Drug Administration of Viet Nam director Truong Quoc Cuong warns that pharmaceutical products – especially domestic medicines made from imported materials – are likely to cost more this year.

And the Viet Nam Pharmaceutical and Manufacturing and Trading Association estimates that the rise could be between 4 and 10 per cent.

“The inflation and high Consumer Price Index of last year will limit pharmaceutical investment in 2009,” the director said.

Higher costs for electricity and wages would add to the pressure to raise prices.

The drug administration director said that the prices of many drugs had already risen 5 to 10% since November in Ha Noi’s pharmaceutical centres such as Ngoc Khanh, Lang Ha, Van Mieu, and Hai Ba Trung.

Tenders for the supply of medicines to hospitals and public health institutions would be made transparent and carefully monitored to mitigate the rises.

A national tender system would be piloted for commonly used medicines and changes to the drug reserve fund recommended to the Government, he said.

Authorised agencies would monitor drug prices and severely punish violations.

Expensive

Ha Noi pharmacy owner Nguyen Ngoc Trung said some imported medicines, including antibiotics and speciality drugs, had become more expensive.

The wholesale price of Zinnat 500mg has increased from VND207,000 to VND226,000 a box; Efferalgan from VND33,000 to VND37,500, and insulin from VND72,000 to VND88,000.

Several drug importers and distributors have put pharmacies and hospitals on notice that drug prices are set to rise.

Nguyen Thi Hoa, of Ha Noi, is among the many to have been affected by the higher prices.

“I bought the US-made digestive drug Lactylase for VND60,000, about US$4, in early 2007,” she said.

“Now it costs VND78,000 – an increase of almost 30 per cent in 18 months.

“Sometimes when the world price of crude oil falls, you see lower prices for petrol and transport.

“But I’ve never heard of anything but higher prices for drugs, again and again,” she said.

Health Ministry data shows a monopoly over the import and distribution of pharmaceutical drugs does not exist in Viet Nam.

Instead, there is fierce competition between 425 foreign-owned pharmaceutical distributors and 90 direct importers.

But Hau Giang Pharmaceutical Joint-stock Company general director Pham Thi Viet Nga said the continuing financial crisis would heavily impact the market.

The depreciation of the dong against the US dollar would affect Viet Nam’s makers of medicinal medicines already very reliant on imported pharmaceutical materials, she said.

“Obviously, there is pressure from the competition between drug companies in Viet Nam and prices might have to be adjusted,” she added.

But any adjustments should be carefully considered so as to benefit both the companies and society.”

Hau Giang is among Viet Nam’s major drug companies.

The company plans to maintain its revenue and start construction of a $8.5 million-factory that meets the WHO-GMP standard this year.

“We have an advantage in our nation-wide distribution and sales system,” the general director said. (VNS)