presiding agency will evaluate and review to consider adjusting these policies if necessary.

Thùy Linh
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The Ministry of Health has just officially issued regulations on direct payment of medicine and medical equipment costs for people with health insurance cards.

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Thùy Linh |

The Ministry of Health continuously renews the registration of drugs and pharmaceutical ingredients to ensure drug supply and medical examination and treatment.

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Thùy Linh |

The Ministry of Health has just issued Circular 22/2024/TT-BYT regulating the direct payment of drug and medical equipment costs for people with health insurance cards.