Vietnam Targets $20B Pharmaceutical Industry with New Bidding Law
The pharmaceutical industry has aimed to contribute over $20 billion to Vietnam’s gross domestic product (GDP) by 2045, fueled by the new provisions of the Bidding Law 2023, local media reported.
The Bidding Law, passed by the National Assembly in June 2023, marked a key milestone for the industry, with more detailed and clearer incentives for drug procurement than its 2013 predecessor.
The Vietnam Pharmaceutical Companies Association lauded these changes, seeing them as a solid foundation for local enterprises. With an increasing trend of domestic drug usage in hospitals, many central and tertiary hospitals now have a usage rate of over 50%. The technical screening process has validated the quality of these drugs, meeting the tender document requirements.
Support and incentives for Vietnamese traditional pharmaceutical ingredients have been in place since the Bidding Law 2013, with numerous policies enhancing their participation in national tenders. These efforts have led to a significant presence of Vietnamese medicines and traditional pharmaceutical ingredients in hospitals across the country.
The Bidding Law 2023, by facilitating the procurement of drugs and medical equipment, aligns with the specialized needs of the healthcare sector. It allows for direct contracting in emergency cases or to maintain healthcare facility operations, applying centralized procurement for rare drugs with limited usage.
Furthermore, the new law encourages investments in technology and raw materials for high-quality drug production, meeting advanced standards. This policy shift is expected to create opportunities for local pharmaceutical companies to enhance their skills, technology, and market share, fostering collaborations with foreign pharmaceutical groups.
Currently, domestic drugs satisfy 50% of the country's medicinal needs, including 12 out of 13 vaccines in the Expanded Immunization Program produced locally. The country boasts over 200 drug manufacturing plants meeting WHO's GMP standards.