ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

Thứ Tư, 31 tháng 8, 2016

Pharmacy and Healthcare in Vietnam

1.    Overview
There has been an optimistic trend in pharmacy and healthcare industry in Vietnam. This industry is irreplaceable as the education level and life expectancy of Vietnamese have been significantly improved. However, due to some challenges, pharmacy and health care industry desires for a change in legal framework, thus creating favourable conditions for development in the futures.

2.    Vietnam – next growing pharmacy and healthcare market
  • Overview of market potential
With the population of around 94 million, 44% monthly increasing income, 30% urbanisation rate with 3.4% growth rate per year, 6% GDP growth per year, the demand for better development of pharmacy and healthcare industry has been significantly increased.
Business Monitor International (BMI) in their report “Vietnam Pharmaceutical and Healthcare” revealed that annual total value of pharmacy market $3 billion with annual growth of 15.5% period 2014-2018. The same report also showed that the total healthcare spending reaches $13 billion in 2015 which account for 5.8% GDP- highest in ASEAN, is expected to grow to $24 billion in 2020s.
Trade agreement influence Vietnam’s market
Vietnam has recently taken part in several trade agreement which allow foreign companies to easily enter Vietnam. Firstly, Vietnam has cut tariff on 47 tariff lines of pharmaceuticals. Also by encouraging foreign investment to enter Vietnam in various forms, among 171 pharmaceutical companies operating in Vietnam, 9% are foreign invested enterprise, 4% are joint ventures.
Secondly, in terms of healthcare sector, the data of Ministry of Health stated that there are 137 operational private hospitals, including six foreign invested hospitals, and about 30,000 consulting rooms. These six foreign invested hospitals have the initial investment capital of 94 million dollars. Vietnamese government had licensed to a lot of foreign invested projects in the healthcare sector which included a total investment capital of 1.16 billion dollars. In addition, the government has allowed the investors in healthcare sector to enjoy 10% corporate income tax for the whole life of the project, tax exemption for 4 years and lower land leasing fee for years.
  • Pharmaceutical products heavily rely on import
Local pharmaceutical production was valued at nearly US$920 million which satisfy 48 % of the needs in Vietnam. Imported drugs account for the remaining 52 %. Vietnam imports pharmaceuticals mainly from France, India and Korea. The medicine lines from this countries is stable and price competitive. In terms of domestic companies, the three largest public pharmaceutical companies are DHG Pharmaceuticals JSC (DHG), Traphaco JSC (TRA) and Domesco Medical Import-Export JSC (DMC).
Around 90 of raw material input are imported from foreign countries, in which 57% are from China, 18% from India and other countries such as Austria, Spain, Germany, France, Italy, and Sweden …
  • Vietnam’s consumer behaviour
Vietnamese consumer has a strong preference of foreign medicines. The statistics have revealed that in the doctor prescription, 18 -20% domestic medicines are used for the patients even though the imported medicines are more expensive than domestic ones. Vietnamese consumer has more confident in terms of quality of foreign products.
Only 20%-30% of Vietnamese consumers buy medicines with prescription. However, BMI expected that the usage percentage of medicine through prescription will increase to 74.6% in the next 5 years.
3.    Challenges
  • Poor regulation standards
Price management and intellectual property protection of the government have not been managed closely. Therefore, the price of products still increases every year and the counterfeit medicines is still floating in the market, around 0.1% in 2012 (Drug Administration of Vietnam)
Around 28% of pharmaceutical companies have the Global Manufacturing Practice (GMP) certification, which states the minimum requirements that a pharmaceutical manufacturer must meet in order to prove that their products are of high quality and do not pose any risk to consumers. Particularly, in 2013, there are 79 out of 105 foreign medicine manufacturing enterprises and 5 of 80 domestic manufacturing enterprises that qualify GMP due to the fact that most of the enterprise are small in terms of sizes and capital investment. This indicates that Ministry of Health needs to take more aggressive actions to encourage the companies to meet the standards.
  • Specific patented medicines is weak
Even though there are plenty of investment projects in pharmaceutical and healthcare industry with support from government, producing patented medicines are still too expensive in terms of time and manpower. In fact, lack of medical qualification, infrastructure development and material sources are factors leading to underdeveloped circumstance in this sector.
  • Lack of accessibility in healthcare industry
There has been 1090 public hospital and 175 private hospitals in Vietnam in 2014, is expected to increase to 1204 and 200 respectively. However, there are 25.1 hospital beds per 10,000 inhabitants and 7.9 doctors per 10,000 inhabitants, which are still a question mark that has not been handled.
Please contact ANT Lawyers for more specific advice to Ensure compliance with the laws of Vietnam Inquiries by email through  ant@antlawyers.vn or call our partners at + 84,912,817,823.


