Creating an innovative environment in the pharmaceutical industry

The pharmaceutical industry has seen positive growth, with per capita drug spending previously being just $0.50 and now reaching $75. However, the industry still has some limitations.

Difficulties on many sides

In the discussion session “Creating an innovative environment for the pharmaceutical industry” at the “Innovation – Medicine for the development of the pharmaceutical industry” workshop organized by Investment Newspaper on September 25, Mr. Le Van Truyen, former Deputy Minister of Health, shared that over the past 30 years, the pharmaceutical industry has had positive growth, with drug spending per capita previously only 0.5 USD and now reaching 75 USD. However, this industry still has some limitations.

Delegates attending the discussion session.

Firstly, according to the former Deputy Minister of Health , the technical facilities of the pharmaceutical industry are still limited. In the era of industry 4.0, the digitalization process of the pharmaceutical industry is very slow.

In addition, human resources for research and development are still quite modest. Currently, the pharmaceutical industry is developing biological drugs, while Vietnam mainly has chemical pharmaceutical factories. These are two completely different issues, enterprises cannot immediately develop or acquire biological drug production.

In addition, research and development (R&D) facilities are too scattered, there is no national-scale facility for R&D work, each enterprise has an R&D department with only a few people doing research. Not to mention the institutional issue, after the enterprise has R&D results, how is the mechanism for transferring development results?

Not to mention, the financial capacity of domestic pharmaceutical enterprises is limited. The rate of R&D investment is low, with this rate it is impossible to develop. When investing in R&D with a large amount of money, how are the costs calculated, how many products can be made to bring to the market… This is a big challenge for enterprises.

In particular, the change in market structure affects the drug product portfolio on the market. Currently, only 40% of generic drugs are produced by local enterprises, so how is the transition going?

With the existing shortcomings in the pharmaceutical industry, businesses are expecting great changes in the current amendment and supplementation of the Pharmaceutical Law.

Regarding this, according to Mr. Ta Manh Hung, Deputy Director, Department of Drug Administration, Ministry of Health, the Draft Law on Pharmacy amended and supplemented this time has 5 major policy groups to further strengthen the timely and sufficient supply of quality drugs for people's disease prevention and treatment needs.

Mr. Ta Manh Hung spoke at the workshop.

However, according to Mr. Hung, the pharmaceutical industry is very special, directly related to people's health and lives, so we need to be careful. With other industries, we can cut down on administrative procedures and conduct post-inspection..., but that is not the case with drugs.

Drug licensing must comply with all procedures. Vietnam and other countries do the same. It is not possible to just license and then revoke it because it is very dangerous.

Regarding the Ministry of Health's efforts in ensuring drug supply, according to Deputy Minister of Health Do Xuan Tuyen, this agency is submitting to the National Assembly for consideration with the orientation of attracting investment in developing technology research and development activities, production or technology transfer to produce pharmaceutical substances, new drugs, original branded drugs, rare drugs, first generic drugs, high-tech drugs, vaccines and biological products, drugs made from blood and plasma, etc. of foreign pharmaceutical corporations in Vietnam.

According to the leader of the Ministry of Health, when implementing this goal, Vietnam will proactively and sustainably develop domestic production while promoting export activities to advanced markets.

Regarding medicine, first of all, there must be raw materials to make medicine, and with pharmaceutical chemicals, Vietnam is importing 80%, but has great potential in terms of raw material areas.

Human resources and people in the pharmaceutical manufacturing industry are also very ready. According to the revised regulations, the Ministry of Health proposed priorities for pharmaceutical production in Vietnam, including priority in granting distribution licenses, priority in the list of issued drugs, etc.

“We must promote research and innovation in all areas: in production facilities and production lines, application of technology in clinical trials, especially innovation in the effective use of drugs and biological products…”, Deputy Minister Do Xuan Tuyen emphasized.

Highly appreciating the revised directions in the Pharmacy Law, creating conditions for businesses to develop, Mr. Trinh Luong Ngoc, a member lawyer of Vilaf, said that the revised Pharmacy Law has positive impacts in two directions.

