On October 22, the National Assembly discussed the draft Law amending and supplementing a number of articles of the Law on Pharmacy.
At the meeting, the Chairwoman of the National Assembly's Social Committee presented a report explaining, accepting and revising the draft Law amending and supplementing a number of articles of the Law on Pharmacy. Regarding the State's policy on pharmacy and the policy on developing the pharmaceutical industry (Articles 7 and 8 amended), Ms. Anh said that, taking into account the opinions of delegates, the draft Law has been revised in the direction of comprehensively amending Article 7 of the current Law to stipulate the State's general policies on pharmacy; stipulating preferential policies and investment support in the development of the pharmaceutical industry in Article 8 (amended); and regulations related to corporate income tax will be considered when amending the Law on Corporate Income Tax. At the same time, the Government is assigned to provide detailed regulations to ensure implementation.
In particular, Article 7 (amended) adds the provision "having preferential and support policies to develop the Vietnamese pharmaceutical industry into a spearhead industry" (clause 3); stipulating preferential policies for purchasing domestically produced drugs at public health facilities (clause 4); prioritizing administrative procedures when granting circulation registration certificates and import licenses (clause 5); applying preferential and support mechanisms from funds supporting scientific and technological activities (clause 6); supporting the development of medicinal herbs, promoting traditional medicines and medicinal herbs (clauses 7, 8 and 9); developing a professional and modern drug supply system (clause 10); improving the quality of human resources (clause 12); maintaining and reducing prices for some groups of drugs that need to attract technology transfer (clause 13).
Article 8 (amended) stipulates specific investment incentive policies to further promote the development of the domestic pharmaceutical industry. Due to different opinions on this content, in order to be cautious and ensure publicity and transparency, the National Assembly Standing Committee would like to ask for the opinions of delegates on two options. Specifically, option 1 stipulates that special investment incentives and support can be applied to newly established projects in the pharmaceutical sector with an investment capital of VND 3,000 billion or more, with a minimum disbursement of VND 1,000 billion within 3 years from the date of issuance of the Investment Registration Certificate or approval of the investment policy.
The advantage of this option is that it is specific, innovative and feasible for the pharmaceutical industry and is consistent with the provisions of Clause 4, Article 4 of the Investment Law: "In case another law issued after the effective date of the Investment Law requires specific regulations on investment that are different from the provisions of the Investment Law, it is necessary to specifically determine the content of implementation or non-implementation according to the provisions of the Investment Law, the content of implementation according to the provisions of that other law". The disadvantage is that it is different from the provisions on special investment incentives of the investment law.
Option 2 does not specify a specific scale but refers to the application according to the Investment Law, which means that incentives and special investment support can only be applied to newly established projects with investment capital of VND 30,000 billion or more, disbursing a minimum of VND 10,000 billion within 3 years from the date of being granted the Investment Registration Certificate or approved the investment policy (10 times the capital scale compared to option 1).
The advantage of this option is that it complies with the provisions on special investment incentives of the investment law. The disadvantage is that it is not specific, innovative and not feasible for the pharmaceutical industry.
Delegate Tran Khanh Thu (Thai Binh Delegation) said that domestic and international practices show that creating a healthy competitive business environment according to market mechanisms will create conditions for domestic enterprises to promote autonomy, enhance competitiveness, and promote development, not only for domestic enterprises but also for the entire industry.
Most countries in the region and in the world with developed pharmaceutical industries such as India, Korea, and Singapore have implemented open-door policies in the field of pharmaceutical distribution and logistics, and these policies have had a positive impact on mobilizing and attracting foreign investment to improve the development capacity of domestic enterprises.
According to Ms. Thu, while implementing open-door policies, countries still ensure not only domestic drug supply but also export to foreign countries and ensure health security for their own countries and the whole region, and legal regulations on prices and anti-competition help them ensure health security goals and control drug prices. Therefore, it is advisable to refer to the experiences of other countries in this field. That is also consistent with the preferential policy to support the development of the pharmaceutical industry.
Delegate Tran Thi Nhi Ha (Hanoi Delegation) raised the issue that regarding the regulations on incentives in drug purchases in Clause 4, Article 7, there are cases where incentives are very difficult to implement and almost non-existent in practice. Such as original pharmaceutical drugs with technology transfer in Vietnam, or to prove the first domestically produced generic drug. In addition, some policies are not clear. For example, Clause 5, Article 7 stipulates incentives on administrative procedures for new drugs, rare drugs, high-tech drugs, but the draft Law, including the draft Decree, does not specify how incentives are provided, shortening the licensing time or creating a "green channel" for eligible units. Therefore, Ms. Ha suggested that there must be regulations on the subjects eligible for incentives, forms of incentives and levels of incentives so that the policies mentioned will be substantial and feasible.
Recognizing that the policy on developing medicinal herbs has not made any breakthroughs compared to the Law on Pharmacy, Ms. Ha suggested that it is necessary to include in this draft Law policies to develop the Vietnamese medicinal herbs industry such as: policies to digitize soil, water, climate, and indigenous medicinal herbs to develop planning for medicinal herb growing areas. In addition, the Ministry of Health also needs to issue regulations on good practices for cultivation, harvesting, and processing in addition to the current GACP standards for medicinal herbs.
Source: https://daidoanket.vn/de-xuat-so-hoa-tho-nhuong-nuoc-khi-hau-cay-duoc-lieu-ban-dia-de-phat-trien-nganh-cong-nghiep-duoc-10292810.html
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