Competitiveness to emerge through innovative solutions

Vu Van Chung, deputy general director Foreign Investment Agency Ministry of Planning and Investment

Vietnam has attracted 40,000 foreign-led projects so far, with registered investment capital of $491 billion. There are 159 foreign-invested projects with a registered investment capital totalling $1.8 billion in the healthcare and pharmaceutical sector. Compared to the foreign investment in Vietnam, this is a modest figure. The majority of foreign investors come from Singapore and Taiwan, while those from leading economic and medical centres such as the US and Europe are few.

Vietnamese enterprises face several challenges when cooperating with foreign enterprises. Most of them are state-owned enterprises and cooperation is not tight, due to the gaps in capital, capacity, and technologies. Recently, the trend of investing in projects, complexes, and industrial parks in health and pharmaceuticals has been formed.

With the formation of these zones, the conditions and resources within the legal framework will be reviewed to create a breakthrough in attracting investment next time. The Ministry of Planning and Investment will continue to closely coordinate with the Ministry of Health and relevant agencies to continue perfecting regulations to create better conditions for investors.

Dion Warren, head, Multi-Country Organization India and Southeast Asia Takeda Pharmaceuticals

Takeda is committed to innovation and a healthier future in Vietnam, with a focus on expanding access to medicine and strengthening partnerships for public health. We strongly believe in the value of public-private partnerships to jointly build a more sustainable healthcare system and enhance patient access to safe and effective prevention and treatment methods. With that being the important strategy in everything we do, Takeda has achieved important accomplishments after a decade of presence in Vietnam, spanning all disease areas: oncology, GI, rare diseases, plasma – and now vaccines.

We also actively support programmes that address the unmet needs of patients with rare diseases, including plasma-derived therapies and innovative treatments for multiple myeloma and Hodgkin’s lymphoma, to name a few. In May 2024, we marked another milestone as the Vietnamese Ministry of Health (MoH) approved Takeda’s dengue vaccine, making it the first dengue vaccine approved in the country, adding a new and innovative prevention method as part of an integrated prevention strategy in Vietnam to combat the rising public health threat of dengue in the country. The approval of MoH and the availability of the dengue vaccine in Vietnam marks an important milestone toward sustainable and proactive dengue prevention, adding an important paradigm to existing integrated prevention measures.

Expanding vaccination coverage is critical to our strategy against infectious diseases – and to achieve this, Takeda believes strengthening partnerships with local health authorities, academic institutions, research centres, and both public and private vaccination centres and partners is crucial. Our goals include raising awareness and education about dengue and the importance of vaccination, advocating for sustainable dengue management policies and integrated strategies, and providing comprehensive training for healthcare professionals in vaccination practices.

Ingo Brandenburg, managing director, Bayer Vietnam

Innovation in the pharmaceutical sector transcends mere product development – it necessitates the cultivation of a collaborative ecosystem. Establishing robust connections among partners and fostering collaboration are integral components of this transformative process. Central to this dynamic is the pivotal role played by governments in nurturing a conducive framework for such initiatives.

At Bayer, we recognise the value of teaming up with others who share our goals. This includes other companies, universities, and groups in both the private and public sectors. By working together in strategic alliances, we combine our expertise and pool our resources.

These collaborations not only help advance healthcare but ensure patients are at the centre of everything we do. Through our partnerships, we pioneer new ways of providing more personalised care that is focused on patients’ needs and enhancing better access to quality treatment and healthcare services.

By synergising our efforts, we drive medical progress farther than any one organisation could alone. Our vision of “health for all, hunger for none” is only achievable via collaborative innovation that places communities at the heart of solutions.

Ta Manh Hung, deputy director general Drug Administration of Vietnam

The Law on Pharmacy has propelled progress for the pharmaceutical industry. Previously, pharma companies were mainly state-owned enterprises. Today, there are over 200 factories operated by private companies. The industry provides enough medicine for the basic medical needs of the people, but after eight years since the law’s implementation, some aspects need to be revised.

Some key focus areas include reforming administrative procedures, increasing access to effective medicines for the people, and innovative investment incentives that focus on new drugs and drugs from medicinal herbs. Policies on drug supply on e-commerce platforms should also be considered.

The pharmaceutical industry is special, directly related to the health and lives of people, so caution is needed. In other industries, it is possible to cut down on administrative procedures and conduct post-audits, but in the pharmaceutical industry, this is not possible. Drug licensing must fully comply with the procedures.

Luke Treloar, partner and head of Infrastructure, Government, and Healthcare KPMG Vietnam

One of the most prominent trends impacting Vietnam today is the significance of time, particularly in terms of entering new markets. The timeline to access these markets has become compressed, meaning there’s limited time for action. However, this creates an opportunity for Vietnam to rapidly learn from these markets, develop quickly, and make significant leaps forward.

The country has the potential to evolve from being an import-dependent market to becoming a manufacturing hub that supplies products both domestically and for export. By leveraging global technologies and applying them within the country, we can conduct clinical trials, carry out research and development, and eventually export our innovations. The ultimate goal is to access new markets and capitalise on compressed timelines that allow faster growth.

Vietnam can learn from other markets and fast-track its development process to make a leap comparable to global leaders. This will depend on key decisions. An important factor is how intellectual property is protected, and how a friendly environment for foreign investment will be fostered, allowing Vietnam to reap the benefits.

Many Southeast Asian countries have expressed a desire to engage more investment in intellectual property and harvest the returns. Vietnam must make crucial policy decisions that will shape its future. There is great potential to engage foreign investment, and with a roadmap in place, Vietnam could see contributions amounting to $50 billion to its economy over the next 15 years.

The first steps have already been taken, with a clear roadmap laid out for what we want to achieve in the pharmaceutical sector. We need to pinpoint where we would like to excel, and identify key priorities focusing on contributions to Southeast Asia and beyond.

This journey offers significant opportunities for domestic and international businesses to elevate Vietnam’s standing in the region, positioning the country as a leading hub. But for this vision to become a reality, we must prioritise resources, expertise, and global talent to drive Vietnam towards becoming a true regional centre.

Le Minh Sang, senior health specialist World Bank Vietnam Office

One of the strongest trends we are witnessing today is the application of new technologies, especially breakthroughs like AI and machine learning. The biggest impact of this wave of innovation is that it empowers patients and customers. In the past, we focused on digitising certain internal operations within organisations, including healthcare. However, the narrative has now shifted. Patients and customers have far more power than ever before.

Businesses, especially in the healthcare sector, must adapt to the demands of patients who seek care anytime and anywhere, no longer limited by working hours or the confines of a service provider. Therefore, the current trend of digital transformation in healthcare is not just about technological advancement, but about empowering users.

To succeed in innovation, we need to address two main environments: developing IT, and its application in healthcare. The IT environment must be vigorously promoted to support technological innovation. At the same time, the healthcare sector must adjust to efficiently adopt and apply new technologies.

Vietnam must learn from neighbouring countries like Indonesia, where strong policies to support innovation have been put in place following the pandemic. If we do not quickly create mechanisms for healthcare technology assessment and sandbox policies, we risk falling behind regionally.

If we wish to drive innovation in healthcare, we must swiftly implement such policies and establish healthcare technology assessment frameworks for sustainable development and international collaboration.