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In January, Việt Nam’s exports soared to nearly $33.6 billion, with the fishery industry leading the way with high export numbers. — VNA/VNS Photo |
Việt Nam’s exports reached nearly US$33.6 billion in January, a 42 per cent surge over the same period last year and the highest level since April 2022.
According to a report by the Ministry of Industry and Trade, Việt Nam’s total imports and exports of goods in the first month surpassed $64 billion, up 38 per cent year-on-year.
The surge in exports was mainly driven by the agriculture-forestry-fisheries, and processing industries, which increased nearly 97 per cent and 38 per cent, respectively.
The export of phones and components also rose by over 56 per cent to nearly $6 billion in January.
Việt Nam’s agricultural products maintained their strong export performance, with coffee prices surging by more than 35 per cent and rice prices escalating by 33.5 per cent year-on-year.
The US remained Việt Nam’s largest export market, with recorded imports of $9.6 billion, while traditional export markets such as China, the EU, and ASEAN also showed growth.
Việt Nam’s imports in January totaled more than $30.6 billion, with China remaining the largest exporter at nearly $11 billion.
The trade balance continued to exhibit a surplus of $2.9 billion, with significant surpluses with the US and China.
The Ministry of Industry and Trade anticipated challenges for this year’s exports due to increased transport costs and escalating political tensions in the world.
The ministry plans to focus on stimulating domestic consumption, promoting production, and monitoring market developments to avoid shortages or disruptions in the supply of goods.
Vinfast to introduce right-hand drive EV models to Indonesian market
Vietnamese electric vehicle (EV) maker VinFast will introduce right-hand drive EV models to the international market for the first time as part of its upcoming participation at the Indonesia International Motor Show (IIMS) 2024 slated for February 15 – 25.
In a press release on February 7, the company said the move shows its strong dedication to making EVs accessible to everyone.
"VinFast is delighted to formally launch its brand in the Indonesian market at IIMS 2024. We aim to provide local customers with more eco-friendly transportation offerings, along with a commitment to accompany them throughout the electric vehicle ownership journey. We look forward to inspiring the market to explore the limitless potential of a modern and sustainable mobility future," Tran Quoc Huy, VinFast Indonesia CEO, said as quoted by the release.
With a population of 250 million people, Indonesia is the largest economy in Southeast Asia and one of the largest automotive markets in the region. It represents the next key market for the company and a strategic link in its global electric vehicle supply chain. VinFast previously announced an investment in the construction of a manufacturing plant in the country with an annual capacity of up to 50,000 EVs.
Ho Chi Minh City presses ahead with policies amid global headwinds
Despite facing global headwinds, Ho Chi Minh City, the country’s largest economic-financial centre that was hardest hit by the COVID-19 pandemic in 2021-2022, secured high growth in 2023, creating an essential prerequisite for the city to move ahead in 2024 and beyond.
Ho Chi Minh City bore the brunt of the COVID-19 pandemic, with its economy experiencing a contraction in 2021 before rebounding relatively strongly in the following year. However, before the economy could gather full steam, it faced global headwinds, including the economic downturn, pandemic consequences, strategic competition among major global powers, armed conflicts, the resilience and adaptation of developing countries, climate change, natural disasters, and epidemics.
The first quarter of 2023 witnessed the southern city secure gross regional domestic product (GRDP) of only 0.7%, the lowest among the five centrally run cities. Public investment is considered to be a driving force for economic growth, but in a difficult context, the city could only disburse about 4% of the allocated total.
In an effort to further spur economic growth, the municipal administration implemented a series of solutions, including increasing dialogues aimed at ironing out business snags, introducing policies aimed at stimulating consumption and tourism, promoting regional connectivity, and accelerating drastic administrative reform.
Those policies paid off as they helped the local economy to reverse the slowdown, with GRDP expanding by 5.87%, 6.71%, and 9.62% in the following three quarters of the year, ranking second among the five centrally run cities by the year’s end.
