|
Drug regulator trying to bail out industry
The drugs watchdog has withdrawn on a temporary ban on raising drug prices, one of several measures intended to support pharmaceutical companies that are going through a tough period.
The VPMD has also sought Government approval for declaring drugs an essential commodity so that pharmaceutical firms become eligible for State support.
The Viet Nam Pharmaceutical Management Department (VPMD) has scrapped a ban on price hikes that was scheduled to last until June 30.
The ban came into effect at the beginning of April as the Government attempted to combat raging inflation.
The department will, together with provincial health departments, consider drug companies' reasonable demands for increasing prices.
The VPMD has also sought Government approval for declaring drugs an essential commodity so that pharmaceutical firms become eligible for State support.
It also asked the Health Insurance Agency to advance money to hospitals so that they could pay drug companies their overdue debts.
Litany of problems
Drug companies are faced with surging costs. The prices of some raw materials have increased five - or sixfold since last year, they said.
Since 90 per cent of these if raw materials are imported, production is also affected by global factors.
In addition, the weakening of the dong and the rise in interest rates and transport costs have also taken their toll. Many companies have to buy dollars at 10 or 15 per cent above the official rate to pay for imports.
Others are owed money by hospitals for earlier supply. Most of the hospitals ask for three to six months' time - in some cases, even 12 months - to pay the money.
VNS
|
