Stronger R&D focus in sight for Vietnam's pharmas

Most local pharma firms hold the research on new drugs as their predominant strategy.

A shift from pharmaceutical production to a more research-based industry could likely happen to Vietnam, as local companies start to invest in R&D activities to build up infrastructures that meet international standards, according to a report from Fitch Solutions.

The government’s efforts are expected to go some way towards improving the country’s manufacturing base, but the vast majority of local production will remain focused on cheap generic drugs given their limited technological capabilities. Thus, Fitch expects that it will take a long time before the country can become self-sufficient with its pharmaceutical supply.

“With 160 factories meeting World Health Organization-Good Manufacturing Practice standards, the domestic drug output is able to meet 45% of the demand, whilst the rest must be imported,” the report stated.

Foreign medicines could still likely dominate in the near future, but a national survey of local pharma firms in 2017 revealed that 83% of those surveyed ranked the research of new drugs as their predominant strategy.

The government's support for the local pharma industry will remain steadfast, in part driven by the authorities' push to meet domestic healthcare needs, the report stated.

The ongoing community transmission outbreak has sped up the vaccine timeline for Vietnam. On 18 February 2021, Vietnam’s health ministry approved the import of 204,000 doses of COVID-19 vaccine to stop the spread of the virus.

Prime Minister Nguyen Xuan Phuc stated that "importing COVID-19 vaccines should be a foremost priority of the government", whilst calling for research progress on domestic vaccines as well.

“The government is further gearing up to self-finance its vaccine programme by reducing its reliance on international funding. The aim is to achieve mass vaccine production in the country through government-supported investments in manufacturing infrastructure and technology,” Fitch said.