The strong economic recovery of Ho Chi Minh City, the country’s locomotive, has built up confidence in society, especially in other localities that were also grappling with global headwinds, said economic expert Dr. Tran Nguyen Dan of the University of Economics in Ho Chi Minh City.
Improving the efficiency of public services
In 2023, the city aimed to enhance the general efficiency of public services, promote administrative reform, and improve the investment environment. The view was that with poor public services, administrative activities had become stagnant and the investment environment was therefore difficult to improve.
According to Assoc. Prof., Dr. Vu Tuan Hung, deputy director at the Institute of Social Sciences in the Southern Region, public services revealed shortcomings in practice after the COVID-19 pandemic which created barriers hampering local development. When digital transformation was introduced, public services were required to make change in order to create a conducive investment environment.
However, deliberate policies later introduced along with the strict assessment of the efficiency of civil servants’ performance closely associated with their responsibility brought about good results. The rate of public investment disbursement increased considerably, rising from just 4% in the first quarter to 23% in the second quarter, 35% in the third quarter, and 60% in the last quarter of 2023. The southern city also attracted approximately US$3.4 billion in foreign direct investment (FDI) capital, accounting for more than 14% of the country’s total FDI figure.
Moreover, 2023 also saw Ho Chi Minh City break ground and put into operation a number of key capital infrastructure construction projects, including the Ring Road 3 Project, the An Phu intersection project, the Nguyen Van Linh - Nguyen Huu Tho intersection project, and National Highway 50 expansion project. It also reactivated several key bridge projects such as Vam Sat 2 and Long Kieng that had been put on hold for several years due to different reasons, a move aimed at helping to ease traffic congestion and create greater momentum for local development on the outskirts of the city centre.
At a year-end review meeting for 2023, Nguyen Van Nen, secretary of the Ho Chi Minh City Party Committee, said the Party and State highly appreciated the southern city’s outstanding efforts in overcoming global headwinds, proving that the city’s post-pandemic recovery is currently on the right track.
Moving forward, this year is anticipated to present both opportunities and challenges, not only for Ho Chi Minh City, but for the whole country in general, with challenges forecast to outweigh opportunities. But the significant gains the city has recorded in governance administrative reform, public services, along with joint efforts of businesses and local residents, will help the city to weather global headwinds moving forward.
Việt Nam-Australia bilateral trade down 12% in 2023
The Vietnamese Trade Office in Australia reported that bilateral trade between Việt Nam and Australia decreased by 12 per cent in 2023 from the previous year. Trade amounts totalled US$13.75 billion, with Việt Nam shipping $5.22 billion worth of exports and importing $8.53 billion worth of goods from Australia.
The trade office's report cited global economic uncertainties, challenges in the Australian economy, high inflation and exchange rate fluctuations as contributing factors to the decline.
The decrease in Việt Nam's exports to Australia was still moderate (-5.3 per cent), in line with an overall 4.4 per cent reduction in the country's exports over the same period.
The Southeast Asian economy at large showed resilience with its exports to Australia. Crude oil exports were up by 37.4 per cent, as were textiles and garments (+4.9 per cent) and iron and steel products (+1.5 per cent).
Australia's inflation rate decreased in the later months of 2023, contributing to a strong rebound in bilateral trade after an initial decline after sluggish figures earlier in the year. This rebound holds promising signs for the coming year, said the trade office.
Looking ahead, the trade office remarked it had a positive outlook for bilateral relations with Australia. Việt Nam and Australia have agreed to elevate their relationship to a Comprehensive Strategic Partnership, and they are signatories to crucial Free Trade Agreements including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP) and the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA). The Economic Enhancement and Cooperation Strategy between Vietnam and Australia (EEES) also underscores significant areas of cooperation under development between the two countries.
According to the trade office, the Australian government has outlined four priority areas for cooperation with Việt Nam: agriculture and food, clean energy, mineral resources, and education and training.
