Luke Treloar, Director, Strategy, National Head of Healthcare & Life Science, KPMG in Việt Nam and Cambodia speaks at a dialogue in Hà Nội on Tuesday.  — VNS Photo Thanh Hải

HÀ NỘI — Việt Nam’s innovative pharmaceutical industry has the potential to create value for the nation. Despite the challenges of the regulatory environment, there are many opportunities offered by Việt Nam’s resources and workforce, participants heard at a dialogue in Hà Nội on Tuesday.  

The event, entitled “Unlocking world-class healthcare in Việt Nam: The time is now” was jointly organised by KPMG Vietnam in collaboration with Pharma Group with the participation of representatives from the ministries, embassies, companies from start-ups to multinationals in Việt Nam.

At the multi-stakeholder dialogue, experts discussed opportunities to realise the full potential of the healthcare sector in Việt Nam, especially how to shape an enabling, predictable long-term business environment that in turn improves patient access and fully yields the value that an innovative pharmaceutical industry can bring.

Addressing short-term challenges in key legislation, such as issues relating to Certificate of Pharmaceutical Product, Marketing Authorisation extension in the Circular guiding Drug Registration (Circular 32) and ensuring execution of existing regulations such as Price Negotiation mechanism for brand name medicines as regulated in Tender Circular (Circular 15), will ensure opportunities are unlocked as fast as possible.

Also at the event, KPMG Vietnam launched its latest Report on Value of Innovation which examined the current and potential benefits that the innovative pharmaceutical industry could bring to Việt Nam.

The report said that the Government of Việt Nam should consider implementing targeted policies and reforms in a wide variety of areas, from investment incentives and legislation to education and training. Thus, the Government of Việt Nam is well-positioned to promote growth in the economy through targeted and informed policies, and collaboration with industry stakeholders. These factors will be crucial in developing a dynamic and vibrant future for both the industry and the nation as a whole.

The report also suggested key policies for Việt Nam in the coming years, including continuing to prioritise the pharmaceutical industry on a national level; establishment of a comprehensive legal and regulatory framework and dedicated support institutions; introducing incentives to drive investments into the industry; increasing emphasis on industry-focused education and training; promoting health innovation and improving health financing.

“KPMG is excited and delighted to work on this exciting report. This industry touches all of our lives. Expanded access to cutting-edge medicines and quality care, and sustainable health financing will ensure that Việt Nam meets its ambitious development goals," said Luke Treloar, Director, Strategy, National Head of Healthcare & Life Science.

According to the latest statistics of the Drug Administration of Việt Nam, as of August 2019, Việt Nam has approximately 184 local and foreign pharmaceutical manufacturers operating in the market, of which 225 manufacturing sites qualified GMP-WHO. Most of these companies produce generics for local consumption. Ninety per cent of the Active Pharmaceutical Ingredients (APIs) for these products come from imported sources, primarily China and India.

Going forward, macro conditions and expanded consumer spending power are expected to help maintain a similar level of year-on-year growth through 2040. If the Vietnamese market can maintain this growth pattern, the total industry value could reach and exceed US$34.1 billion by 2040. This value, if measured today, would rank Việt Nam as a top-25 global market. — VNS