VietNamNet Bridge – Chairman of the Viet Nam Pharmaceutical Companies Association Dong Viet Thang spoke with Viet Nam News about domestic pharmaceutical companies on the threshold of the World Trade Organisation (WTO).

• As of January 1, 2007, the Vietnamese pharmaceutical sector will implement its first commitment to the WTO in relation to the pharmaceutical market. And from 2009, foreign businesses will have the right to sell pharmaceutical products to Vietnamese distribution businesses. How is the pharmaceutical sector preparing for this event?

Pharmaceutical businesses are prepared for these events. Firstly, the Government's policy is right for promoting economic development.

Secondly, the events have also prompted domestic pharmaceutical firms to seriously assess their statues in order to draw up suitable business strategies.

• In your opinion, what are the opportunities and challenges faced by local pharmaceutical businesses as Vietnam joins the WTO?

I think that integration into WTO is a means to serving national economic development rather than a goal. Opportunities and challenges are flexible ingredients.

Active businesses that take initiative in improving their internal capacities will be able to take more of the opportunities brought by the WTO than others. If they do not, they will go down.

The country's accession to the WTO will offer active businesses the chance to develop strongly in terms of scale and level. In reality, the domestic pharmaceutical market has recognised such firms including Imexpharm, HG-Pharm, Domesco, Mekophar, Bidiphar, Vidipha, and Traphaco.

In 2005, these enterprises generated more than VND2tril (US$125mil) from production revenues, equivalent to one-third of total pharmaceutical companies' revenues.

• How do you assess the competitiveness of domestic pharmaceutical enterprises?

Vietnam's pharmaceutical sector is considered to be one of the more uncompetitive ones, resulting from domestic pharmaceutical businesses' lacklustre financial capacity as well as their shortages in experience, scientific knowledge and technologies compared with foreign pharmaceutical firms.

But many domestic pharmaceutical firms have attempted to improve their financial capacities and to take advantage of their thorough knowledge of the local market to expand their market share.

Some of them, such as Bidiphar and Mekophar, have affirmed their positions in the competitive international market. I think it's a good signal because penetrating into the world market can enrich Vietnamese pharmaceutical businesses with experiences and help them enhance competitiveness.

• For the pharmaceutical sector's sustainable development, which issues does the sector need to concentrate on?

Sustainable development is a huge notion and thus needs further discussions. But, as an enterprise, I think it is necessary to change thinking in accordance with the market economy and globalisation.

It's not an easy task because many pharmaceutical firms' operations and management styles are out of date and need to be reformed.

Furthermore, enterprises themselves should train teams of active and professional staffs that equal those of other countries in the region. It's easier for businesses to develop if they have qualified human resources.

• Could you tell us about the domestic pharmaceutical market in the past nine months?

The Viet Nam Drug Control and Management Administration's recent statistics reveal that pharmaceutical companies posted a year-on-year increase of 15% in revenues from domestically made drugs in the first nine months of 2006.

And they expect to post 18% revenue growth for all of 2006. The country's volume of imported drugs this year is also expected to increase by 10% over the previous year.

(Source: Viet Nam News)