Thứ Ba, 30 tháng 8, 2016

Decree 118/2015/ND-CP Guiding the Investment Law 2014

Decree 118/2015/ND-CP was issued on November 12th 2015 by the Government. It takes effect from December 27th 2015 clearly regulates some regulations of the Law on Investment on the application, control, publish investment business condition; measures to ensuring investment, investment incentives, investment procedures, operational implementation of investment projects and state management of investment projects.


Regarding investment conditions in Vietnam:
– In terms of the business investment sectors, investors may invest in conditional business lines when they meet the conditions of license, practicing certificate, certified professional liability insurance or other forms of required documents under the provisions of the covered agreements that Vietnam has signed or specific regulations of the law of Vietnam.
– In addition, investors also have to meet other conditions such as charter capital (for a certain number of business lines); forms of investment; scope of investment activities; Vietnam partners to join the investment execution.
+ Establish economic organization.
+ Capital contribution or share purchase.
+ Business cooperation contract.
+ Receive transfer of investment project.
– Foreign investors when investing in Vietnam in addition to meeting conditions like investor Vietnam, they will have to meet other specific conditions. Particularly for investors that have both Vietnam and foreign citizenships, they will be able to choose to apply the conditions for foreign investor or Vietnam investor.
On the issue of investment incentives, investors will receive incentives from the State in the following cases:
– Projects under the business lines of investment incentives.
– Investing in areas with difficult economic conditions.
– Project with capital from 6000 billion VND and will be disbursed within a period of 3 years.
– Investing in projects in rural areas and use more than 500 employees.
– Investment project in the fields of science and technology.
– For investment projects in Section 3 and 4 above will be entitled to preferential investment projects in areas with difficult economic conditions. The cases that projects simultaneously under both Section 1 and 2 above shall also enjoy incentives according to investment project in areas with difficult economic conditions.
Distinguishes 3 types of projects:
– The investment project that is not subject to the investment policy decision.
– The investment project under the jurisdiction on investment policy decision of the provincial People’s Committee.
– The project that is not subject to the granting of investment certificate.
In particular, for the project’s land that is granted, lease or allow the transfer of land use purposes by the State, it is necessary to deposit to ensure the investment. The deposit rate will be 3%, 2% or 1% depending on the scale of capital is 300 billion VND or above. Depends on the enjoyed incentives that the amount of deposit will be reduced according to different rate (the typical reduction rate is 25% or 50%).
Regarding the transfer of investment project:
Investor is allowed to transfer part or the whole of their investment project to other investor under the provisions of the law on investment (paragraph 1, article 45). In case when the transfer of projects generates income, investors must comply with the relevant tax obligations.
In addition, the Decree 118/2015 also provides details about:
– The procedures for the adjustment of investment projects in the case of division, separation, merger and transformation of economic organization (Article 38);
– The procedures for the termination of investment projects (Articles 41, 42);
– The investment procedures in the form of capital contribution, share purchase and capital contribution of foreign investors.
Decree 118/2015/ND-CP takes effect from December 27th 2015.
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ANT Lawyers is a Vietnamese law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing legal services or representation in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

Musician Ed Sheeran faces copyright lawsuit over 'Thinking Out Loud'


Heirs of the composer for Marvin Gaye's "Let's Get It On" sued British musician Ed Sheeran on Tuesday.
Heirs of the composer for Marvin Gaye's "Let's Get It On" sued British musician Ed Sheeran on Tuesday, claiming his hit song "Thinking Out Loud" copies core elements of the late soul singer's 1973 track.

The copyright infringement lawsuit was filed by the heirs of Ed Townsend, who co-wrote the lyrics to "Let's Get It On" in 1973 and created its musical composition, according to the complaint filed in federal court in the Southern District of New York.
Representatives for defendants Sheeran, Sony/ATV Music Publishing, and Atlantic Records did not immediately respond to requests for comment.
The lawsuit, which asks for damages to be assessed at a jury trial, argues that the harmonic progressions, melodic and rhythmic elements central to "Let's Get It On" formed the structure of Sheeran's "Thinking Out Loud."
"The Defendants copied the 'heart' of 'Let's' and repeated it continuously throughout 'Thinking,'" the lawsuit said. "The melodic, harmonic, and rhythmic compositions of 'Thinking' are substantially and/or strikingly similar to the drum composition of 'Let's.'"
Grammy Award-winning Sheeran has become one of Britain's top-selling artists in the past two years, and has written and co-written tracks for artists such as One Direction, Taylor Swift and Justin Bieber.
The lawsuit came two months after California-based musicians sued Sheeran for $20 million over his hit song "Photograph" in an unrelated case.
Gaye's family last year successfully sued R&B recording artists Robin Thicke and Pharrell Williams for copyright infringement in another unrelated case over their hit single "Blurred Lines," winning a $7.4 million judgment.