Medicine Market: Sustainable Development

In comparison with the previous year, the production, delivery, and retail of medicine in 2006 generally improved. The medicine market was able to provide sufficient, quality medicine for citizens, both for prevention and cure.

Doctor Cao Minh Quang, Deputy Minister of Department of Health said medicine scarcity, speculation and sudden price increase were controlled, only occuring in a few areas. The consumer price index (CPI) showed medicine prices rose 4 per cent in 2006, compared to a rise of 6.6 per cent in overall CPI.

 

By the end of 2006, there were 178 enterprises producing medicine nationwide, 110 factories making new drug, 65 factories obtaining good medicine production (GMP) standard, and 83 enterprises certified to produce medical drugs.  

 

The growth of medicine business and production improved the protection of and care for citizen’s health. Per capita medicine spending was US$11.23, increased 14 per cent from 2005. According to a market survey conducted by IMS organization, Vietnam's medicine market's growth rate was exceptional among countries in region. By 2008 the total value of Vietnam medicine market is estimated to reach US $1 billion, and growth should remain at 15 per cent in subsequent years.

 

Of the total of 1500 medicines registered for circulation in Vietnam, 773 are locally produced, 52 per cent of the total. Of the 27 pharmacological groups certified by the WHO, 20 produce medecine locally. The industry expects local production to meet 60 per cent of Vietnamese’s medicine demand by 2010.

 

Foreign investment in the medicine industry is low. At present, 38 projects in the industry have attracted foreign investment, of which 22 are operating, with registered capital over US$255 million. In comparison to 5,563 invested projects in all fields with total registered capital over US$48,7 billion, foreign investment in this industry is very small. However, foreign investors positively contributed to developing the local medicine industry.

 

At present, the 65 factories producing medicine to Vietnam’s GMP standards include all 22 factories with foreign capital, and their turnover was 34.5 per cent of total income of GMP certified factories nationwide, and 29.7 per cent of total income from local factories in this industry

 

Targets of medical economy	2005	2006	Growth
I. Business and Production Results
1. The total money of medicine usage (US$1000)	817,396	956,353	16.99 per cent
2. Medicine value in local production (US$1000)	395,157	475,403	120.30 per cent
3. Imported medicine value (US$1000)	650,180	710,000	9,20 per cent
4. Exported medicine value ($1000)	17,656	19,744	11.99 per cent
5. Average medicine price per capita (US)	9.85	11.23	14.0 per cent
II. Medicine supply network
1. The number of enterprises doing medicine business	680	800	17.65 per cent
2. The number of direct medicine import enterprises	79	89	12.66 per cent
3. The number of medical foreign providers	270	320	18.52 per cent
4. The number of medical retailers nationwide	37,500	41,500	10.67 per cent
III. Medical production system
1. The total number of enterprises producing Medicine	174	178
2. The number of factories achieved GMP: - GMP ASEAN - GMP WHO	57	65 24 31	14.03 per cent
3. The number of factories achieving GLP	42	60	42.86 per cent
4. The number of factories achieving GSP	41	64	56.10 per cent
5. The number of factories registering for medicine circulation in market	12,349	14,097	14.15 per cent
IV. Activities for medical market stability
1. Consumption Price Index	8.4 per cent	6.6 per cent	Decrease 21 per cent
2. Medical price index	4.9 per cent	4.3 per cent	Decrease 12 per cent