Vietnam Urges Multinational Sector to Restrain Pricing

Vietnam's Pharmaceutical Management Department has urged international drugmakers not to increase selling prices without prior permission from the Health Ministry. Domestic drug producers who export overseas will also be obliged to comply with the new regulations. Officials claim that 85 of the estimated 187 drug companies operating locally have already submitted their pricing policy for 2005, with roughly 60 apparently pledging not to increase prices.

The officials claim that in return for pricing restraints, authorities will speed up the registration of new ethical products, and also increase transparency in local generic drug production. The country's Marxist government has previously criticised drug prices that it believes to be high, while observers cite a lack of clear policy and effective competition regulations. Regulatory conditions are widely considered to be inadequate in Vietnam, where the strong presence of counterfeit drugs and copies is set to limit sector growth to around US$435mn at consumer prices by 2007.