FIEs and Vietnam’s pharmaceutical sector evolution

The expansion of operational rights for foreign-invested pharmaceutical companies is deemed a significant step towards creating a more transparent business environment. Attila Molnar, vice-chairman of the European Standards Medicines Sector Committee, talked to VIR’s Bich Thuy about how policy changes may influence investor confidence.

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What impact would expansion of operational rights have on European pharma investors’ confidence in Vietnam?

Expanded operational rights would significantly strengthen European investors’ confidence by confirming that Vietnam is committed to a predictable, open, and long-term partnership with high quality foreign manufacturers.

When investors can participate more fully across the entire value chain — from import of active pharmaceutical ingredients to local toll manufacturing, distribution, and post-marketing activities — they demonstrate a much higher willingness to commit capital, know-how, and technology for decades rather than years.

European companies view recent regulatory reforms that expand opportunities for foreign investors in the pharmaceutical industry — including greater freedom to supply medicines to healthcare facilities and opportunities to enter into contracts for technology transfer and local manufacturing.

If these reforms were complemented by additional operational rights such as clearer distribution options and more flexible public-private partnership models — this would likely further boost the already high level of European business confidence in Vietnam.

How can Vietnam enhance collaboration with European pharma companies in areas such as technology transfer, local manufacturing, and quality standards alignment?