The Vietnam Chemical Pharmaceutical Joint Stock Company (VCP) launched a multi-million extraction plant in Bac Ninh Province's Tien Son Industrial Park. The inauguration, held on July 20, was done in the presence of Deputy Prime Minister Nguyen Thien Nhan.

Mainly operating to extract materials for pharmaceutical production, the 9,500sq.m factory employs cutting edge technologies aimed to meet the World Health Organization's good manufacturing practice standards (GMP – WHO). Such standards include Good Manufacturing Practice (GMP), Good Storage Practice (GSP) and Good Laboratory Practice (GLP).

Records show that even having around 1,000 pharmaceutical enterprises operating in the country, 30 per cent of which are foreign-funded, Vietnam's production capacity only meets 50% of the domestic drug demand. More so, 90 per cent of the materials used in its production were imported from abroad. With that, Vietnam had recognized its need to stimulate investment in high-tech extraction technologies in order to boost the development of its pharmaceutical industry. Thus, the government should further develop regulations to stimulate simultaneous investment in material plantation, advanced technology and skills development for workers. Once the country boosts its production of raw materials, its pharmaceutical production capacity will move to a more positive direction.

The company initially invested USD6 million in the first phase of its operations where it is expected to provide 500 tonnes of materials annually, with half intended for the domestic market. VCP’s total investment is valued at USD10 million. Along with the inauguration, Deputy Prime Minister Nguyen Thien Nhan asked VCP to work closely with provincial authorities and other sectors responsible in developing areas devoted to growing medicinal raw materials. The aim is for Vietnam to avoid material shortages and eventually help limit importation of materials. On the process, the move will further ensure stable outputs for medicinal plant growing areas and provide jobs for local workers.

Expressing hopes for this recent development to help Vietnam gain prestige in the foreign and domestic market for the next decade, the Deputy PM sees that the multi-million project will not only benefit the country’s pharmaceutical industry, but the entire economy as well.