Vietnamese products have recently made inroads into the Australian market, with strong growth potential for certain products like confectionery and cereal products (+89 per cent), rice (+19.1 per cent), and clinker and cement (+119.7 per cent).
The trade office remarked, however, that challenges remain regarding the stringent technical regulations products must meet to be sold on the Australian market. Australia has imposed various regulations on imports, emphasising the need for Vietnamese exporters to prioritise product quality over low prices to align with the consumption habits of Australian consumers.
In the agriculture sector, the fragmented scale of production in Vietnam poses challenges in product traceability, quality control, and compliance with strict Australian standards. The trade office recommended exporters to conduct thorough market research focusing on consumer needs, adherence to local laws, and special attention to packaging and quality.
Việt Nam: South Korea's third largest trade partner in 2023
Việt Nam remained South Korea's third-largest trade partner for the second straight year in 2023 despite a drop in both imports and exports from the Southeast Asian country, according to the Korea International Trade Association (KITA).
Two-way trade reached US$79.43 billion last year, with Vietnamese exports shrinking 12.3 per cent year-on-year to $53.49 billion.
At the same time, imports from Việt Nam also dropped 2.9 per cent on-year to $25.94 billion, and South Korea's trade surplus shrank 19.5 per cent to $27.55 billion.
Việt Nam surpassed Japan for the second consecutive year in 2023 to retain the third position, following China with $267.66 billion and the US with $186.96 billion.
KITA blamed last year's drop in trade with and exports to Việt Nam on falling chip exports. South Korean semiconductor shipments to Việt Nam tumbled 21.6 per cent on-year to $12.73 billion in 2023.
Four other export items – flat panels and sensors, petroleum products, wireless communications equipment and synthetic resins – also went down last year, according to the data.
Bilateral trade between Việt Nam and South Korea has been growing exponentially since the two countries established diplomatic relations in 1992 when trade hit only $500 million.
The trade volume gained further momentum as the two nations signed a free trade agreement in 2014.
Việt Nam was the RoK’s eighth-largest trading partner that year, but its ranking surged to fourth place a year later. In 2022, Việt Nam outpaced Japan to become South Korea’s third-largest trading partner for the first time.
Cruise ship brings nearly 2,000 foreign tourists to Phu Quoc
Cruise ship Aida Bella transporting 1,979 tourists arrived at Phu Quoc Island in the southern province of Kien Giang this morning, February 2.
During the one-day stay in Phu Quoc, travellers on the cruise ship will visit different places on the island, including the night market, Vinwonders Phu Quoc and Vinpearl Safari Phu Quoc and local traditional handicraft villages.
Tourists will also enjoy the island's specialities and experience various recreational activities, including snorkelling, fishing and kayaking.
Most of the passengers on the cruise ship are from Europe with 90 percent of them being German.
Aida Bella is among the most modern cruise ships in the world.
Since January, Phu Quoc has welcomed 500,000 tourists, including 82,615 foreigners.
Bui Quoc Thai, director of Kien Giang’s Department of Tourism, said Phu Quoc will also welcome the cruise ship Costa Serena at Tet.
Increasing competitiveness for agricultural products exported to the US
The US was Vietnam’s second-largest agricultural, forestry and fishery export market (after China), accounting for 20.7% of Vietnam’s total export turnover. The room for export to this market remains very large as Vietnam has further improved the quality and competitiveness of its agricultural products.
The Import-Export Department under the Ministry of Industry and Trade quoted statistics from the US International Trade Commission, showing that the US imported 1.43 million tonnes of rubber in the first ten months of 2023. However, Vietnam is only the 13th largest rubber supply market for the US, with 20,370 tonnes, worth 28.99 million USD.
Vietnam’s rubber accounted for only 1.42% of the US’s total rubber imports in the first ten months of 2023, down from the 1.66% rate in the first ten months of 2022. Vietnam’s rubber exports to the US are facing competition from many markets, especially Indonesia (accounting for 25.13% of the US’s total rubber imports) and Thailand (accounting for 14.28%).
