Local firms to lead drug market

The latest development plan for the pharmaceutical industry sets ambitious targets that can create growth opportunities, but could also prove difficult for local firms to achieve, experts say.
The latest development plan for the pharmaceutical industry setsambitious targets that can create growth opportunities, but could alsoprove difficult for local firms to achieve, experts say.

They said the plan's feasibility would depend on follow up support policies from the Government.

A prominent target in the plan is to have medicines made in Vietnamto account for 80 percent of the nation's consumption by 2020.

The plan also targets having 30 percent of the locally made drugs use traditional materials.

The "National Strategy for Pharmaceutical Industry Development till2020 with a vision to 2030" was approved recently by the Prime Minister.

Other targets include ensuring 100 percent supply ofmedicines needed to prevent and treat diseases, and meeting 20 percentof materials demand for locally produced medicine.

The planalso seeks to have locally-made vaccines meet the needs of the NationalExpanded Programme for Immunisation as also 30 percent of the demand forpaid vaccinations.

Officials say the plan is a positive onefor the domestic pharmaceutical industry as also disadvantaged sectionsof the society, especially the poor and people living in remote andmountainous areas.

"The strategy aims to provide sufficient,safe medicines at reasonable prices to meet the country's demand fordisease prevention and treatment," Truong Quoc Cuong, director of thehealth ministry's Drug Administration of Vietnam, said.

"Priority would be given to supply medicines for social welfare policybeneficiaries, ethnic minorities and poor people in mountainous andremote areas," he said.

Cuong also said that thepharmaceutical law will be revised with a focus on encouraging theproduction and use of locally manufactured medicines throughstandardisation of trading rules and application of good practicestandards.

Policies to promote research, production, importand export of essential medicines will be issued as part of the effortsto provide high-quality medicine at reasonable prices, he said.

Cuong said the country's pharmaceutical industry would be developedwith a focus on production of generic medicines. Imported drugs would,step by step, be replaced by locally produced ones, he added.
"Policy priority will be given to the production, supply and use ofgeneric medicines, specific drugs, vaccine and biological products anddrugs from traditional medicine materials. Import of pharmaceuticalmaterials and generic medicine would be limited for medicines producedin the country."

The Government will also support the use oflocally manufactured medicine with funds from the State Budget andthrough health insurance schemes, he said.

Le Thuy Linh, ahousewife in Hanoi , said she was happy with what she had heard aboutthe new plan because it would benefit many people, especially those inrural areas.

"I hope that everybody will be providedsufficient medicines at reasonable prices and with good quality insteadof imported ones at cut-throat prices," she said.

Several pharmaceutical experts said that some targets mentioned in the plan would be difficult to achieve.

They said an increase of more than 30 percent in the country's totalmedicine consumption within the next seven years presents a tall orderfor local drug companies.

Local firms would findit tough to expand their market share, increase product quality,establish trademarks and compete against imported products, the expertssaid.

The Health Ministry has acknowledged that the localpharmaceutical industry faces a lot of disadvantages in competing withforeign companies because of modest capital resources at their disposal,a shortage of pharmacists and outdated technology.

Studieshave also noted that domestic investment in pharmaceutical research anddevelopment is miniscule and medicines are mostly produced usingimported materials.

Industry insiders are ambivalent aboutthe strategy, with some skeptical about its feasibility and othersoptimistic about development opportunities.

Traphaco JSCGeneral Director and Chairwoman Vu Thi Thuan said that the strategywould boost development of local firms thanks to the Government'ssupport in terms of policy and financial resources.

"International experience shows that there is no country exceptSwitzerland , where locally manufactured medicines dominate importedones," she said.

Thuan also said that consumers would decide the fate of the strategy through the choices they make.
"Success of the strategy would depend on a change in Vietnamesepeople's awareness and belief in local medicine which, in turn, woulddepend on the success or failure of the programme encouraging Vietnamesepeople to use drugs made in the country."

Chairman and CEOof the Hau Giang Pharmaceutical Company, Pham Thi Viet Nga, said thatthe strategy was a very good sign for local pharmaceutical firms.

"However, its feasibility would depend much on the government'sfuture policies for supporting local drug firms in competing withforeign companies," she said.

Nga said localpharmaceutical firms have the daunting challenges of the people's lackof confidence in locally manufactured medicine and unfair competitionbetween themselves. The Government also limits local firms' spending onpromotion, she said.

Cuong of the Drug Administration ofVietnam agreed that implementing the strategy effectively would be achallenging task, especially in the perfecting of mechanisms, policiesand master plans so that achievements can be sustained and investment inthe industry increased.

The country also faced a shortage ofhuman resources and the limited investment and research capabilities oflocal firms, he said.

Health Ministry statistics show thatVietnam currently has 121 western medicine manufacture factories and17 making traditional medicines that have met the World HealthOrganisation's Good Manufacturing Practice (GMP) standards.

In 2012, the value of locally manufactured medicines made up 46 percent of the nation's total consumption.

"They (local drug firms) would have to work hard to increase outputin order to account for 80 per cent of the country's total medicineconsumption and 100 per cent of vaccines for the immunisationprogramme," Cuong said.

He said planners had made an effortto ensure that the strategy's targets, solutions and measures wererealistic, adding that although it would take a lot of effort, they wereachievable.-VNA

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