Domestic drugs have large consumption volume and low value.

The total value of the Vietnamese pharmaceutical market has reached 7.46 billion USD. However, the value of domestically produced drugs is low, less than 50% of the consumption value.

Dr. Ta Manh Hung, Deputy Director of the Department of Drug Administration (Ministry of Health) said that one of the outstanding new policies of the Pharmacy Law, which will take effect from 2025, is the specific regulations on incentives and support for the transfer of technology for the production of new drugs and generic drugs. Vietnam aims to become a center for the production and transfer of technology for generic drugs in the ASEAN region.

Domestically produced drugs will meet 80% of quantity and reach 70% of value by 2030.

Investment projects with a total capital of VND3,000 billion or more and disbursing at least VND1,000 billion in the first 3 years will receive special incentives for research and development of technology, production of new drugs and drugs from domestic medicinal sources.

Dr. Ta Manh Hung: Currently, Vietnam has about 20 types of drugs with technology transferred from multinational companies.

According to Dr. Hung, the total value of Vietnam's pharmaceutical market from 3.4 billion USD (in 2015) has reached 7.46 billion USD by 2022. Currently, 15 types of vaccines are produced domestically, meeting 100% of the expanded vaccination demand and 10% of the service vaccination demand.

The proportion of domestically produced drugs meets about 70% of the quantity, and there are about 20 types of drugs with technology transferred from multinational companies such as AstraZeneca, Servier, and Viatris.

However, Mr. Hung also pointed out the limitations of domestic drugs, which are low value, currently accounting for only about 46.3% of consumption value, although the quantity used accounts for a large proportion. It is estimated that 80-90% of raw materials for drug production must be imported.

"Limited resources, lack of investment capital, unsynchronized infrastructure, and limited high-quality human resources in research and production" are the first factors in the barriers to domestic pharmaceutical development, as pointed out by the leader of the Drug Administration of Vietnam.

Source: https://thanhnien.vn/thuoc-noi-dia-so-luong-tieu-thu-lon-gia-tri-thap-185241225184816994.htm