Decision 270/QD-TTg 2025 approve pharmaceutical chemistry industry development program towards 2030

DECISION

Approving the pharmaceutical chemistry industry development program towards 2030, with a vision to 2045

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THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Pharmacy dated 06 December 2016 and the Law Amending and Supplementing a Number of Articles of the Law on Pharmacy No. 44/2024/QH15 dated November 21, 2024;

Pursuant to Resolution No. 29-NQ/TW dated November 17, 2022 of the 6^th Plenum of the 13^th Party Central Committee, on continuing to promote industrialization and modernization of the country towards 2030, with a vision to 2045;

Pursuant to the Political Bureau's Resolution No. 36-NQ/TW dated January 30, 2023, on developing and applying biotechnology to serve the sustainable development of the country in the new situation;

Pursuant to the Secretariat's Directive No. 03-CT/TW dated May 19, 2021, on strengthening the Party's leadership over the Campaign "Vietnamese people prioritize using Vietnamese goods" in the new situation;

Pursuant to the Prime Minister's Decision No. 61/2007/QD-TTg dated May 07, 2007, approving the “National key science and technology research program on pharmaceutical chemistry towards 2020”;

Pursuant to the Prime Minister's Decision No. 376/QD-TTg dated March 17, 2021, approving the “Program on development the pharmaceutical industry and domestically produced medicinal materials to 2030, with a vision to 2045”;

Pursuant to the Prime Minister's Decision No. 726/QD-TTg dated June 16, 2022, approving the “Strategy for development of Vietnam’s chemical industry through 2030, with a vision toward 2040”;

Pursuant to the Prime Minister’s Decision No. 165/QD-TTg dated February 28, 2023, approving the “Scheme on restructuring of the industry and trade sector through 2030”;

Pursuant to the Prime Minister's Decision No. 1165/QD-TTg dated October 09, 2023, approving the “National Strategy for development of the pharmaceutical industry of Vietnam through 2030, with a vision to 2045”;

At the proposal of the Minister of Industry and Trade.

DECIDES:

Article 1. To approve the pharmaceutical chemistry industry development program towards 2030, with a vision to 2045 (hereinafter referred to as the Program) with the following contents:

I. DEVELOPMENT VIEWPOINTS

1. To prioritize the development of the pharmaceutical chemistry industry as an economic sector with high added value, capable of deep participation in the global pharmaceutical and chemical production network and value chain, and having high spillover effects on several other economic sectors.

2. To promote the development of Vietnam's natural pharmaceutical chemical products associated with the planning and investment in the development of medicinal material regions to form pharmaceutical industry value chains.

3. To enhance investment attraction from domestic enterprises and multinational pharmaceutical corporations to develop Vietnam's pharmaceutical chemistry industry, orienting multinational pharmaceutical corporations to invest in producing pharmaceutical chemical products through chemical synthesis methods, and domestic enterprises to invest in producing natural pharmaceutical chemical products.

II. OBJECTIVES

To develop the pharmaceutical chemistry industry, gradually increase the proportion of domestically produced and used drug materials, and promote the export of pharmaceutical chemical products, contributing to the realization of the objectives of the Strategy for development of Vietnam’s chemical industry, the Program on development the pharmaceutical industry and domestically produced medicinal materials, and the National Strategy for the development of the Vietnam Pharmaceutical Industry for the period towards 2030 and a vision to 2045, approved by the Prime Minister, with the following specific objectives:

1. By 2030:

- Striving to meet 20% of the demand for raw materials for drug production; meeting 50% of the demand for raw materials for the production of functional foods and cosmeceuticals domestically.

- Achieving an export growth rate of ≥ 10%/year for some natural pharmaceutical chemical products (pharmaceutical substances, quantified extracts, essential oils rich in active ingredients).

2. By 2045:

- Vietnam's pharmaceutical chemistry industry becomes a high-tech, modern industry with competitiveness and participation in the global pharmaceutical industry value chain.

- Achieving an industrial production growth rate for the pharmaceutical chemistry sector of 8 - 11%/year.

III. MAJOR TASKS AND SOLUTIONS

1. Regarding institutions and laws

a) Research, review, and perfect mechanisms, policies, and legal regulations on encouraging, supporting, and attracting investment for the development of the pharmaceutical chemistry industry towards providing the highest level of incentives in terms of taxes, land, finance, etc. for activities such as research and development, investment in production, technology transfer, especially new technologies, core technologies, and technologies for producing high-quality, high-value pharmaceutical chemical products.  Strengthen the attraction of domestic enterprises and multinational pharmaceutical corporations to invest in producing pharmaceutical chemical products through chemical synthesis and chemical biosynthesis methods. Encourage and support Vietnamese enterprises to invest in extracting and refining natural pharmaceutical chemical products along the value chain from cultivation, care, harvesting, primary processing of medicinal materials to production and distribution of products.

