Vietnam Drug Sector Facing Modernisation

Pharmaceutical companies face a number of challenges in the Vietnamese market, including low per capita drug spending, at just US$6 in 2003, as well as biased and poorly enforced regulations. Copying is rife in Vietnam, and an important factor in the government's attempts to restrain drug spending. Officials recently urged 187 drug companies operating locally to comply with new price controls, pledging enhancements to drug registrations in return.

Despite these tough operating conditions, there are some grounds for optimism, given the country's high rate of economic growth and the region-wide shift towards improved standards of regulation. The ASEAN trade bloc's initiative to harmonise intellectual property protection according to the principles of the ICH and WTO could also boost intra-regional trade, acting as a catalyst for development.

A further likely driver of future growth is government investment in the biotech sector, which has been increased with some success among Vietnam's regional neighbours. Such a move would require a significant improvement in intellectual property standards. Meanwhile, leading local drugmaker Vinapharm continues to expand production, and the creation of a new joint venture with Chinese pharmaceutical concerns is testament to the sector's accelerating development.