Need a breakthrough mechanism to develop the pharmaceutical industry

The pharmaceutical industry is an industry with the ability to participate deeply in the global value chain, having a spillover effect on other economic sectors.

Good growth, but still weak points

According to the Department of Chemicals (Ministry of Industry and Trade), in recent years, the pharmaceutical industry in general and the Vietnamese pharmaceutical chemistry industry in particular have grown rapidly. According to statistics, the Vietnamese pharmaceutical market reached about 7 billion USD in 2020, and is forecast to continue to grow at a rate of 10-15% per year in the coming years.

The pharmaceutical industry is capable of participating deeply in the global value chain, having a spillover effect on other economic sectors. Photo: HT

Mr. Hoang Quoc Lam - Deputy Director of the Department of Chemicals, Vietnam's pharmaceutical industry has had quite good growth in production and business in recent years. Many domestic pharmaceutical enterprises have achieved GMP-WHO standards, some of which have achieved EU-GMP or Japan-GMP standards.

“ However, most domestic pharmaceutical companies produce common, popular drugs on the market such as some antibiotics, pain relievers, fever reducers, etc. While specialized, special-treatment drugs that require modern preparation techniques have not been produced yet, ” Mr. Hoang Quoc Lam pointed out.

According to the Department of Chemicals, the Vietnamese pharmaceutical industry is generally underdeveloped. There are currently only about 8 pharmaceutical enterprises in the country, of which 3 enterprises meet GMP-WHO standards. The products of these enterprises are relatively simple, including terpin hydrate, some additional minerals such as magnesium hydroxide, calcium carbonate, calcium phosphate, gelatin.

According to UNIDO classification, Vietnam's pharmaceutical industry is classified at level 3/5, meaning "domestic pharmaceutical industry produces most finished products from imported raw materials", according to WHO classification, Vietnam's pharmaceutical industry is only at level 3 (including 4 levels) "has domestic pharmaceutical industry; produces generic drugs; can export some pharmaceuticals". New drug preparation activities meet about 70% of drug demand by quantity and 50% by value, but mainly use imported raw materials, domestic raw materials only meet a small part of drug production demand (about 5.2% for modern drugs and about 20% for oriental drugs).

Because the pharmaceutical industry is not yet developed and its products cannot compete with those of other countries in the region such as China and India, most of the raw materials used to prepare medicines and produce other health protection products must be imported.

In addition, the weaknesses and limitations of our country's pharmaceutical industry are due to many causes, including the impact of a number of factors, including: Low efficiency in exploiting and using raw materials; not taking advantage of the country's socio-economic strengths; current policy mechanisms still have some shortcomings, so they have not attracted domestic enterprises and foreign-invested enterprises to invest; the negative side of FTAs.

Aiming to build 2 high-quality pharmaceutical industrial parks

According to the Department of Chemicals, in such a context, it is necessary to identify the advantages, difficulties and challenges to develop specific solutions to develop the pharmaceutical industry. Specifically, the Program for Development of Domestic Pharmaceutical and Medicinal Materials Industry to 2030, with a vision to 2045" was signed and issued by the Prime Minister in Decision 376/QD-TTg and the National Strategy for Development of Vietnam's Pharmaceutical Industry to 2030, with a vision to 2045 was issued by the Prime Minister in Decision 1165/QD-TTg in October 2023.

The program aims to prioritize the development of the pharmaceutical industry as an economic sector capable of creating high added value, participating deeply in the global production network and value chain, and having a high spillover effect on other economic sectors.

The pharmaceutical industry development program is being developed by the Department of Chemicals (Ministry of Industry and Trade) with the goal that by 2030, domestic production will ensure to meet 15%, and by 2045, 30% of the demand for raw materials by value for the pharmaceutical, preparation, and medical supplies industry in accordance with the goals of. Meet at least 50% of the demand for medicinal extracts for the production of dietary supplements, functional foods, and cosmetics that meet domestic standards and export to end-user countries. Implement research and testing of invented pharmaceuticals and new drugs.

There are at least 30 products which are pharmaceutical raw materials, nutritional supplements, functional foods, excipients from natural sources, medicinal herbs, etc. based on the research results, trial production of the Project to be brought to the market. Produce 100 standard compounds, 20 standard substances for the pharmaceutical and chemical industries.

At the same time, form and build 02 pharmaceutical industrial parks in the North and Central regions. Form and build a Center for Research, Investment Support and Transfer of Pharmaceutical Technology and a Center for Research, Development and Bioequivalence Evaluation.

By 2045, ensure to meet 30% of the demand for pharmaceutical raw materials by value for the pharmaceutical and medical preparation industry. Meet at least 75% of the demand for medicinal extracts for the production of dietary supplements, functional foods and cosmetics that meet domestic standards and export to end-user countries. Deploy the production of innovative pharmaceutical ingredients and new drugs.

To achieve the above goal, according to Mr. Hoang Quoc Lam, the Pharmaceutical Industry Development Program proposes 7 solutions, including: Perfecting policy institutions; planning solutions; financial solutions and investment support; science and technology solutions; international cooperation solutions; human resource training solutions and trade promotion solutions.

Along with that, promote the process of building the pharmaceutical industry on the basis of forming and sustainably developing pharmaceutical enterprises of all economic sectors; have specific mechanisms and policies with special incentives for investment in pharmaceutical production, especially pharmaceutical substances to encourage enterprises to invest in developing the pharmaceutical industry; speed up procedures for transferring and innovating technology, machinery and equipment lines; apply advanced and modern technology to produce high-quality pharmaceutical products that are competitive in the market, promote brand promotion and create a favorable market for pharmaceutical products.

Regarding policy solutions, the Department of Chemicals also proposed to introduce products using domestically produced pharmaceutical ingredients and the list of health insurance drugs. Prioritize bidding for drugs in hospitals for drugs using domestically produced raw materials. At the same time, create favorable conditions for the order and procedures for drug registration for drugs using domestically produced raw materials. Combine state budget investment with mobilizing other resources for the development of the pharmaceutical industry.

Source: https://congthuong.vn/can-co-che-dot-pha-phat-trien-nganh-cong-nghiep-hoa-duoc-356019.html