Review and promptly establish policies to encourage investment in the production of essential chemical raw materials, such as the production of basic chemicals, the production of chemical products from petroleum used in pharmaceutical chemical synthesis and the extraction and refining of medicinal materials (used in the pharmaceutical chemical synthesis industry and for extracting and refining medicinal materials);

b) Continue to perfect and update relevant standards and regulations for pharmaceutical chemical products;

c) Review, reform, and simplify administrative procedures for investment, production, business, trade promotion, export, and international cooperation activities in the pharmaceutical chemical field. Support organizations and individuals in registering patents and protecting intellectual property rights for new pharmaceutical chemical products; register product circulation, support clinical trials for drugs formulated from domestic pharmaceutical chemical products.

2. Regarding science - technology, human resources, and training

a) Promote research and development activities, technology transfer in the pharmaceutical chemical field, focusing on researching, building, and organizing the implementation of several national and ministerial-level science and technology tasks, aimed at researching and developing high-quality pharmaceutical chemical products that can replace imported products;

b) Encourage pharmaceutical and pharmaceutical chemical enterprises to allocate maximum income to establish enterprise science and technology development funds in accordance with law;

c) Promote training to ensure sufficient human resources for the pharmaceutical chemistry industry, focusing on training high-quality human resources. Strengthen domestic and international linkage and cooperation activities, cooperation between enterprises and higher education institutions, research institutions in human resources training;

d) Support and create favorable conditions to attract experienced foreign experts, scientists, managers, and overseas Vietnamese to work in the pharmaceutical chemical field in Vietnam.

3. Solutions for international cooperation

a) Actively participate in international forums and organizations on pharmaceutical chemistry. Promote research activities, seminars, exchange of scientific research results, and technology transfer with countries having developed pharmaceutical chemistry industries.  Strengthen cooperation with large multinational pharmaceutical corporations;

b) Take advantage of the Free Trade Agreements that Vietnam has joined to increase the effectiveness of attracting investment for the development of pharmaceutical chemical product manufacturing, and support the protection of domestic pharmaceutical chemical production.

4. Solutions for trade promotion, information, and communication

a) Encourage and create conditions for domestic enterprises to expand cooperation and joint ventures with foreign partners to expand markets, promote products, and Vietnamese brand names;

b) Take specific measures to promote and build the national image and brand, and the quality of high-economic-value pharmaceutical chemical products.  Research promoting the development of some pharmaceutical chemical products into national products.  Promote information dissemination about the use of domestic pharmaceutical chemical products;

c) Research and build an industry branding program for some typical pharmaceutical chemical products.

5. Solutions for finance and investment

a) Attract investment resources from domestic and foreign enterprises, focusing on attracting investment from large multinational corporations and enterprises; encourage and create conditions for enterprises to invest in research and development of pharmaceutical chemical products;

b) The state budget shall allocate funds for the tasks and projects of the Program in accordance with law;

c) Research, review, supplement, and effectively utilize resources from the National Technology Innovation Fund, the National Foundation for Science and Technology Development for research, deployment, technology transfer, application of new technologies in production, development of pharmaceutical chemical products, pharmaceutical chemical biosynthesis products, and extraction, refinement of pharmaceutical chemical products from medicinal materials;

d) Orient investment attraction, create conditions for enterprises to invest in forming several high-tech parks and specialized industrial parks for pharmaceutical chemistry consistent with approved plans.

6. The list of key pharmaceutical chemistry industry development projects calling for investment (Appendix attached) is issued together with this Decision.

