The landscape of Vietnam's pharmaceutical sector is undergoing a profound metamorphosis, driven by escalating healthcare expenditures and an expanding middle-class demographic. This article embarks on a journey to unravel Vietnam's strategic roadmap, delineating the trajectory until 2030 and envisioning the horizon stretching out to 2045.

In October, Vietnam's Prime Minister issued Decision NO. 1165/QD-TTg, endorsing the 'National Strategy for Development of Vietnam’s Pharmaceutical Industry to 2030,' with a visionary outlook extending to 2045. This strategic move reflects a broader initiative aimed at nurturing the pharmaceutical sector in response to the expanding middle class and the subsequent rise in healthcare expenditure.

However, the pharmaceutical realm is inherently intricate. Ensuring the highest quality standards is paramount to safeguarding the well-being of Vietnamese consumers. This necessitates rigorous monitoring and regulation as the industry evolves, presenting numerous opportunities for foreign expertise to contribute.

Furthermore, the advent of next-generation free trade agreements is expected to unlock investment prospects by dismantling market entry barriers. For instance, the European Union Vietnam Free Trade Agreement (EVFTA) eliminated over half of the tariffs on pharmaceutical imports from the EU upon its implementation.

Nevertheless, both new entrants and established foreign firms operating in Vietnam's pharmaceutical landscape must possess a deep understanding of industry dynamics to navigate effectively amidst evolving trends and regulations.

The objectives of Vietnam's pharmaceutical industry are outlined in the National Strategy for Development of Vietnam’s Pharmaceutical Industry to 2030, setting forth fundamental goals that serve as guiding principles for the sector's advancement. These objectives form the cornerstone of the strategy, providing a framework for its development. They encompass:

• Ensuring access to essential medicines for Vietnamese citizens at affordable prices.
• Enhancing the country's research capabilities and fostering the production of original brand-name drugs.
• Establishing Vietnam as a regional hub for the manufacturing, processing, and innovation of brand-name pharmaceuticals.
• Elevating the country's pharmaceutical regulatory system to Maturity Level 4, in accordance with World Health Organization standards, signifying advanced performance and continuous improvement.
• Harnessing the potential of medicinal herbs, drugs, and products to create high-quality and high-value goods.
• Promoting the domestic production of medicinal raw materials to reduce dependency on imports. Optimizing medication usage to ensure efficient and effective healthcare delivery.

The outlined objectives can be further detailed into specific targets as follows:

• Ensure proactive and prompt provision of 100 percent of drugs for disease prevention and treatment needs.
• Manufacture 80 percent of drugs consumed domestically, constituting 70 percent of the market value of all drugs sold in Vietnam.
• Produce 20 percent of the raw materials essential for domestic drug production.
• Generate adequate vaccines to meet 100 percent of expanded vaccination demand and 30 percent of service vaccination demand.
• Develop a minimum of 100 original brand-name drugs, vaccines, and/or biological products.
• Establish eight areas for sustainable exploitation of natural medicinal herbs and between two and five areas for large-scale medicinal herb production.
• Standardize medicinal ingredients for domestic drug production, including extracts, essential oils, and medicinal powders.
• Achieve World Health Organization (WHO) Maturity Level 3 or higher, indicating a stable and well-functioning regulatory system.
• Ensure 100 percent of drug trading establishments adhere to good practice standards.
• Ensure all drug testing, vaccine, and biological product testing facilities meet good laboratory practice (GLP) standards.
• Have at least 20 percent of drug manufacturing facilities meet EU-GMP, PICs-GMP, or equivalent standards.
• Monitor and manage all drugs in the market for effectiveness and safety according to Ministry of Health regulations.
• Attain a ratio of 1 person per 100 inpatient beds and two people per 1,000 prescriptions dispensed to outpatients with insurance cards in clinical pharmacy.
• Implement complete digital transformation within the pharmaceutical industry.
• Digitize information and data on drugs licensed for circulation in Vietnam and add them to the Pharmaceutical Industry Data Bank.
• Interconnect 100 percent of drug manufacturing, wholesale, import-export, and retail establishments nationwide.
• Deploy artificial intelligence in pharmaceutical industry activities.
• Achieve a ratio of 4 pharmacists per 10,000 people, with pharmacists trained in clinical pharmacy constituting at least 20 percent.

With these targets in mind, Vietnam's pharmaceutical industry is projected to reach a value of US$20 billion by 2045, with advancements in drug testing, distribution, and clinical pharmacy comparable to those of leading nations.