Overview of Vietnam's pharmaceutical industry: Great potential, quality problem

In recent years, the Vietnamese pharmaceutical industry has developed strongly, not only meeting domestic drug demand but also having great potential in exporting pharmaceuticals.

According to statistics from 2023, the Vietnamese pharmaceutical market is worth about 7.2 billion USD, with a compound annual growth rate (CAGR) of 10.6%. This shows a positive picture for the pharmaceutical industry, opening up great opportunities for domestic manufacturing enterprises and export opportunities to the world .

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Vietnam's pharmaceutical industry has witnessed growth in domestic production, with the strong development of pharmaceutical factories meeting GMP-WHO standards.

By 2023, the country will have about 238 pharmaceutical factories meeting GMP-WHO standards, producing nearly 70% of the drugs consumed domestically. These factories not only provide essential drugs but also meet international quality standards, helping to increase consumer confidence in domestic pharmaceutical products.

In addition, the increase in the number of wholesale and retail drug stores over the years has made it easier for people to access necessary medicines.

By 2024, Vietnam will have approximately 5,144 wholesale and 65 retail drug stores to meet the growing demand for drugs. With more than 20,000 drugs with valid registration numbers, the Vietnamese pharmaceutical industry is gradually building a comprehensive and modern drug distribution system.

Despite many achievements, the Vietnamese pharmaceutical industry still faces many difficulties in controlling drug quality.

Despite the fact that more than 43,000 drug samples are tested annually, the rate of substandard drugs still exists. Although the rate of substandard products is very low (0.53%), the problem of counterfeit drugs and drugs of unknown origin remains a major threat. Counterfeit drugs not only endanger people's health but also undermine confidence in the health system.

In 2024, 23 counterfeit drugs and medicinal materials were detected, and 65 substandard drugs were recalled. These figures reflect the reality that the Vietnamese pharmaceutical industry is still facing the problem of counterfeit drugs entering the legal distribution system.

Counterfeit drug production and distribution facilities do not comply with regulations on storage and origin, increasing the risk of unsafe drug use for consumers.

To address the problem of counterfeit drugs, stronger measures from the authorities are needed. The Ministry of Health and relevant agencies need to continue to improve the effectiveness of drug quality inspection and supervision. Counterfeit drug recalls need to be carried out more promptly and decisively, and establishments that violate the law need to be strictly punished.

In addition, propaganda and education on counterfeit drug prevention should be strengthened. Consumers need to be equipped with information to identify counterfeit drugs, thereby raising their vigilance and avoiding the use of products of unknown origin. Wholesale and retail establishments also need to fully comply with regulations on product origin and quality.

In particular, there needs to be adjustments in the legal regulations on handling counterfeit drugs. The current penalties are not strict enough to deter the production and trade of counterfeit drugs. Therefore, increasing the penalties and improving legal regulations will be effective measures to prevent this situation.

To ensure the quality of domestic drugs, it is necessary to invest heavily in the State's drug testing system. Testing centers need to be upgraded in terms of facilities, equipment and professional capacity to meet the increasingly high requirements for drug quality monitoring. This will help to strictly control the origin and quality of drugs, minimizing the situation of counterfeit and poor quality drugs entering the market.

The Vietnamese pharmaceutical industry has made great strides, but there are still many challenges ahead. To continue to develop sustainably, the pharmaceutical industry needs to constantly innovate, improve product quality and improve management.

Along with that, authorities need to further tighten legal regulations, especially on counterfeit drugs and drug quality, to protect people's health and build a healthy pharmaceutical business environment.

According to statistics from the Drug Administration of Vietnam, in 2023 - 2024, this agency conducted more than 80 inspections and imposed administrative fines with a total amount of over 2.5 billion VND. During the inspection process, many cases related to counterfeit drugs were discovered in Hanoi, Ho Chi Minh City, Thanh Hoa... In particular, the counterfeit drug case in Thanh Hoa was strictly handled thanks to effective coordination between the Ministry of Health and the Ministry of Public Security.

Deputy Minister of Health Do Xuan Tuyen emphasized that we always put people and patients at the center, ensuring that they have access to good products, of the right quality, and at reasonable prices. However, he also frankly pointed out the paradox that despite having full legal regulations, there still exists a situation of poor quality products, even counterfeit goods, infiltrating the market.

According to the Deputy Minister, the cause lies in three factors: the legal system, although relatively complete, is not yet perfect in some aspects; enforcement is still loose; and especially the awareness of law compliance of a part of businesses and consumers is still limited.

Source: https://baodautu.vn/toan-canh-nganh-duoc-viet-nam-tiem-nang-lon-bai-toan-chat-luong-d280901.html