Development opportunities of the pharmaceutical industry

Recently, at the Workshop on implementing Resolution No. 29-NQ/TW of the Party Central Committee on continuing to promote industrialization and modernization of the country to 2030, with a vision to 2045: New approaches in developing the medical and pharmaceutical industry, Mr. Le Trong Minh, Editor-in-Chief of Investment Newspaper shared: “In the new development stage, Resolution No. 29 becomes a guideline for industries, including the medical industry. The issuance of an action program with specific contents will contribute to better supporting the sustainable development of the biotechnology and pharmaceutical industry”.

Opinions at the workshop stated that, currently, the investment trend in the medical and pharmaceutical sector has changed a lot, focusing on innovation, research and development, clinical trials, and technology transfer. Therefore, new approaches are needed in investing in the medical and pharmaceutical sectors to attract resources and technology, contributing to the country's common goal of protecting, caring for, and improving people's health better and better.

Dispensing medicine to patients at Nam Tu Liem District Medical Center, Hanoi City.

Regarding the potential and strengths of the pharmaceutical industry, according to Ms. Nguyen Thi Bich Ngoc, Deputy Minister of Planning and Investment, the healthcare market in general and the Vietnamese pharmaceutical market in particular are growing rapidly, with strong potential in the field of pharmaceutical exports.

According to forecasts by experts and scientists, by 2030, the total value of Vietnam's pharmaceutical market will increase to about 13 billion USD. To date, the number of pharmaceutical factories in Vietnam that meet GDP standards is 228, including 7 vaccine factories, 6 vaccine secondary packaging factories, and 77 pharmaceutical material factories. This is an opportunity for Vietnam to develop the pharmaceutical industry with the potential to become a regional pharmaceutical and medical center.

Need a mechanism to attract investment

A question being raised is that although the incentive mechanism is ranked in the most attractive category, why has the growth and development rate of Vietnam's pharmaceutical industry not yet reached expectations? Regarding this issue, according to Ms. Nguyen Thi Bich Ngoc, Vietnam needs to prioritize attracting investment to develop the pharmaceutical technology industry in the coming time. At the same time, it is necessary to improve competitiveness in the production chain of pharmaceuticals and medical services; improve research capacity to produce biological vaccines. On the other hand, support and incentive policies also need to be considered, especially after January 1, 2024, many countries, including developed and developing countries, will apply global minimum taxes.

From a policy perspective, Mr. Phan Duc Hieu, Standing Member of the National Assembly's Economic Committee, said that investors are not only interested in support policies or financial incentives, but they are also very interested in safety and stability because investments in the pharmaceutical industry are often very large. "Therefore, when consulting on policies, planners need to pay attention to the needs of foreign investors, not simply what management agencies or domestic enterprises want. In addition, Vietnam's policies need to be competitive to create more advantages. However, creating conditions for foreign investors but also promoting the participation of domestic enterprises," Mr. Phan Duc Hieu shared.

From the perspective of a pharmaceutical enterprise, Mr. Emin Turan, Chairman of Pharma Group, emphasized that Vietnam has many advantages from learning from the experiences of other countries. Attracting investment in the pharmaceutical industry brings many socio-economic benefits and many countries in the region have begun to take action. Therefore, Vietnam needs to be aware of investment competition from other countries and speed up the process of attracting investment.

Mr. Emin Turan also recommended that the Vietnamese Government should focus on institutional reform, ensuring a feasible and predictable investment and business environment; focus on improving the policy environment, building specific goals to shorten the time for people to access new drugs, as well as providing a flexible health financing mechanism, ensuring the harmony of interests of all parties. At the same time, the development of the industry must be based on a scientific foundation, with a roadmap to create a healthy development ecosystem based on competition, innovation, and deep integration to enhance the competitiveness of the Vietnamese pharmaceutical industry in the region and the world.

Article and photos: MINH HA

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