Despite declines in volume and value compared to the same period in 2022, Vietnam’s cashew market share still accounts for 88.7% and 88.21% of the US’s cashew import volume and value, respectively.
Regarding seafood products, the US’s seafood imports from the markets of India, Ecuador, Vietnam, Japan and the Netherlands have all risen in volume from October 2023, of which Vietnam is the market with the largest increase in import volume and the second-largest increase in import value.
Notably, the US’s imports of shrimp, tra fish and tuna from Vietnam expanded positively. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam is currently the 6th largest seafood supply market for the US, after Canada, Chile, India, Indonesia, and Ecuador.
VASEP said that the rate of product inventory at distributors and retailers in the US has decreased to an average level, which can stimulate businesses here to raise inventory accumulation again, an opportunity for Vietnam to export seafood to the US market. In addition, the US demand for canned fish is currently soaring sharply. Specifically, the revenue of the US canned seafood industry went up from 2.3 billion USD in 2018 to more than 2.7 billion USD in the first ten months of 2023. Products such as lemon-cured sardines and mackerel curry are gradually becoming popular in the US.
The consumption trend of tra fish in the US market in 2024 is forecast to focus on frozen fish fillets, Vietnam’s advantage, in addition to processed and high-added value products, as well as by-products, including fish maw and grilled chopped fish. This requires Vietnam’s seafood industry to diversify products and concentrate on deeply processed products to increase competitiveness in this large market.
Do Ngoc Hung, Commercial Counselor of the Vietnam Trade Office in the US, said Vietnam’s total export turnover of cinnamon to the US reached about 50 million USD in 2022, accounting for 35% of the US’s total import turnover of cinnamon.
Cinnamon and anise are not only popular spices but are also widely used in the food, pharmaceutical, and cosmetic industries and have recently been added to beverage products such as tea, coffee, and other products. Vietnam’s total export turnover of anise to the US hit about 5 million USD in 2022, accounting for 13% of the US import turnover of anise.
Do Ngoc Hung said: “In the US market today, consumers are increasingly interested in products that improve resistance, especially after the COVID-19 pandemic, so the demand for cinnamon and anise essential oils is constantly growing. On the other hand, American consumers also believe that cinnamon and anise are not only products that are beneficial to health but also crops that contribute to protecting nature and the ecological environment and preserving soil and water in steep mountainous areas. They are also valuable in protecting precious indigenous genetic resources and helping ethnic minorities increase their income and improve their lives.”
“These are great values in sustainable development, helping promote Vietnamese cinnamon and anise products in the US market. In addition, localities need to have plans to ensure high-quality raw material areas according to organic standards to enhance competitiveness with similar products from other countries, such as Indonesia, Sri Lanka, and India. Processing enterprises should boost the application of science and technology to improve product refinement content and participate in international fairs to widely promote Vietnamese cinnamon and anise products in the US market,” Do Ngoc Hung added.
MNCs seek legal data localisation updates
The Ministry of Public Security is considering changes to data localisation rules and local office requirements, following concerns from the business community.
One official of the ministry admitted that current regulations, guided through Decree No.53/2022/ND-CP published in 2022, may not be suitable for all businesses.
“Entities subject to the regulation can contact for further guidance on how to resolve any practical difficulties they may encounter. If there are significant obstacles, the ministry can ask for changes in current regulations to ensure a fair legal environment,” he said.
In January, the Digital Sector Committee (DSC) of the European Chamber of Commerce in Vietnam (EuroCham) raised some issues with Decree 53.
The decree details a number of articles of the Law on Cybersecurity, which provides strong requirements on data localisation and local office establishment. The legislation requires government agencies and domestic enterprises to store certain types of data in Vietnam, while mandating both local storage and physical presence in Vietnam of foreign enterprises in stipulated instances.
