At a healthcare conference hosted by VIR on September 25 in Hanoi, experts pointed out that the market holds many unique characteristics, with a 10 per cent growth rate and an increasing GDP, positioning Vietnam as a key market of interest for foreign healthcare and pharmaceutical companies.

Dr. Nguyen Viet Nhung, vice chairman of the Vietnam Medical Association

“Vietnam has two highly promising areas for international cooperation, which are diagnostic technology and new treatment drugs, including chemical drugs, cellular products, gene therapies, and biological products,” said Dr. Nguyen Viet Nhung, vice chairman of the Vietnam Medical Association.

Dr. Nhung noted that Vietnam has huge advantages in its healthcare data system, but the data has not been fully exploited. “Vietnam may not have advanced technology yet, but it has a large market, with 93 per cent of the population covered by health insurance. We can partner with foreign entities to develop this further,” said Nhung.

“ Vietnam should create healthcare collaboration programmes to attract investors, producing significant outcomes not only for Vietnam but also for humanity, because to 'go far must go together’. For foreign pharmaceutical companies that need to conduct clinical trials, Vietnam is fully capable, with the necessary infrastructure and human resources, as we have patients, an essential group for clinical trials, especially for the latest innovations,” added Nhung.

Luke Treloar, head of infrastructure, government, and healthcare at KPMG Vietnam

Luke Treloar, head of infrastructure, government, and healthcare at KPMG Vietnam, emphasised that to attract investment and realise Vietnam's potential as a regional healthcare innovation hub, a priority heatmap highlighting resource attraction is necessary.

“Vietnam has the opportunity to learn from other markets and apply our domestic technologies to address issues like fraud in production. In terms of manufacturing, Vietnam is starting to develop certain local products. The next step is technology transfer to jointly develop both global and local technologies, followed by entering the research and development stage, conducting clinical trials, and generating intellectual property,” said Treloar.

“The ultimate goal of a market is to reach the final stage where you generate by-products and intellectual property that deliver higher returns than the initial investment. Vietnam needs to study global cases to shorten this cycle and take multiple steps simultaneously,” he added.

However, Vietnam's journey to attract investment in the healthcare and pharmaceutical sector still faces challenges due to restrictive policies.

Bui Thi Viet Lam, Vietnam's country representative for USABC

Bui Thi Viet Lam, Vietnam's country representative for USABC, said, “The lengthy process for pharmaceutical companies to invest and access the market significantly reduces the market's appeal. In reality, it takes nearly four years for a new drug to enter the Vietnamese market after its global debut, and an additional 2-3 years to be included in the list of drugs covered by health insurance. On average, it takes 5-7 years for Vietnamese patients to access new medicines, making it difficult to attract corporate investment. Therefore, I expect amendments to the 2016 Law on Pharmacy will address these bottlenecks.”

The USABC representative also pointed out two key trends that foreign companies are focusing on, which could serve as catalysts for opening pharmaceutical manufacturing plants in Vietnam.

First, policy planning. A consistent and predictable domestic policy environment is of utmost importance to foreign healthcare and pharmaceutical companies, as planning in this industry is medium- to long-term. Commitments to creating a transparent investment environment need to be clearly outlined in circulars, decrees, and policies.

Second, the simplification of administrative procedures. Bolder steps could be considered, since ambitious goals require greater courage and different approaches. Vietnam might consider adopting a reference or recognition mechanism for licensing and renewing drugs to facilitate the quicker acceptance and circulation of pharmaceutical innovations.

“The characteristic of the healthcare and pharmaceutical market is that no one waits for anyone, and the environment evolves rapidly. Southeast Asian countries like Malaysia and Indonesia are hurriedly introducing incentive policies to attract investment in healthcare and pharmaceuticals. Thus, we need to carefully assess whether what Vietnam is doing is attractive enough to draw in investors,” said Lam.