Deputy Prime Minister Nguyen Thien Nhan has called for further investment in Viet Nam's pharmaceutical sector, especially for modern pharmacy methods and for projects capitalising on the potential of local pharmaceutical resources.

Nhan made the call yesterday at an investment orientation conference for the pharmaceutical sector held by the Ministry of Health.

"The health sector should make a survey of drug needs and collaborate with relevant ministries and sectors to propose attractive investment policies for the pharmaceutical field, especially for land, capital and a focus on chemo-pharmaceutical technology," stressed Nhan.

The first event of its kind aimed to create a chance for local and foreign investors to talk about State policies and investment opportunities, and exchange management experience, enterprise ideas and scientific co-operation.

"We need specific policies and measures to encourage investment in key areas of the pharmaceutical sector, such as modern pharmaceutical methods, the chemo-pharmaceutical material industry, research and development, Bio-Availability and Bio-Equivalent, and vaccines," said Health Minister Nguyen Quoc begin_of_the_skype_highlighting     end_of_the_skype_highlighting Trieu.

"Priority should be given to creating a clear, favourable and transparent environment for local and foreign investors," added Trieu.

The health sector is also seeking local or foreign investment for eight projects including Mekophar's project to produce Cephalosporin antibiotics, Ampharco's project to produce raw materials for Cephalosporin antibiotics, and some vaccine production projects and pharmaceutical packages.

According to statistics of the Drug Administration of Viet Nam under the ministry, 98 of the 178 drug manufacturers in Viet Nam have met WHO-GMP standards (the World Health Organisation's Good Manufacturing Practices).

Drug expenditure per capita has increased from US$9.85 in 2005 to $19.77 in 2009. Local vaccines and biological product producers can provide 10 vaccines to be used in the national expanded immunisation programme.

In 2009, local pharmaceutical production value reached $831.2 million, an increase of 16 per cent in comparison with the previous year. Locally produced drugs met 50 per cent of the nation's need.

Twenty-seven foreign invested pharmaceutical projects have a total registered capital of $302 million. Of the projects, 24 are drug production projects and three are drug storage projects.

"Investment capital in the pharmaceutical sector hasn't kept pace with the speed of growth. There has been a huge investment gap in Viet Nam's pharmaceutical sector," said Deputy Minister of Health Cao Minh Quang.

"Raw materials for chemo-pharmaceuticals, raw materials extraction, GMP packaging factories and the pharmaceutical equipment industry are areas that should be encouraged for investment from now to 2020," said Quang.

General Director-Chairwoman of the Management Board of Traphaco Joint Stock Company Vu Thi Thuan said Viet Nam had a long history of traditional medicine and a huge potential in traditional medicine materials. However, the field of traditional medicine had not received proper investment.

"The country only has four chemo-pharmaceutical companies among hundreds of pharmaceutical firms. Mekophar chemo-pharmaceutical company is the only one that produces antibiotics in Viet Nam, with ampicilin and amoxicillin as its main products," said Deputy Minister of Industry and Trade Do Huu Hao.

"The pharmaceutical sector hasn't attached special importance to developing raw pharmaceutical materials for the production of medicines. More than 90 per cent of raw materials for drug production are imported," said Hao.

According to Hao, the chemo-pharmaceutical industry should focus on production in fields such as antibiotics, vitamins, pain-killers and febrifuges in the next decade. Medicines should also be created for heart disease, diabetes, Tuberculosis, dengue fever and preventive drugs.

The health sector asked the Prime Minister to revise the list of special incentive investment projects and incentive investment projects in Decree 108/2006/ND-CP.

The sector also requested the leader to add investment projects in the areas of pharmaceutical packaging production, production of chemo-pharmaceutical materials from natural chemical compounds, production equipment, machinery for pharmaceutical production, vaccine production, and establishment of Bio-Availability and Bio-Equivalent centres for generic drugs to the State's priority investment list. 

From Vietnamnews