Vietnamese drug importers and distributors make a lot of profits, but the drug market is not open to any "outsiders", but is controlled by interest groups with strong backgrounds.
Hugo.com learned from recent reports in "Vietnam News": Although Vietnam has long joined the WTO, the circulation of imported drugs still relies on Vietnamese domestic distributors.
According to WTO rules, the Vietnamese market should be open to any merchant or company, including foreign companies that set up production bases in Vietnam. However, many foreign manufacturers do not want to build factories in Vietnam, because foreign pharmaceutical production groups with offices in Vietnam are only allowed to conduct advertising and marketing activities in Vietnam, and cannot directly contact end consumers. This has led to the fact that drugs produced by foreign pharmaceutical companies have to make many detours to reach Vietnamese consumers.
imported medicine distributors have to sign an agreement with a large local group in Vietnam to distribute imported medicines in the Vietnamese market. Because in Vietnam, only large enterprises have the legal status to sign commercial contracts, issue invoices, and collect funds.
winning bids to supply medicines to hospitals is a goal that all imported medicine distributors strive to achieve. However, in order to become a supplier of medicines used in hospitals in Vietnam, distributors must provide medicines at the lowest possible price.
VN Pharma is a well-known large-scale supplier of hospital medicines in Vietnam. When the Vietnamese police launched an investigation into VN Pharma, people discovered what the distributor must do to become a partner of the hospital. According to industry insiders, distributors of imported medicines who win bids for the supply of medicines to hospitals through low-price bidding generally have commercial partnerships with small Asian pharmaceutical companies, which generally have no name in the international market.
In order to establish business relationships with these small Asian companies, local Vietnamese companies must have a strong background, strong funds, and strong international relationships.
is not protected by law when the two parties have a dispute if the transaction is only conducted through negotiation, verbal promise or reputation, and the bills that are not passed are used as proof.
Drug importers and distributors set drug prices in various ways. For example, the production cost of tablets manufactured in South Korea is about 2,000 VND. After the manufacturer sells them to Korean distributors at a price of 4,000 VND, it includes 5% tax and other expenses. South Korean distributors are colluding with Vietnamese drug distributors to sell at a negotiated price of VND 8,000. In the transaction price of 8,000 VND, the price difference of
is 4,000 VND. Among them, the profit of the Vietnamese dealer accounts for 2,000 VND, and the remaining 2,000 VND is used to bribe physicians who prescribe drugs for patients.
and then large Vietnamese companies sell them to hospitals at an invoice price of 9,000 VND per tablet. The selling price of large Vietnamese companies can only be as high as this, and they cannot be sold at a higher price, otherwise the dealers will not be able to win the bid. However, despite this, the price of imported medicines is always high because of the high costs involved in the circulation of imported medicines. (Compilation/Hugo Net, Lin Quansheng, Translation Review, Wu Yihui)
welcomes attention to cross-border e-commerce and foreign trade industry's first WeChat account [cifnews]
statement: reprinting shall not modify the title and original text, and retain the source and original link. Otherwise, Hugo.com lawyers will retain evidence and resort to legal channels. http://www.cifnews.com/Article/12436
-
-
-
-
-
-
-
-
-
-