Measures For Drug Price Management In Vietnam

The following below contents do not contain the full and detailed information of the Decree 54/2017/ND-CP and the Decree 155/2018/ND-CP , but the information is extracted and summarized briefly as a part of the Decrees on measures for drug price management in Vietnam.

1.  Declaration and re-declaration of drug prices

Every pharmacy business establishment shall implement regulations on the declaration and re-declaration of drug prices, other regulations on drug pricing of this Decree and relevant legislative documents; take legal responsibility for the declared and re-declared prices, accuracy of the reports and information provided.

A pharmacy business establishment may sell a drug from the date on which its price is declared or re-declared by the manufacturer, outsourcing entity or importer.

A pharmacy business establishment must not sell a drug wholesale or retail at a price higher than the price declared or re-declared by the manufacturer, outsourcing entity or importer.

Drug pricing authorities shall establish a Drug Pricing Department to review the accuracy of the declared and re-declared drug prices.

Declared/re-declared drug prices shall be reviewed on the following basis:

• Such prices must not be higher than those of ASEAN countries.
• The costs constituting drug prices, which are declared by the importer, manufacturer or outsourcing entity, must be accurate.
• Changes in costs constituting drug prices, such as cost of materials, fuel, exchange rates, salaries and other relevant costs, must be conformable with the price increase.

2.  Listing of drug prices, retail surplus applied to retailers in health facilities

2.1. Listing of drug prices

Responsibility to list drug price:

• Drug wholesalers shall list the wholesale price of each drug at the wholesale stores;
• Drug retailers shall list the retail price of each drug at the retail stores;
• Drug wholesalers and retailers must not sell drugs at prices higher than listed prices.

Price listing:

• Prices may be listed on a table or paper or in other forms as long as it is suitable and noticeable by buyers and the authorities;
• The retail price must be printed, written or stuck on the primary package or secondary package of the drug, written on a board or paper or in other forms as long as it does not block the drug label, is suitable and noticeable by buyers and the authorities;
• The listed currency shall be VND;
• The listed price shall be inclusive of taxes and charges (if any).

2.2. Retail margins applied to retailers in health facilities

The retail price equals (=) buying price according to the invoice plus (+) the retail margin percent rate multiplied by (x) buying price. Formula:

Retail price equals = buying price + retail margin percent (%) x buying price

The drug retailer within the premises of a health facility may only buy drugs from suppliers that are awarded contracts for supplying drugs to such health facility and drugs selected at the health facilities in provinces and central-affiliated cities within 12 months; drugs selected and procured in localities and nationwide within the term of the contract or the centralized procurement framework before the procurement. The buying prices are specified below:

• The buying price for a drug on the list of drugs supplied by successful bidders of the health facility must not exceed the successful bid at the same time.
• The buying price of a drug that is not included in the list of drugs supplied by successful bidders of the health facility must not exceed the successful bids at the health facilities in provinces and central-affiliated cities within 12 months; the successful bids of centralized procurements in localities and nationwide within the term of the contract or according to the centralized procurement framework before the procurement.

This regulation does not apply to drugs that are licensed for import according to Articles 67 and 68 of Decree No. 54/2017/ND-CP; narcotic drugs, psychotropic drugs, precursor drugs and new drugs according to clause 14, Article 2 of the Law on Pharmacy. Such drugs are not supplied by successful bidders of the health facilities.

Maximum retail margin percents applied to drug retailers in health facilities:

The purchase price calculated on the smallest packaging unit	Maximum retail margin percent
Not exceeding 1,000 VND	15%
Exceeding VND 1,000 but not exceeding VND 5,000	10%
Exceeding VND 5,000 but not exceeding VND 100,000	7%
Exceeding VND 100,000 but not exceeding VND 1,000,000	5%
Exceeding VND 1,000,000	2%

Definitions of the smallest pack:

Dosage form	Smallest pack
Tablets, pills or capsules	A tablet, pill or capsule
Liquid	A pre-filled tube, bottle, jar or syringe
Powder for solution for injection	A pre-filled tube, bottle, jar, bag, or syringe
Orally administered powder or granules	A bag or bottle
Cream, salve or gel for topical administration	A tube or jar
Transdermal patch	A patch
Aerosol	A bottle
Kit	A kit

3. Bidding for drug purchase, drug price negotiation and measures for drug price stabilization

3.1. Bidding for drug purchase

Bidding for drug purchases from state capital, health insurance fund, revenue from the provision of medical services and other lawful sources of revenue of public health facilities shall comply with regulations of law on bidding, the principles in Clause 4 Article 7 and Clause 6 Article 107 of the Law on Pharmacy.

3.2. List of drugs and herbal ingredients eligible for price negotiation

The Minister of Health shall promulgate the list of drugs and herbal ingredients eligible for price negotiation according to Clause 6 Article 107 of herbal ingredients based on counsel of the National Advisory Council for Drug Bidding.

3.3. Drug price negotiation

Regulations of the Law on Pricing and its instructional documents shall apply to the implementation of measures for drug price stabilization, power responsibility to implement of measures for drug price stabilization.