UK pharma scores $337 million trade boost in Vietnam

UK pharma scores $337 million trade boost in Vietnam

British pharmaceutical firms stand to benefit significantly from a recent Vietnamese legal change that eases access for the United Kingdom-made medicines, streamlining approval processes and reducing regulatory barriers.

According to the UK’s Department for Business and Trade, UK-based pharmaceutical firm could potentially see around $337 million in export gains over the next five years. The announcement comes ahead of the latest Joint Economic and Trade Committee (JETCO) on July 14 co-chaired by Trade Minister Douglas Alexander and Vice Minister Nguyen Hoang Long.

The meeting aims to expand trade between Vietnam and the UK, which has risen to more than $10.7 billion, and remove barriers for British businesses in key sectors like healthcare, finance, and clean energy.

Thanks to the British government's efforts, Vietnam has changed its laws to streamline the registration of new medicines and vaccines, now recognising approvals from international regulators such as the UK’s Medicines and Healthcare Products Regulatory Agency (MHRA).

It opens the door to more commercial opportunities for UK companies as they can avoid time-consuming paperwork and expensive legal processes so long as their products have been MHRA approved in the last five years, making it cheaper, quicker and easier to sell products to Vietnam.

JETCO will advance the UK’s ambition to strengthen ties with fast-growing Asian economies, while supporting priority sectors such as life sciences, education, and green energy – key pillars of the UK’s Modern Industrial Strategy, a 10-year plan focused on boosting business investment and growing future industries.

Renewable energy will be on JETCO's agenda as both countries pledge to work together to support the development of Vietnam’s renewable energy sector, particularly around offshore wind, with the industry in the UK forecast to support 100,000 jobs by 2030.

Trade Minister Douglas Alexander said, "Vietnam is a dynamic, fast-growing economy. The removal of pharmaceutical barriers with one of our closest trading partners in Asia is a boost for the UK pharmaceutical industry and prove our Industrial and Trade Strategies are already delivering. The UK is committed to strengthening its relationship with Vietnam, which is witnessing rapid economic growth and fast becoming a major global manufacturing base for electronics, textiles, and renewable energy."

"Discussions will also highlight positive developments for the UK’s financial services sector, as the government backs Vietnam’s efforts to establish its first International Finance Centre in Ho Chi Minh City. The swift removal of pharmaceutical barriers and progress on financial and energy collaboration show the government is delivering quick wins through targeted, agile interventions, advancing the key goals of the newly launched Trade Strategy," Alexander added.

Miles Celic, CEO of the financial industry advocacy group TheCityUK, said, "There is great potential for British firms and other international investors in Vietnam; it is a rapidly growing market with increasing demand for sophisticated financial products. There are also mutual benefits to be gained through sharing expertise in areas such as green finance, innovation, and digital transformation."

"We’ve been working closely with the UK government and British Embassy in Hanoi to help lay the groundwork for the development of an international financial and business centre in Ho Chi Minh City and Danang and are very supportive of the government’s commitment to support its creation and its contribution to Vietnam’s economic growth and net-zero agenda," said Celic.

VIR