Vietnamese pharmaceutical sector growth peaks in Asia
Vietnamese pharmaceutical sector growth peaks in Asia
Viet Nam’s domestic pharmaceutical industry is on the rise, due to booming demand stemming from increasing national health insurance coverage and increased spending on drugs per capita since 2010, former Health Deputy Minister Le Van Tuyen said during a Conference on Viet Nam’s pharmaceutical industry and policy held in HCM City on November 14.
Viet Nam is expected to enter the top 20 fastest and most stably growing countries in the pharmaceutical sector in the next five years, according to the Business Monitor International (BMI). Money spent on pharmaceutical products per capita in Viet Nam has doubled to around US$40 over the past 5 years.
Tuyen further commented on the favourable conditions for the development of the domestic pharmaceutical field as the fastest growing market in Asia, with 2015 sales at $4.2 billion and an average growth rate of 17 to 20 per cent from 2010 to 2015 with a prospect of 2017 growth about 17 per cent.
Nonetheless, total domestic pharmaceutical output only accounts for 45 per cent of total demand, leading to a constant supply shortage for hospitals. Also, eastern medicine currently only takes up 1 to 1.5 per cent of the total market, though the Ministry of Health has predicted a spike to 30 per cent in the next five years thanks to the vast ingredients selection of over 4,000 herbs.
Currently, the World Health Organization (WHO) has verified only 150 Vietnamese pharmaceutical factories as having Good manufacturing practice (GMP) quality. The MoH aims for a 2020 comprehensive cover of medicine supply with domestic production accounting for 80 per cent of total medicine demand, and an upgraded policy on investment and technology transfer.
The domestic pharmaceutical industry is lacking in several areas, such a long term concentrated development strategy as well as a modern promotion and distribution system. The current level of creativity is demonstrated through the low percentage of domestic patented inventions of 1 per cent.
