In 2024, Vietnam’s healthcare sector began significant transformational processes, including institutional and administrative reforms, with notable achievements such as the major revisions to the Law on Pharmacy and the Law on Health Insurance. These legal documents aim to address and fundamentally resolve challenges faced by the healthcare sector in recent years, including procurement and bidding procedures, medical service pricing, and increasing the availability and access of healthcare services to more citizens.
In 2024, the Ministry of Health (MOH) amended 55 out of 160 administrative procedures, streamlined and simplified 116 out of 226 business regulations, ranking first among ministries. In implementing Resolution No. 68/NQ-CP, MOH reduced and simplified 765 out of 3,001 business regulations across ministries and branches. It also streamlined 55 administrative procedures under 19 specialized Government Resolutions, achieving a 75% completion rate. The healthcare sector exceeded two of the National Assembly's socio-economic targets for 2024, with 14 doctors and 34 hospital beds per 10,000 people. Health insurance coverage reached 94.1% of the population. The country now has 1,645 hospitals, including 384 private facilities, serving over 170 million outpatient visits and 17 million inpatient treatments annually.
Notably, revisions to the Law on Pharmacy introduced significant improvements in drug registration and market access. The amendments removed the requirement for Advisory Council evaluations in drug and active ingredient registrations, simplifying approval procedures. The revised law also enhances transparency by clearly defining the rights and responsibilities of foreign-invested enterprises, which previously operated under less stable regulatory conditions. According to a report by Reseach and Markets, Vietnam's pharmaceuticals market is estimated to reach US$7.6 billion in 2024 and has the potential to grow to US$12.12 billion by 2029, with a compound annual growth rate of 7.96% through 2029.
These initiatives are part of a broader vision of the Government of Vietnam for the pharmaceutical sector to contribute over US$20 billion to Vietnam’s GDP by 2045, as outlined in the National Strategy for the Development of Vietnam's Pharmaceutical Industry until 2030, with a vision towards 2045. The National Steering Committee for the Development of Vietnam's Pharmaceutical Industry was established in 2024, headed by the Deputy Prime Minister Le Thanh Long. This national plan aims to strengthen domestic production and technology, targeting 80% self-sufficiency in pharmaceutical demand and 70% in market value by 2030. It also seeks to fulfill all vaccine needs for the expanded immunization program and 30% for on-demand services, with 20% of drug production relying on local materials. The strategy includes achieving WHO Level 3 certification for state-managed drugs, meeting GMP standards for 20% of drug manufacturers by 2030, and training four pharmacists per 10,000 people, with 20% receiving clinical training. Additionally, by 2030, all drug data will be digitized and updated in the Pharmaceutical Industry Data Bank, and AI will be applied to pharmaceutical activities through a one-stop platform.
