The Ministry of Health (MoH) has signed a memorandum of understanding (MoU) with the Ministry of Industry and Trade (MoIT) to expand the pharmaceutical industry and devise measures to stabilise the pharmaceutical market.

Vietnam now has 800 pharmaceutical trading companies, 439 foreign pharmaceutical companies and nearly 40,000 retail pharmacies. Domestic drugs account for more than 50 percent of the supply. However, the country still has to import 50 percent of its drugs and 90 percent of drug ingredients from foreign countries.

At the signing ceremony in Hanoi on November 11, Minister of Health Nguyen Quoc Trieu said that the two ministries have agreed to coordinate in drug production, circulation and distribution. Mr Trieu added that better implementation of the MoU will help the pharmaceutical industry evolve into a key economic and technical sector.

Under the MoU, the MoIT will continue to conduct scientific research and consult MoH experts in selecting projects. The MoH will identify necessary raw materials and encourage domestic producers to buy them for manufacturing drugs domestically.

The MoU also determines responsibilities and functions of each ministry in drug distribution as well as the rights of foreign drug companies involved in the process.

Source: VOV