How Has The EVFTA Influenced The Pharmaceutical Market in Vietnam?
EVFTA is one of Vietnam’s most notable next-generation trade agreements, marking a major milestone in the 30-year partnership between Vietnam and the European Union. Since taking effect, the EVFTA has significantly influenced Vietnam’s pharmaceutical sector through regulatory reforms and increased foreign participation.
For EU enterprises, the agreement allows the establishment of foreign-invested companies, the right to conduct clinical trials, build storage facilities, and distribute medicines to authorized wholesalers in Vietnam. Although direct distribution to end-users remains restricted, legal improvements—such as Circulars 08/2022/TT-BYT and 55/2024/TT-BYT—have simplified registration procedures and improved transparency. The EVFTA also strengthens intellectual property protection, including data exclusivity and extended patent terms. These changes provide greater legal certainty for EU firms, especially in introducing high-value, patented drugs.
As a result, pharmaceutical imports from the EU have steadily increased. In 2024, Vietnam’s import turnover is estimated at nearly USD 4.4 billion, up 27.9% from 2023, mainly from France, Germany, and others.
However, this also places pressure on domestic pharmaceutical companies, particularly in the area of patented drugs not yet produced locally. Still, the EVFTA offers opportunities for Vietnamese firms to upgrade production to EU standards and explore export potential through cooperation and technology transfer.
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