Ministry of Health urges price stabilization for medicines amid rising input costs and global supply risks

The Ministry of Health has issued a new directive aimed at strengthening the management, operation, and price stabilization of medicines, medical devices, and health services, in implementation of Prime Minister’s Directive No. 28/CD-TTg on strengthening price management.

The ministry said that, to date, price management of medicines, medical devices, and health service prices has been carried out in accordance with the law, helping protect people’s rights and control healthcare costs. However, it noted that ongoing global and domestic economic complexities, rising input costs, and the risk of global supply chain disruption have created urgent requirements to ensure supply and stabilize prices for essential goods, including medicines and medical devices.

Public disclosure and procurement requirements

The directive urges health facilities under the ministry and other ministries to publicly publish, clearly and in line with regulations, the prices of health services, medicines, and medical devices, and to update prices promptly when changes occur.

Procurement of medicines and medical devices should follow procurement law, ensuring competition, openness, transparency, efficiency, and cost-effectiveness. During contractor selection, facilities are required to fully evaluate factors including quality, price, origin, and fit with professional needs.

Inventory review, supply coordination, and retail compliance

The ministry calls for regular review and assessment of usage, inventory levels, and supply capability. It also requires active coordination with suppliers to ensure supply in the event of disruptions caused by objective reasons.

Retail drug outlets within institutions must strictly comply with retail markups and retail drug prices.

Local implementation, monitoring, and enforcement

Health Departments are instructed to implement price-stabilization measures for medicines within their jurisdictions, strengthen monitoring of price movements and supply conditions, and proactively plan procurement, stockpiling, and pricing adjustments to prevent local medicine shortages.

The directive also emphasizes strengthening inspection, auditing, and supervision of compliance with pharmacopoeia and medicine pricing regulations. It calls for strict handling of violations such as failing to post prices, selling at prices not posted, or selling medicines of unclear origin.

Use of information technology and device price monitoring

The ministry encourages greater use of information technology in management and linking supply facilities to help control origins and price movements.

It also requires monitoring of the price movements of declared medical devices. If abnormal fluctuations are detected, facilities must summarize and report to the Ministry of Finance and the Ministry of Health for timely action under regulations.

Obligations for manufacturers, importers, and traders

For manufacturers, exporters, importers, and traders of medicines, drug ingredients, and medical devices, the directive requires strict adherence to national price regulations. They must post prices and sell no higher than posted prices, and comply with price announcements on the Ministry of Health’s portal.

The Ministry of Health prohibits hoarding and price manipulation that could destabilize the market. It also instructs facilities to actively reduce production and business costs. If input costs rise, they should review and optimize costs to maintain stable selling prices and support market stability.

Supply continuity and stockpiling plans

The directive further requires timely information sharing with health facilities about supply conditions, especially in cases of force majeure disruptions.

Facilities are told to develop stockpiling plans, diversify sources of raw materials and finished medicines, and ensure continuous supply—particularly for essential and emergency medicines.