Pharma companies could benefit from EU-Vietnam trade deal
Around half of EU pharmaceutical exports to Vietnam will enter the market duty free once the agreement comes into force
European Union (EU) pharmaceutical companies are set to benefit from a free trade agreement struck between the EU and Vietnam. Under the agreement, around 50% of EU pharmaceutical exports to Vietnam will enter its markets duty free once the agreement comes into force, with the remaining medicines becoming duty free within seven years.
Both sides have also agreed a special annex on pharmaceutical products involving detailed commitments to facilitate trade in medicines, with Vietnam making commitments concerning procurement of pharmaceutical products and allowing EU-invested companies to import and sell medicines to distributors and wholesalers within the country.
Under the deal, the EU pharmaceutical sector will also benefit from improved data protection within Vietnam and pharmaceutical companies can extend patents by two years if there are delays in marketing authorisation.
The pharmaceutical trade covers about 9% of EU exports to Vietnam. In 2014, according to Commission figures, the EU exported medicines worth €561m to Vietnam, while medicines worth €18m were traded the other way.
EU trade Commissioner Cecilia Malmström said: 'This finely balanced agreement will boost trade with one of Asia’s most dynamic economies…. having easier access to…Vietnam, with its 90 million consumers, is great news.'
The agreement may be ratified in 2016.