Article 2. Implementation organization

1. The Ministry of Industry and Trade shall

a) Assume the prime responsibility for the organization and implementation of the Program; monitor and synthesize the situation and results of the Program implementation nationwide, reporting annually to the Prime Minister;

b) Coordinate with the Ministry of Health and relevant ministries, agencies, and localities in promoting the use of domestic pharmaceutical chemical products to serve the development of the pharmaceutical industry according to the National Strategy for development of the pharmaceutical industry of Vietnam through 2030, with a vision to 2045, the Program on development the pharmaceutical industry and domestically produced medicinal materials to 2030, with a vision to 2045, approved by the Prime Minister;

c) Coordinate with the Ministry of Science and Technology to propose key research tasks within the Program for research, application, and development of advanced technologies serving the pharmaceutical chemistry and pharmaceutical industries under the mechanism of placing orders for pharmaceutical chemical products;

d) Coordinate with the Ministry of Planning and Investment, the Ministry of Finance, and relevant ministries and agencies to propose mechanisms and policies for investment incentives, attracting domestic and foreign investment projects, from multinational corporations in the pharmaceutical chemistry field;

dd) Preside over the research and development of an industry branding program for at least 05 typical pharmaceutical chemical products; coordinate with relevant ministries and agencies to promote trade promotion activities for pharmaceutical chemical products;

e) Preside over the development of plans and coordination content between the Ministry of Industry and Trade and the Ministry of Health, the Ministry of Science and Technology, the Ministry of Agriculture and Rural Development for the implementation of this Program.

2. The Ministry of Health shall

a) Direct the implementation of using domestic pharmaceutical chemical products for the production of curative medicines; closely coordinate with the Ministry of Industry and Trade in determining requirements and objectives for pharmaceutical chemical products to serve domestic drug production activities;

b) Direct the development of medicinal material regions according to the National Strategy for the development of the Pharmaceutical Industry and the Program for development of the pharmaceutical industry and domestically produced pharmaceutical materials approved by the Prime Minister;

c) Assume the prime responsibility for the implementation of reforming and simplifying administrative procedures for the registration of circulation of pharmaceutical chemical products used as medicines.

3. The Ministry of Science and Technology shall

a) Promote the implementation of the Program for research, application, and development of advanced technologies serving the pharmaceutical chemistry and pharmaceutical industries to implement the tasks and solutions of this Program;

b) Direct the use of the National Technology Innovation Fund, the National Foundation for Science and Technology Development for research, deployment, technology transfer, application of new technologies in production, and development of pharmaceutical chemical synthesis products, pharmaceutical chemical biosynthesis products, and pharmaceutical chemical products extracted and refined from medicinal materials;

c) Research and include pharmaceutical chemistry synthesis technology to the List of high technologies prioritized for investment and development, and include pharmaceutical chemical synthesis products to the List of high-tech products encouraged for development;

d) Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade, the Ministry of Health, and relevant ministries and agencies in, researching, building, and organizing the implementation of national-level science and technology tasks serving the pharmaceutical chemistry industry; perfect the system of national standards and technical regulations in the pharmaceutical chemistry field and harmonize them with international standards.

4. The Ministry of Agriculture and Rural Development shall

Coordinate with the Ministry of Health, the Ministry of Industry and Trade, relevant agencies, and the People's Committees of provinces and centrally-run cities in planning and developing regions for growing and exploiting medicinal materials to ensure the supply of raw materials for the pharmaceutical chemistry industry.

5. The Ministry of Finance shall

Coordinate with the Ministry of Industry and Trade and relevant ministries and agencies to direct and allocate funds from the state budget according to the current state budget decentralization to implement the Program, ensuring compliance with the Law on the State Budget and relevant laws.

6. The Ministry of Planning and Investment shall

a) Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, reviewing, assessing, and proposing investment attraction and incentive mechanisms and policies in the field of pharmaceutical chemistry;

b) Coordinate with the Ministry of Industry and Trade, the Ministry of Health, and localities to promote investment attraction, forming high-tech parks and specialized industrial parks for pharmaceutical chemistry; balance and allocate state budget capital to implement the Program's projects in accordance with the law on public investment and relevant laws.

7. People's Committees of provinces and centrally-run cities shall

a) Implement investment promotion activities for pharmaceutical chemistry projects in the locality; closely coordinate with the Ministry of Industry and Trade, the Ministry of Health, and relevant agencies in guiding, creating favorable conditions regarding administrative procedures, and implementing effective support measures to attract and encourage investors and enterprises in implementing pharmaceutical chemistry projects in the locality;

b) Allocate land funds and create favorable infrastructure conditions for investment projects developing the pharmaceutical chemistry industry consistent with approved plans, this Program, and legal regulations;

c) Develop and issue mechanisms and policies suitable to local conditions to encourage investment, attract and train human resources for the development of the pharmaceutical chemistry industry.

Article 3. This Decision takes effect on the date of its signing.

Article 4. Ministers, heads of ministerial-level agencies, heads of governmental-attached agencies, Chairpersons of provincial-level Peoples Committees, and concerned organizations and individuals shall implement this Decision.