Pharmaceutical Industry Development Plan in 2030 and Vision in 2045

In the context of the increasing integration of the Vietnamese economy into global value chains and the occurrence of supply chain disruptions (epidemics, war, trade protectionism, etc.), it shows the importance of achieving self-sufficiency in some of the basic raw materials used in the production of medicines to ensure social protection-people's health care. The development of the pharmaceutical industry-one of the three key sub-sectors of pharmaceutical production-is seen as an important driving force for modernization and the enhancement of national competitiveness. The Vision 2030 and 2045 pharmaceutical industry development plan approved by the Prime Minister of Vietnam not only reflects the country's strategic direction to improve the quality of medicines and self-sufficiency in raw materials supply, but also serves as a driving force for Vietnam to become an ASEAN pharmaceutical hub.

Goals for 2030 and 2045

with a long-term vision, the plan aims to transform the Vietnamese pharmaceutical industry from a state of dependence on imported raw materials to a modern production ecosystem that meets domestic demand and deeply participates in global value chains. Specifically, the strategic objectives of the plan include:

• increase domestic raw material production: By 2030, the goal is to strive to meet 20% of the demand for raw materials for pharmaceutical production, while ensuring that 50% of the demand for raw materials for functional food and cosmeceutical production is met. This is an important measure to reduce dependence on imported supply and ensure supply security in the context of global economic fluctuations.
• Promote exports and increase added value: The plan aims to accelerate the export growth of natural medicinal products such as pharmaceutical ingredients, quantitative extracts and essential oils rich in active ingredients, with an average annual growth rate of 10%. At the same time, paying attention to the research, technology transfer and application of advanced technology is conducive to improving product quality and creating higher economic value for the industry.
• Building a Modern Pharmaceutical Industry: The vision to 2045 is to build Vietnam's pharmaceutical industry into a modern high-tech industry with strong competitiveness in the international market. The growth rate of industrial output in the pharmaceutical industry is 8-11%/year. This will not only help ensure the supply of safe and high-quality medicines, but will also become the driving force for the sustainable growth of the country's economy.

These goals reflect the country's commitment to modernizing production, technological transformation and building a strong domestic pharmaceutical industry, contributing to the protection of public health and the development of the national economy.

Role of the Ministry of Industry and Trade

within the framework of the implementation of the plan, the Ministry of Industry and Trade plays a key role, not only as a policy maker, but also as a bridge between the state and enterprises, domestic resources and international partners. The role of the Ministry of Industry and Trade is reflected in the following key tasks:

1. Lead the development and implementation of the plan: the Ministry of Industry and Trade is responsible for pooling resources and working closely with the Ministry of Health, the Ministry of Science and Technology, the Ministry of Agriculture and Environment and the Ministry of Finance to develop the legal framework and mechanisms for the implementation of the plan. Through coordination to ensure the simultaneous introduction of various regulations, technical standards and preferential policies, to create a good environment for domestic enterprises and multinational pharmaceutical companies to invest in Vietnam.

2. Administrative reform and investment facilitation: The Ministry has worked and will work closely with the relevant ministries to review, amend and supplement the legal provisions on investment, taxation and credit to establish specific mechanisms for pharmaceutical production projects. This is to attract investment in special areas such as the pharmaceutical industry that require large amounts of capital and high technology.

3. Promote international cooperation and technology transfer: Taking advantage of Vietnam's signed free trade agreement, the Ministry of Industry and Trade will promote the expansion of cooperation with multinational companies and international partners. thereby creating conditions for domestic enterprises to learn experience, acquire modern technology, and expand export markets, and help shape the position of the pharmaceutical industry in the international arena.

4. Ensuring supply security and developing the value chain: The Ministry of Industry and Trade cooperates with the Ministry of Health and local governments to establish a production system for pharmaceutical raw materials that meets standards, controls quality and ensures stable supply. The development of a value chain from medicinal materials development, pharmaceutical production to product distribution will help reduce dependence on imported supplies, while enhancing the self-reliance of the Vietnamese pharmaceutical industry. In fact, a variety of important active ingredients can be extracted and refined from domestic medicinal plant sources for the production of pharmaceutical ingredients. For example, rutin in Sophora japonica helps to produce drugs that strengthen blood vessels and prevent and treat bleeding disorders. Curcumin in turmeric has the effect of preventing tumor, adjuvant treatment of cancer and duodenal ulcer. Shikimic acid in star anise extract is the raw material for the production of oseltamivir phosphate, which is an important active ingredient in drugs for the prevention of influenza A H5N1 and H1N1 viruses. Artemisinin in Artemisia annua can be used in the production of antimalarial drugs (DHA, artesunate, artemisinin), not only to meet domestic demand, but also has export potential. The Ministry of Industry and Trade is responsible for researching and developing product brand plans for at least 5 typical pharmaceutical products.

The pharmaceutical industry value chain includes multiple stages, from API production and drug formulation to packaging and distribution, with input materials coming from many countries. The development of domestic supply chains will help reduce import dependence and enhance the industry's capacity for self-reliance. The diagram below shows a typical pharmaceutical production chain, showing the complexity of the industry and the urgent need for localization of raw materials.