Currently, with the
complicated developments of the Covid-19 epidemic in the world in general and
in Vietnam in particular, the research, production and import of Covid-19
vaccines are the matter that everyone is concerned about. On February 24th,
2021, the first batch of vaccine approved for import was transported to Vietnam
by the Vietnam Vaccine Joint Stock Company.
Facing this situation,
a number of foreign enterprises have expressed their opinions on the
limitations imposed on foreign-invested enterprises in the field of distribution
of pharmaceutical products in Vietnam. Vietnam has reserved no commitment
to open the distribution of pharmaceutical products service market and has not
committed to opening the distribution of pharmaceutical products service market
under any trade agreement or international treaty up to the moment, because the
pharmaceutical sector is sensitive, directly related to access to drugs and
people’s health.
According to the
provisions of the law, “distribution of pharmaceutical products” means the
division, movement and storage of pharmaceutical products from the warehouse of
the manufacturer/importer of such products or from a distributor to the end
user thereof or to a distribution point or between distribution points by means
of various transport methods. For distribution services, in the WTO
Commitments, it is clear that pharmaceutical distribution services are excluded
from the scope of commitments for all modes of supply. In addition, Appendix 03
of Circular 24/2016/TT- publicizing roadmaps for goods trade and goods trading
directly related activities of foreign-invested enterprises in Vietnam, it is
also recognized that pharmaceutical products are on the list of goods not
entitled to distribution.
Regarding this issue,
the Drug Administration of Vietnam expressed the following viewpoint: “The
suspension of allowing foreign-invested enterprises in Vietnam to provide drug
storage and transportation services is to prevent the distribution of disguised
drugs in Vietnam, contributing to health security and towards the
professionalization of the medicine distribution system in Vietnam.”
Point c, Clause 10,
Article 91 of Decree 54/2017/ND-CP, effective from May 8, 2017, provides for
cases ineligible to distribute drugs as follows:
“10. The entities that
are entitled to import but not entitled to distribute drugs and medicinal
ingredients in Vietnam must do activities related to distribution of drugs and
medicinal ingredients in Vietnam except for drugs and medicinal ingredients
they manufacture in Vietnam, including:
c) Providing
drug/medicinal ingredient transport or storage services.”
According to this
content, foreign-invested enterprises in Vietnam are not allowed to transport
and preserve drugs, except for drugs and medicinal ingredients manufactured by
that enterprise in Vietnam. It can be seen that the restriction on the right to
distribute drugs to foreign-invested enterprises is aimed at ensuring health
security, being proactive in drug supply and distribution, towards to
professionalize the domestic drug distribution system as a foundation to
support the development of the domestic pharmaceutical industry and
contributing to better control of drug prices in the market.
ANT Lawyers is a law firm in Vietnam located in the
business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient
access to our clients. Please contact our lawyers in Vietnam for advice via
email ant@antlawyers.vn or call our office at +84 28 730 86 529.
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