VietNamNet Bridge – Former health minister Pham Song spoke to Nong thon Ngay nay (Countryside Today) newspaper about Government measures to curb pharmaceutical price hikes.

Why is it so difficult to control rises in the price of medicines?

However, they did say that the price of drugs in State hospitals was still less than on the open market. That said, it will be difficult to prevent prices going up for a number of reasons.

The chief reason is that we have to import 50 per cent of medicines and 90 per cent of the materials used in hospitals. If the cost of these goes up, there is little we can do.

The pharmaceutical industry blames price hikes on the rising cost of oil and petrol, as well as the depreciation of the dong against the dollar. Is this fair?

Of course, increasing costs means that medicines will cost more. Although we try to prevent price fixing, it is difficult to control.

Does the price-stabilisation fund have any effect?

I think it is difficult to say. The health ministry has already set up a price-stabilisation fund and has in reserve about 204 kinds of compounds used to make drugs.

In the long term, we need to make more drugs domestically. It is also worth bearing in mind that according to international research, the pharmaceutical sector is extremely lucrative.

The sector spends a lot on advertising. Does this affect prices?

At present, the cost of advertising is about 30 per cent of price of pharmaceuticals. Prescription drugs also cost more.

Should the Strate fix prices?

Health departments in major cities such as Ha Noi and HCM City investigate price rises and fine firms that hike prices unreasonably.

I think the best way to control prices is to invest more in the sector. When the cost of electricity goes down, so hopefully will the price of medicines.

It will take about five years for 50 per cent of the current 180 pharmaceutical companies to meet the Good Manufacturing Standard. Once that happens, prices will be more stable.

VietNamNet/Viet Nam News