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Bids for medicine increase as new policy takes effect

The number of bids for medicine and medical equipment has risen dramatically in Ho Chi Minh City, according to the city’s Health Department.
Bids for medicine increase as new policy takes effect ảnh 1Bidding activities for medicines and medical equipment have increased in the last two weeks as a new government policy for transparent bidding, which aims to lower drug prices, has taken effect (Illustrative image. Source: VNA)

HCM City (VNS/VNA) -
The number ofbids for medicine and medical equipment has risen dramatically in Ho Chi MinhCity, according to the municipal Department of Health.

Many of the bids, which are worth thousands ofbillions of VND, occurred in the past two weeks after the department selectedthe slate of potential pharmaceutical suppliers.

The bidding stages, including the hiring ofconsultants and preparation of bidding documents as well as financialarrangements, have also been completed, according to the department.

Last week, Thong Nhat Hospital in Tan Binh districtannounced that it would invite bids for three packages to buy medicine andmedical equipment, including a bid package for generic drugs worth 600 billionVND (26.4 million USD). This attracted the attention of many pharmaceuticalsuppliers.

The other two bid packages include 309 kinds ofspecial brand drugs (or the equivalent), with a total bidding package value of 260billion VND (11.5 million USD).

Cho Ray Hospital last week alsoinvited bids for two packages to buy medical equipment, of which the bidsecurity payment was already 600 million VND (26,400 USD).

Bidders have also been interested in threebidding packages from the HCM City Oncology Hospital to buy radioactive substancesand marking compounds and other medical equipment with total value of 82billion VND (3.6 million USD).

Winning the bids can be highly profitable as theannual procurement value has reached thousands of billions of VND expertssaid. However, there is severe competition among contractors.

A representative of Minh Chau Health Co., Ltd, amajor pharmaceutical company in HCM City, said: “Contractors must increasetheir capacity in terms of quality, service delivery, and, of course, pricecompetition to be able to win the bid.”

At a recent bidding event for generic drugs byDistrict 2 Hospital, 140 contractors submitted bids. For a package of 142 billion VND (medium-sizedpackage), this was considered a very high number, according to the hospital.

The hospital also invited bids for two otherpackages, including one to purchase special drugs and one to buy traditionalmedicine and herbs, with total bidding value of more than 45 billion VND.

The three packages at District 2 Hospital haveattracted more than 30 tenders, including major contractors in Vietnam andaround the world such as Domesco, Bidiphar, Agimexpharm, Pymepharco, USSPharma, Zuellig, Yteco and Ben Thanh.

Bui Manh Con, Director of An Binh Hospital, saidthat 121 contractors had submitted bids worth a total of 80 billion VND for onepackage.

During a tender event, a representative of thecontractor, Mekong Company, said it had already participated in many bidpackages. “All of the packages have rigorous standards.Contractors must ensure many criteria, including GSP (Good Storage Practice),GDP (Good Distribution Practice) and GMP (Good Manufacturing Practice),” hesaid.

To win the bid, contractors have to prove theircapability and experience, including the number of contracts they have signed,experience in production and business, and financial capacity of contractors.

“We have tried to offer the most competitiveprice,” said the company representative.

According to the Health Ministry, drug biddingis being conducted at three levels in the country: national, provincial andhospital. The Vietnam Social Security (VSS) is the Stateagency in charge of organising bidding.  

The ministry said this year it would opennational centralised bidding for 30 of the most commonly used drugs. It willalso extend the list of drugs eligible to be bidden at the provincial level.

In addition, the ministry will negotiate pricesof eight types of highly used patented medicine.

Speaking at a recent meeting, Deputy PrimeMinister Vuong Dinh Hue, said that centralised drug bidding would be a vitalsolution to reduce drug prices.

Extending the list of biddable drugs would notonly be economically beneficial but also a humanitarian imperative, especiallyto ensure that the poor can buy drugs without worry about price hikes, hesaid. 

Hue asked the Health Ministry to conduct open,transparent and competitive bidding on medical equipment and other supplies atsome of its subordinate hospitals.-VNS/VNA
VNA

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