Pharmaceutical Pricing Policies in Vietnam

Abstract

This chapter discusses the pharmaceutical system in Vietnam and the mechanisms for pharmaceutical prices. We include an analysis of the legislative reforms and the impact of the reforms on pharmaceutical prices and accessibility.

Health sector reforms since 1989 have transformed Vietnam’s health care system from a publicly funded and provided health care system to public-private mix. With the shift towards a market economy, Vietnam has allowed pharmaceutical companies to set prices of their products based on market forces, subject to stabilization by the State. A number of legislative and regulatory reforms have been introduced to regulate medicine prices in Vietnam, which were intended to ensure transparency of prices along the supply chain, through price declaration and publication of price information. The initiatives, however, have been less successful than expected because they did not address the need for reasonable prices or the need to differentiate between declared, published and selling prices. Further, provisions were not routinely monitored or effectively enforced.