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.
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strong international network. We focus on customers’ needs and provide clients
with a high quality legal advice and services. For advice or services request,
please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.
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