Speaking at Group 3 on October 21 during discussions on amendments and supplements to the Law on Pharmacy and the Law on Medical Examination and Treatment, the Prime Minister (PM) stressed ??? the The Central Committee, the Politburo, and the Government’s ultimate goal was to ensure that healthcare facilities and patients could access medicines and medical equipment at affordable budget, reduce costs for the state budget and the Health Insurance Fund,  and eddpecially reduce the financial burden on patients.

Address Legal Loopholes That Drive Up the price of Medicine and Medical Equipment

The PM made it clear that inspections, examinations, and investigations conducted by the relevant authorities, including the Ministry of Public Security and the Government Inspectorate, had uncovered numerous loopholes in legal regulations, implementing guidelines, and the implementation process, resulting in multiple intermediary stages that drove the prices of medicines and medical equipment to unreasonably high levels.

Prime Minister Le Minh Hung emphasized that the ultimate goal of amending the law is to bring the prices of medicines and medical equipment down to a reasonable level, one that is affordable for patients

“In particular, the prices of certain categories of medicines and medical  equipment have been driven up to unjustifiably high levels due to the involcement of too many intermediaries,” the Prime Minister said. He added that investigations into several cases had uncovered schemes involving the establishment of multiple companies overseas and a series of circuitous transactions that drove import prices to extremely high levels.

PM stressed that the most serious consequence of this situation was the increased cost of medical examinations and treatment, directly affecting people's rights and placing significant pressure on the state budget and the health insurance fund.

He emphasized the need to eliminate unnecessary intermediaries that inflate the prices of medicines and medical equipment, ensuring that unreasonable costs do not become a burden on patients, the state budget, and the health insurance fund.

Excessively high prices for medicines and medical equipment not only increase patients' out-of-pocket expenses but also limit access to medicines and healthcare services, particularly for people in difficult circumstances. “Some costs are far higher than necessary, unreasonable, and utterly unjustifiable”, He pointed out.

Given this situation, the PM stated the Government was determined to work with the relevant bodies of the National Assembly to amend and improve legal regulations and address shortcomings in the management, supply, and procurement of medicines and medical equipment.

He called on National Assembly deputies, particularly those working in the healthcare sector or in hospitals to carefully study the draft  law and provide direct input on each provision, ensuring that the regulations, once enacted, would effectively resolve practical difficulties.

Preventing collusion between businesses and intermediaries to manipulate the market and drive up the prices of medicine and medical equipment

Addressing shortcomings in the procurement mechanisms for medicines and medical equipment, the PM asked: “Why can private hospitals purchase medicines and medical equipment at very reasonable prices, while public and state-run hospitals cannot?”

According to the PM, this was a major issue that required serious and responsible study and assessment to identify appropriate solutions. He said he had discussed with the Ministry of Health the need to examine the procurement and bidding practices of private hospitals and clarify why these facilities could obtain medicines and medical equipment at reasonable prices while public hospitals faced considerable difficulties.

“The key question is whether we have the strong political determination needed to make this happen,” the PM emphasized.

Delegates attend the discussion session at Group 3

Drawing on practical experience, the PM called for procurement mechanisms to be reviewed and improved to make them more flexible and appropriate for different categories of medicines and medical equipment, while ensuring transparency, openness, and effective price control.

Specifically, it is necessary to clearly define which medicines and medical equipment should be subject to centralized procurement and which should be eligible for direct negotiation and purchasing by hospitals within the legal framework. Competitive bidding may be appropriate for commonly used, widely used products, while price negotiation mechanisms may be adopted for specialized products with specific characteristics. “The domestic market cannot be open while businesses, manufacturers, or intermediaries collude to manipulate the market and control the prices of medicines and medical equipment. These issues must be addressed as part of the process of finalizing the Law on Pharmacy and other legal provisions related to medical examination and treatment,” the PM stressed.

He suggested that the Ministry of Health and experts could work directly with manufacturers and suppliers to develop appropriate procurement methods and reduce unnecessary intermediaries.

Improving laws, decrees, and guiding circulars must  aim to fundamentally address shortcomings in the supply and procurement of medicines and medical equipment, while empowering hospitals to be more proactive without compromising the requirements of state management.

Businesses must be profitable, but those profits must be reasonable

Addressing the approach to regulating prices for medicines and medical equipment, the PM noted that some have suggested relying on market mechanisms. However, he pointed out that medicines and medical equipment were distinctive categories of goods directly related to people's health, lives, and access to healthcare services. Given the country's economic challenges and the difficult circumstances faced by many patients, the State must establish appropriate mechanisms to regulate and control prices rather than leaving them entirely to market forces.

“We agree that businesses must  be profitable, but those profits must be reasonable. Patients must have access to medicines and medical equipment at prices they can afford,” the PM emphasized. He also pointed out that the out-of-pocket expenses people incurred for medical examinations and treatment remained high.

According to the PM, unless prices for medicines and medical equipment could be effectively controlled and unreasonable intermediary costs reduced, the burden on patients, the state budget, and the health insurance fund would continue to grow. This  not only undermines the efficient use of resources but also directly affects people's livelihoods and the implementation of social security policies.

The Prime Minister emphasized the need to eliminate unnecessary intermediaries in the medicines and medical equipment sectors, in line with the direction of improving regulatory mechanisms in other essential sectors. At the same time, sufficiently stringent regulations must be  established to prevent businesses and intermediaries from colluding to manipulate the market and drive up prices to unreasonable levels.

Determine to bring medicine and medical equipment prices to reasonable levels and reduce pressure on the health insurance fund

The PM  noted that during negotiations on international trade agreements, pharmaceuticals—particularly brand-name medicines—were among the most complex areas, involving numerous provisions on intellectual property rights, data protection, and access to generic medicines. These issues have significant implications for developing countries.Vietnam must therefore remain steadfast in negotiations and protect its national interests while balancing international commitments with the need to provide healthcare for the citizens. At the same time, appropriate legal regulations must be established to ensure that Vietnam's domestic markets for medicines and medical equipment develop in a healthy and transparent competitive environment, preventing market manipulation and dominance that could disadvantage patients. Reaffirming the Government's determination to improve the institutional and regulatory framework for the healthcare sector, the Prime Minister called for amendments to the Law on Pharmacy and improvements to legislation governing medical examination and treatment to establish a legal framework that is transparent, practical, and enforceable, meeting both regulatory requirements and the operational needs of healthcare facilities.

According to the PM, the key issue is not merely to amend legal provisions but also to ensure consistency with the relevant decrees and implementing circulars, thereby comprehensively addressing the shortcomings that have been identified.

He requested National Assembly deputies to continue studying the draft legislation and provide direct input, particularly on provisions concerning price regulation, bidding, procurement, and the supply of medicines and medical equipment.The ultimate goal is to ensure that healthcare facilities can access medicines and medical equipment at reasonable prices, reduce costs for the state budget and the health insurance fund, and, above all, lessen the financial burden on patients.