Vietnam import duties and taxes on drugs set to fall in bid to attract investment

Vietnam's general tax levied on pharmaceuticals is to be gradually reduced from the present 0%-10% rate to 0%-0.5%, according to the government's Pharmaceutical Management Department. In addition, import duties on the 47 product categories of drugs that currently stand at 10%-15%, are due to be cut, as part of Vietnam's preparations to join the World Trade Organization.

Starting January 1, 2009, foreign drugmakers will be allowed to import and export drugs without having to employ local imntermediaries. Together with the reductions in taxes and import tariffs, the Vietnamese government hopes that the measures will improve the country's attractiveness to foreign drug firms.

Ly Ngoc Kinh, Director of the PMD's Therapeutic Department, said: "we should encourage foreign manufacturers to bring their technology, machines and people to Vietnam."