Firstly, simplifying administrative procedures, granting circulation licenses, etc. makes it easier for businesses to register pharmaceutical products and bring products to market faster, which helps improve drug prices and people can access high-quality drugs.

Secondly, the fact that foreign enterprises can produce and transfer products to Vietnamese enterprises means that it encourages foreign investors to work more with domestic enterprises. This is an opportunity for domestic enterprises to learn and produce new products.

“Foreign investors do not only focus on investment incentives. When deciding to invest, they are interested in coordination and resolving problems between units, between the central and local governments, because the project can take years to implement,” Mr. Ngoc emphasized.

Attracting foreign investment in the pharmaceutical industry

One of the focuses in amending the Pharmaceutical industry's institutions is to promote foreign investment attraction. Mr. Darrell Oh, Chairman of Pharma group, Eurocham - the representative unit of 21 member companies from European countries in Vietnam, said that the important issue is the policy factor, not only the Ministry of Health but also other agencies related to foreign direct investment to promote investment activities.

Professor Nguyen Anh Tri spoke at the workshop organized by Investment Newspaper.

International resources can help reduce the burden of drug access, enhance Vietnam's regional reputation in the health sector, and even help Vietnam become the choice of patients in Southeast Asia.

Many countries are also amending their pharmaceutical policies to enhance innovation and attract foreign investment in the pharmaceutical industry.

For example, recently, Japan has a strategy to promote innovation, help make medicine available faster to serve patients, and promote scientific research. Japan invests 7 billion USD each year in developing the pharmaceutical industry.

The Chairman of Pharma Group sees three key elements that Vietnam can learn from. The first is a clear strategy, with a specific focus on innovation and the development of high-value products and services.

Second, simplify procedures through policies and attract investment. Third, there is a specific institution, with a national steering committee, facing a large workload, ministries and branches need to coordinate with each other.

Regarding policies to attract foreign investment in the pharmaceutical industry, Mr. Vu Van Chung, Deputy Director of the Foreign Investment Department, Ministry of Planning and Investment, said that foreign investment in the healthcare sector in Vietnam currently has only about 160 projects, with a signed value of about 1.8 billion USD and is present in 13 provinces and cities.

“We appreciate the presence of large pharmaceutical companies in the Vietnamese market. However, compared to other sectors, investment in the pharmaceutical industry is still very modest as Vietnam has attracted more than 40,000 foreign investment projects,” said Mr. Chung.

Some other characteristics of foreign investment activities in the pharmaceutical industry in Vietnam include that most businesses are concentrated in Singapore, South Korea, and Taiwan (China), while the world's leading medical centers such as the US and Europe are almost non-existent.

Investment projects are in 13 locations, but mainly focus on areas with good socio-economic conditions such as Hanoi, Ho Chi Minh City, Da Nang... This also shows that good socio-economic conditions affect foreign investment in the health sector.

The representative of the Ministry of Planning and Investment said that the incentives for investment in the medical and pharmaceutical industry are at the highest level. The Ministry will continue to take note to have more detailed incentives, especially for the industries that are especially encouraged.

In addition, the Ministry of Planning and Investment expects that when the medical and pharmaceutical development centers are formed, currently planned in Bac Ninh, Long An, Thai Binh... the localities are also very determined, discussing with us to review the laws..., then they will receive large investment projects.

To anticipate many future development opportunities and be ready to receive and attract investment from modern pharmaceutical industries in the world in accordance with the orientation and goals of the pharmaceutical industry, the Ministry of Health is also reviewing and amending the Pharmacy Law.

Talking about current investment in the pharmaceutical industry, according to Professor Nguyen Anh Tri, member of the National Assembly's Committee on Social Affairs, current investment in the pharmaceutical industry is not commensurate with the existing potential.

Therefore, to improve the effectiveness of health care for the people as well as promote the development of the pharmaceutical industry according to Professor Nguyen Anh Tri, we must overcome difficulties, take shortcuts, take advantage of the world's available achievements, thereby promoting the internal strength of Vietnamese enterprises.

Source: https://baodautu.vn/kien-tao-moi-truong-doi-moi-sang-tao-nganh-duoc-d225839.html