PHA-Exchange> VIETNAM GOVT TIGHTENS PRICE CONTROL ON FOREIGN DRUG FIRMS

[claudio at hcmc.netnam.vn]

HEADLINE: HEALTH & ENVIRONMENT: GOVT TIGHTENS PRICE CONTROL ON FOREIGN
DRUG FIRMS

Foreign drug companies in Vietnam are not allowed to increase drug prices
without permission from the country's Ministry of Health, according to a
document released on Monday.

The ministry's Drug Administration Department sent the document, which
says foreign companies producing and trading medicines in the country have
to keep their prices unchanged except in imperative cases, to companies on
January 24.

Even in urgent cases, companies have to inform the health ministry and
give detailed accounts of their plans to increase drug prices.

The health ministry must then issue its approval, before the companies can
follow through with their plans.

However, drug prices will remain the same from now to the Lunar New Year
festival (Tet) as the health ministry will only start considering such
price increase proposals after Tet (early February) is over.

The ban on arbitrary increases of drug prices is one measure the Drug
Administration Department is taking to better control drug prices.

Vietnam's pharmaceutical market is currently dominated by a total of 249
foreign-invested enterprises, especially the five firms including
Swiss-owned Zuellig Pharma, Thai-owned Mega Products, French-owned
Sanofi-Synthelabo Vietnam, German-owned Diethelm and Indian-owned
Ranpaxyz. They import around 60% of total drugs available in Vietnam and
provide 90% of the total materials Vietnam needs for medicine production.

Such firms have increased their prices many times in the past year due to
loose State management, seriously hurting poor patients in the country.

As at the end of last year, pharmaceutical prices soared 9.1% against a
year earlier, according to official government statistics.

(Young People Jan 25 p1, Labor Jan 25 p1, Youth Jan 25 p1, Vietnam
Panorama)


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