Pharmaceutical Industry Imports 90% of Raw Materials

In recent times, the pharmaceutical industry in Vietnam has continued to face numerous difficulties and challenges.

Domestic pharmaceutical production still heavily relies on imported raw materials, accounting for nearly 90% - Graphic: Huong Giang

Sharing about the current state of pharmaceutical production, Mr. Vu Tuan Cuong – Director General of the Drug Administration of Vietnam (Ministry of Health) – stated that the industry is still struggling with many difficulties.

First of all, domestic drug manufacturing lacks high competitiveness and sustainability: Most pharmaceutical facilities only invest in production lines for simple dosage forms, while investment in and application of modern technologies for advanced dosage forms remains limited.

Notably, domestic raw material supply for drug production still depends largely on imports, accounting for nearly 90%.

“This dependence on imported ingredients – especially during global crises like the COVID-19 pandemic – makes the pharmaceutical industry vulnerable to external factors such as exchange rate fluctuations or supply chain disruptions. Additionally, import-related costs make Vietnam’s pharmaceutical export prices about 20–25% higher than those of China and India,” Mr. Cuong explained.

Moreover, the chemical and petrochemical industries are underdeveloped, failing to provide a foundation or ecosystem to support the pharmaceutical chemistry industry and meet the demand for drug ingredients. Although a pharmaceutical chemistry development program has been implemented for years, its results have yet to meet expectations.

There is also a shortage of skilled personnel in key areas such as clinical pharmacy, quality management, and new drug research and development.

The implementation of clinical pharmacy activities at hospitals remains challenging due to lack of adequate attention, underappreciation of the clinical pharmacist’s role in treatment, and lack of funding for clinical pharmacy programs.

Access to medication is also affected by policies related to procurement, bidding, and health insurance reimbursement.

The Director General also noted that irrational drug use persists, and over-the-counter drug sales without prescription remain common.

Source: Lao Dong Newspaper
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