Each Vietnamese person is estimated to spend $33.8 on medicines in 2014, compared to just $19.8 in 2009, showed a recent report by the Ministry of Health. The average growth rate of the domestic pharmaceutical market is predicted to reach 17%-19% per year, the ministry said, however, adding that market potential has been greatly influenced by imports during the first five months of this year. The Vietnam General Department of Customs confirmed that drug import values had increased from January in terms of raw materials and medicine. In January, the industry spent only $12.1 million on importing raw medical materials, with an increase of nearly $20 million in March and $18 million in April. During the first half of May, the figure reached nearly $10 million. India, France and South Korea have to date remained the biggest suppliers of Vietnam’s domestic pharmaceutical industry. Import turnover is likely to rise after the Ministry of Industry and Trade announced that import tax would be cut from 5% to 2.5% during the 2011-2012 period. A plan to develop and restructure the country’s pharmaceutical industry is now under compilation, which is expected to encourage production of popular medicine in order to cut prices, stabilize the market and reduce its dependence on foreign countries. (Vietnam News June 10)