Bruno Sivanandan, co-chairman of the DSC, said, “Decree 53 impacts both government bodies and domestic enterprises. We seek explicit guidance on the definition of a domestic enterprise in the context of a local branch of an offshore company.”
He elaborated that additionally, the potential clash between the data localisation requirements of Decree 53 and the cross-border data transfer rules regarding personal data protection raises concerns about regulatory inconsistencies. A definitive procedure for cross-border data transfer, including the acceptability of duplicating data in Vietnam while transmitting it abroad, is crucial.
For example, in the banking industry, the State Bank of Vietnam enables foreign branches to host and process users’ data abroad, in their headquarters. However, Decree 53’s data localisation provisions and the cross-border data transfer rules of personal data protection may create conflict with other existing regulations. At present, therefore, there is a risk that companies, especially foreign ones, are experiencing difficulties in their compliance efforts.
EuroCham also proposes harmonisation of the data protection framework. The European Union boasts the General Data Protection Regulation (GDPR) and various other digital service and governance acts. Meanwhile, Vietnam has updated and continued to develop the legislation on cybersecurity and a decree on management and use of internet services and online information, as well as the Law on E-transactions, among others.
In light of the National Digital Transformation Programme to 2025, with orientation to 2030, Vietnam is ardently working to develop its digital government, economy, and society. It is also establishing local digital businesses with improved global competitiveness and capacity.
However, conflicts may arise for companies already subject to EU-GDPR and Vietnamese companies doing business with EU data subjects that need to comply with GDPR, EuroCham said.
“To achieve a unified digital framework, the disparities between Vietnamese regulations and the GDPR must be addressed. We advocate for a facilitating entity and a collaborative approach with relevant institutions from both sides to help companies to comply with these regulations and ensure smooth data flow,” Sivanandan recommended.
In anticipation of great growth potential of data in the country, multinationals are expanding in this field. In particular, US-based Amazon Web Services, the largest cloud service provider globally, is expanding its footprint in Vietnam and other ASEAN markets. It now operates two AWS Edge locations in Hanoi and Ho Chi Minh City, and has been further strengthening its network of customers and partners in Vietnam by signing various cooperation agreements.
Microsoft and Google are also seeking new opportunities in the country in areas such as cloud computing, data, and AI.
Vietnam determined to tap into thriving Halal market
Vietnam is sharpening its strategic approach to the Halal market, actively pursuing stronger partnerships with Indonesia and ASEAN nations to capitalise on the expanding industry.
Vietnamese State President Vo Van Thuong in mid-January urged Indonesia to open its doors wider for Vietnamese agricultural and Halal products, marking a significant step in bolstering bilateral trade ties.
In an equally encouraging response, Indonesian President Joko Widodo also recognised the increasing interest of Indonesian businesses in the Vietnamese market, stating that the nation is eager to see more Vietnamese enterprises extend their operations to Indonesia.
“Given Southeast Asia’s distinction as the region with the world’s largest Muslim population - approximately 277 million, or 42 per cent of the regional populace - the Halal market is enormously influential. Indonesia, as the world’s most populous Muslim-majority country, presents an unparalleled opportunity for the Halal industry,” he said.
Halal is a term of significant religious importance in Islam, denoting products or actions that are permissible within the faith’s guidelines.
Vietnam’s Prime Minister Pham Minh Chinh further elaborated on the combined demographic heft of the two nations, almost 400 million people, representing a significant share of ASEAN’s populace.
“Vietnam’s agricultural prowess, coupled with our capacity to produce Halal food ingredients, lays the groundwork for fruitful collaborations with Indonesian businesses,” he stated, envisioning a partnership that extends beyond mere trade to encompass Halal certification and production.
Vietnam’s strategic orientation towards the Halal sector is not just about tapping into Indonesia’s substantial Muslim market.
“Our goal is to establish a foothold in Indonesia, which would be instrumental in accessing the global Halal market, poised to be valued at $10 trillion by 2028,” PM Chinh emphasised.
