Vietnam has embarked on a bold and forward-looking plan to strengthen its pharmaceutical industry as a key component of its national healthcare and economic development strategy. To realize this vision, the country must implement targeted policy reforms, enhance collaboration across stakeholders, and actively support domestic innovation and production.

National Vision for Pharma Growth

In 2023, the Prime Minister signed Decision No. 1165/QĐ-TTg, approving the National Strategy for the Development of Vietnam’s Pharmaceutical Industry through 2030 with a vision to 2045. This strategic roadmap aims to elevate Vietnam’s pharmaceutical sector to the standards of leading countries in the region, ensuring public access to high-quality medicines at affordable prices. Central to this effort is achieving pharmaceutical security by promoting the local production of quality-assured, cost-effective medicines—serving both the domestic population and export markets.

To support the implementation of this strategy, the new Pharmaceutical Law, set to take effect mid-2025, will be aligned with Vietnam’s broader and long-term healthcare goals. These legal updates, including new decrees and circulars, are intended to ensure the sustainable supply of essential medicines and foster an environment where the domestic pharmaceutical industry can thrive and compete on the global stage.

To Enhance Opportunities for Local Manufacturers

To foster the sustainable development of the pharmaceutical sector in line with national strategies, the Ministry of Health should consider creating more favorable conditions for domestic EU-GMP-certified manufacturers.

In public procurement, the price gap policy is setting a difference between wholesale and bid-winning prices. There is a trend of non-profit bidding strategies where companies offer ultra-low prices to secure market share. While such bids may cover basic production and logistics, they rarely account for operational costs, regulatory compliance, or the significant investment required to localize the production (tech-transfer) and to meet stringent international quality standards such as EU-GMP. For many, the wholesale market is used to compensate for the unsustainable tender pricing.

This undermines Vietnam-based manufacturers investing in EU-GMP standards and risks shifting the market toward expensive on-patent medicines or low-cost generics from jurisdictions with limited regulatory oversight — jeopardizing medicine quality and long-term supply resilience. As a result, there is an urgent need to reconsider this policy. Exempting domestic EU-GMP manufacturers from the price margin rule would protect both the healthcare system and the long-term competitiveness of Vietnam’s pharmaceutical landscape.

Photo: Inside Davipharm’s EU-GMP certified factory in Binh Duong

Currently, products developed through technology transfer receive little to no support in administrative procedures. Regulatory prioritization should be granted to Vietnam-based manufacturers operating under EU-GMP or PIC/S standards, especially for products with proven bioequivalence and prior approval by stringent regulatory authorities. These manufacturers contribute directly to public health and local capacity-building by ensuring quality, reducing dependence on external supply chains, and meeting the highest safety standards.

Such manufacturers have made significant investments in  technology transfer, and quality assurance — aligning with Vietnam’s long-term health goals and reducing reliance on low-quality imports.

A major barrier is the structure of tax incentives. Current tax incentives — such as 5–10% corporate income tax reductions over 15–20 years — are only available to very large-scale projects exceeding VND 3,000 billion in value, with strict disbursement thresholds. This effectively excludes most Vietnam-based manufacturers, even those making strategic investments in innovation and quality. This threshold excludes most local manufacturers. To truly drive innovation and localization, tax incentives should be extended to support the development and manufacturing of new medicines, first generic drugs,  technology transfers, generics with BE conducted in mutually recognized centers, and EU-GMP medicines, incl. processes and the infrastructure. Eligibility should consider qualitative contributions, such as public health impact or innovation, rather than investment value alone.

Photo: Davipharm’s storage capacity is expanding to support production plans.

Another important area is the harmonization of standards and documentation between the Ministry of Health and the Customs Authority. Inconsistencies in pharmaceutical naming conventions, classification systems, and regulatory documentation are creating unnecessary hurdles for importers and exporters. The Ministry of Health should annually update the list of medicines and pharmaceutical ingredients for human use and cosmetics for export and import, which have been assigned to Harmonized System (HS) codes according to the Vietnam Export-Import Goods Classification List. Moreover, establishing a regular dialogue mechanism between the Ministry and Customs would allow to address obstacles for pharmaceutical companies in import-export procedures, and jointly issue inter-agency documents with Customs to provide guidance on accepting different naming conventions for ingredients or variations in quality standards.

Future Built on Innovation and Collaboration

Recognizing these systemic challenges, healthcare units, pharmaceutical companies, and industry associations are actively offering collaborative solutions in regulatory consultations. Adamed and Davipharm, a member of Adamed Group, strongly support the Vietnamese government’s long-term vision for healthcare and pharmaceutical development. Through sustained investment, local engagement, and knowledge sharing, the company aims to contribute actively to Vietnam’s progress.

Prime Minister Pham Minh Chinh met with representatives of Adamed Group in Warsaw in January 2025. Photo by Government Portal.

Drawing from Poland’s experience, where advisory working groups between government and private industry have successfully co-created policies that enhance economic competitiveness, Adamed has expressed openness to supporting the formation of a similar model in Vietnam. If adopted, such a platform could enable public-private collaboration, facilitate the exchange of international best practices, and advance the evolution of Vietnam’s regulatory and healthcare systems.

Vietnam’s long-term pharmaceutical strategy is very ambitious but achievable. With policy refinement, more inclusive regulatory processes, and stronger collaboration between stakeholders, the country can build a resilient pharmaceutical industry that delivers for both its people and the broader region. Creating an ecosystem that rewards quality, innovation, and responsible investment is essential to achieving Vietnam’s national vision.

Source: https://thuonghieuplus.vn/nganh-duoc-viet-nam-hanh-dong-chien-luoc-de-phat-trien-ben-vung-a77270.html