A memorandum of understanding to this effect was signed on Nov. 14.

Minister of Public Health Nguyen Quoc Trieu said he believed that the implementation of the MoU would help transform the drug industry into a spearhead economic sector in accordance with the Party Political Bureau’s Resolution.

According to the minister, the two ministries have agreed to cooperate over several issues related to drug production and distribution. Under the MoU, the Ministry of Industry and Trade will take responsibility for the continuation of a programme of scientific-technological research and referring projects to health experts for verification.

The Ministry of Public Health will make recommendations over materials needed for drug production to the Ministry of Industry and Trade, who will conduct further laboratory research.

Vietnam now has 800 pharmaceutical companies and 439 foreign drug companies registered for business, and close to 40,000 drugstores.Drugs manufactured in Vietnam account for 50 percent of the domestic market and 86 drug manufacturers have obtained the Good Pharmacy Practices (GPP) standard.

However, the country has to import up to 90 percent of materials used in the manufacture of drugs.