This bilateral engagement goes beyond conventional trade dynamics. Both nations are aligned in their sustainable development goals, with Vietnam targeting net-zero emissions by 2050 and Indonesia aiming for the same post-2060.
“This partnership is a testament to our shared vision for a sustainable economic future,” the PM said.
On the other hand, Vietnam’s foray into the Halal market in ASEAN countries has seen a modest trade turnover, amounting to just over $1.11 billion, with Indonesia being the largest contributor at approximately $430 million in the first nine months of 2023, as per the General Department of Vietnam Customs.
Ly Kim Chi, president of the Ho Chi Minh City Food and Foodstuff Association (FFA), pointed out the cultural and procedural nuances of this market.
“The difference in business culture, consumer tastes, and particularly the intricate Halal certification process, which varies across Islamic nations, are key factors,” she said. “Bidrico, for example, underwent a 12-step process to obtain Halal certification for its products, illustrating the challenges faced.”
For companies like Mekong Herbals, obtaining Halal certification is a complex, resource-intensive process.
“It demands a high level of expertise and adherence to stringent production standards,” explained Le Thi Phuong, the company’s business director. “The prohibition of certain ingredients and the requirement for separate production lines for Halal products add to the complexity.”
She also highlighted the financial implications for businesses, especially smaller enterprises, saying, “The high cost of certification, meeting various international standards like GMP, ISO, and HACCP, as well as adhering to Global GAP and Organic standards for raw materials, poses a significant challenge.”
Despite these hurdles, only about 50 Vietnamese companies obtain Halal certification each year, mainly in seafood, beverages, and confectionery.
“Only a few of our members like Vinamilk and Bibica have achieved certification and are able to export,” said Chi of the FFA. “The absence of a state body for Halal certification in Vietnam complicates access and increases costs, affecting the export competitiveness.”
However, the global Halal market, currently valued at $7 trillion and expected to reach $10 trillion by 2028, presents significant opportunities. “Countries with large Muslim populations are increasingly seeking collaboration with Vietnam in the Halal sector due to rising demand,” Chi added.
Vice Chairman Vo Van Hoan of Ho Chi Minh City People’s Committee highlighted that the Vietnamese government is keen on developing its Halal industry through international collaboration.
“This commitment is evident in the prime minister’s directive for a project to bolster the sector by 2030, involving key ministries like science and technology and industry and trade, focusing on establishing national Halal standards and a dedicated certification centre,” he said.
Global pharma expects bumper year
Increasing footprints in Vietnam in 2023, multinational corporations continue to eye stronger local partnerships to bring more new innovative medicines and vaccines to the local market in 2024 and beyond.
Major pharma groups are able to offer new innovative medicines in Vietnam, photo Le Toan
Yukinori Tominaga, general director of Daiichi Sankyo Vietnam Co., Ltd. is preparing for more business of oncology products after obtaining GSP standards accreditation for cold storage in its warehouse in the Mekong Delta province of Long An last year.
Tominaga told VIR, “The priorities in the company’s business plans and strategies in Vietnam in 2024 is to increase more access to new medications by our new innovative pharmaceuticals to improve the quality of life for Vietnamese people. We are considering to bring oncology, pain management, and cardiovascular medicines to Vietnam from 2024 onwards.”
As a global pharmaceutical company with corporate origins in Japan, Daiichi Sankyo established a Vietnamese wholly owned subsidiary in 2020 to venture further into the local market, six years after opening a representative office in Ho Chi Minh City.
Tominaga elaborated that the first importation arrived in its warehouse in December 2022 and released as wholesale of pharmaceuticals to Phytopharma in February 2023.
“It is the very first time in Daiichi Sankyo history, and we have more than 100 years of history in Japan, to gain revenues in Vietnam, which is very meaningful to us. It could lead stakeholders to consider further investment here.”
Similar to Daiichi Sankyo Vietnam, other multinational corporations like Novartis, Sanofi, GSK, Pfizer, MSD, and others are planning to expand here, keeping partnerships with government agencies, medical associations, and hospitals among key priorities in their strategies ahead.
Over the past year, GSK Vietnam has worked with healthcare professionals, government bodies, and local communities to ensure availability of drugs.
“In 2023, we made notable progress in our key areas of vaccines and general medicines. Our paediatric vaccines portfolio continued protecting half of newborn babies in Vietnam against infectious diseases, while our general medicines treated various health conditions, especially in anti-infectives and respiratory,” said GSK Vietnam president Pham Thi My Lien.
“Our focus remained on positively impacting the health of the Vietnamese population, with the goal of reaching one-third of the population by 2025,” she added.
For GSK, Vietnam is one of the six top-priority markets out of more than 100 markets. “We are pleased to see the development of the nation’s health sector, and with the support of the local biopharmaceutical sector, we will continue to unite science, technology, and talent to bring innovative healthcare solutions to anyone who needs them,” Lien added.
Last year also saw strategic partnerships for Pfizer in Vietnam with a number of hospitals, medical universities, and medical associations. They included deals with Cho Ray Hospital, Bach Mai Hospital, the Vietnam Paediatrics Association, the Vietnam National Heart Association, and Vietnam Vaccine JSC.
Darrell Oh, general manager of Pfizer Vietnam, said, “We successfully brought two new innovative medicines to Vietnam in the anti-infectives therapeutic area. These launching activities reflect our unwavering dedication to delivering quality, safe, and valuable healthcare products, including innovative medicines, to Vietnamese patients.”
He added that last year the company also had a patient-access-programme that supported breast cancer patients with access to Pfizer’s new innovative drugs. In 2024, which marks the 175 years since its founding, Pfizer plans to bring the newest innovative medicines and vaccines to patients in Vietnam.
“Pfizer will also prioritise activities such as creating partnerships with healthcare governmental stakeholders in capability building, updating, and sharing of advanced scientific information, looking for opportunities for clinical activities in Vietnam,” Oh noted.
“Pfizer Vietnam will continue focusing our business where we believe we can have the greatest impact on patients and society – pursuing what we believe to be the most innovative biopharmaceutical therapies and vaccines,” he continued.
In late 2023, Minister of Health Dao Hong Lan held a meeting with Swiss Ambassador to Vietnam Thomas Gass to discuss cooperation in the healthcare sector in the context that the Ministry of Health looks to promote cooperation with Switzerland in pharmaceuticals.
It also expects Swiss pharmaceutical enterprises to transfer tech of production of patented drugs, vaccines, and medical biological products which Vietnam cannot yet produce.
The Swiss side has also shown interest in other contents such as the possibilities of foreign-invested enterprises participating in drug distribution, renewable of marketing authorisation (MA) and drug registration licensing, as well as the amended Law on Pharmacy (LoP).
Issues of concerns are among not only Swiss pharma firms but also other multinational corporations.
Darrell Oh of Pfizer said, “We still hope that the upcoming revised LoP and other legislation will create a strong foundation for the development of the pharmaceutical industry. Specifically, this includes shortening the time for reviewing MA dossiers for new innovative drugs and vaccines and eliminating administrative obstacles so that patients can access innovative drugs and vaccines sooner and more effectively.”
At the same time, Oh hopes there are adjusted regulations on the operations of pharmaceutical foreign-funded companies to encourage business development and attract more foreign direct investment in the healthcare sector.
“We strongly believe that the government will consider 2024 as a pivotal year on policy change through amendments, especially the LoP,” he added.
Similarly, Tominaga of Daiichi Sankyo said, “We have utilised special import quotas to import edaravone to Vietnam, which is indicated for ALS treatment. We feel more comfortable to secure supply of products compared with the licence renewals matters in the past, and we do believe these risks can be mitigated more in the future.”
The amended LoP will be submitted to the National Assembly for discussion in the seventh session and for approval in the eighth session later this year.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes