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THE MINISTRY OF HEALTH OF VIETNAM
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THE SOCIALIST REPUBLIC OF VIET NAM
Independence-Freedom-Happiness
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No. 07/2024/TT-BYT

Hanoi, May 17, 2024

 

CIRCULAR

PRESCRIBING BIDDING FOR SUPPLY OF DRUGS FOR PUBLIC HEALTH FACILITIES

Pursuant to the Law on Bidding dated June 23, 2023;

Pursuant to the Government’s Decree No. 24/2024/ND-CP dated February 27, 2024 elaborating and providing guidelines for implementation of the Law on Bidding regarding contractor selection;

Pursuant to the Government’s Decree No. 95/2022/ND-CP dated November 15, 2022 defining functions, tasks, powers and organizational structure of the Ministry of Health of Vietnam;

At the request of the Director of the Department of Planning and Finance, the Director of the Drug Administration of Vietnam and the Director of Traditional Medicine Administration of Vietnam;

The Minister of Health of Vietnam promulgates a Circular prescribing bidding for supply of drugs for public health facilities.

Chapter I

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Article 1. Scope

1. This Circular provides regulations on bidding for supply of drugs funded by state budget, health insurance fund and other lawful funding sources of health administrative authorities and public health service providers (hereinafter referred to as “public health facilities”), including:

a) Division of contract packages and drug categories;

b) Procedures for selection of drug suppliers;

c) Centralized drug procurement.

2. This Circular applies to the bidding for supply of modern drugs, radioactive drugs, tracers, vaccines, biologicals, herbal drugs, traditional drugs, herbal materials, traditional medicinal materials and various types of gases which are granted marketing authorization number as drugs to serve medical examination and treatment.

3. Procurement of drugs according to orders or task assignment of the State shall comply with the Government’s Decree No. 32/2019/ND-CP dated April 10, 2019 prescribing task assignment, ordering or bidding for supply of public products and services funded by state budget for recurrent expenditures.

4. Procurement of drugs for use in health offices of authorities and detention facilities of the armed forces shall comply with the guidelines given by the Ministry of National Defence of Vietnam and the Ministry of Public Security of Vietnam.

5. Procurement of qualified whole blood and blood products shall comply with provisions of the Circular No. 15/2023/TT-BYT dated July 20, 2023 of the Minister of Health of Vietnam prescribing maximum prices and costs of determination of prices of qualified whole blood units and blood products.

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For the purposes of this Circular, the terms below shall be construed as follows:

1. “national centralized procurement unit” is an unit assigned by the Ministry of Health of Vietnam to organize the national centralized procurement of drugs.

2. “provincial centralized procurement unit” is an unit assigned by a provincial People's Committee to organize the centralized procurement of drugs in the province.

Article 3. Responsibility to formulate drug supplier selection plan and organize drug supplier selection

1. The national centralized procurement unit shall develop and organize the implementation of drug supplier selection plans in accordance with Chapter IV of this Circular under which the time for implementation of a framework agreement and time for execution of a contract package must not exceed 36 months, divided by drug category and supply interval (quarterly and annually), in respect of the following drugs:

a) Drugs which are included in the list of drugs procured through national centralized procurement promulgated by the Minister of Health of Vietnam, and meet category-1 or category-2 technical criteria set out in Article 4 of this Circular;

b) Drugs included in the list of rare drugs promulgated by the Minister of Health of Vietnam;

c) Drugs for which only a small quantity needs to be procured to meet medical examination and treatment as prescribed in Clause 1 Article 53 of the Law on Bidding.

2. Provincial centralized procurement units shall develop and organize the implementation of drug supplier selection plans in accordance with Chapter IV of this Circular under which the time for implementation of a framework agreement and time for execution of a contract package must not exceed 36 months, divided by drug category and supply interval (quarterly and annually), in respect of the following drugs:

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b) Drugs included in the list of rare drugs promulgated by the Minister of Health of Vietnam;

c) Drugs for which only a small quantity needs to be procured to meet medical examination and treatment as prescribed in Clause 1 Article 53 of the Law on Bidding.

3. Procurement of drugs as prescribed in clause 5 Article 53 of the Law on Bidding shall be subject to the following provisions:

a) If regulatory authorities, organizations and units (hereinafter referred to as “units”) have reach an agreement to appoint a unit to take charge of the procurement, the appointed unit shall consolidate demands of other units that have entered into the agreement and organize the procurement in accordance with regulations of the Law on Bidding.

Such an agreement must be made in writing and clearly indicate responsibility to consolidate and send procurement demands, and responsibility to pay costs.

b) If units do not reach any agreement and cannot organize the drug supplier selection themselves or have themselves organized the drug supplier selection which is unsuccessful, they shall send their procurement demands to:

- The Ministry of Health of Vietnam, for units under the management of this Ministry or in case a drug is requested by 02 provinces or more;

- The Ministry of National Defence of Vietnam, for units under the management of this Ministry.

- The Ministry of Public Security of Vietnam, for units under the management of this Ministry;

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Within 10 from the receipt of the written request from units, the relevant supervisory authority shall appoint a unit to take charge of the procurement. If a request is refused, a written response indicating reasons for such refusal shall be provided.

4. Public health facilities shall themselves develop and organize the implementation of drug supplier selection plans in respect of the drugs which are not covered by the drug supplier selection plans of either the national centralized procurement unit or the provincial centralized procurement units. Formulation of drug supplier selection plans and organization of drug supplier selection by public health facilities shall comply with provisions of Chapter III of this Circular; the maximum duration of execution of a contract package is 36 months and is divided into smaller parts and by the drug category.

Chapter II

DIVISION OF CONTRACT PACKAGES AND DRUG CATEGORIES

Article 4. Generic drug contract package

A generic drug contract package may contain one or several generic drugs. Each list of generic drugs must be sorted by category. Each generic drug in each category is a part of the contract package. A contract package of generic drugs is divided into 05 categories based on technical criteria as follows:

1. Category 1 consists of drugs which have been granted certificate of marketing authorization or import license for sale in Vietnam and satisfy one of the following criteria:

a) The drug is manufactured on the production line fulfilling EU-GMP requirements or the production line fulfilling EU-GMP-equivalent requirements in a SRA or EMA country and announced by a drug authority of Vietnam to fulfill EU-GMP requirements or EU-GMP-equivalent requirements;

b) The drug is included in the list of original brand-name drugs or reference biologicals announced by the Ministry of Health of Vietnam;

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- The drug is wholly manufactured on the production line fulfilling EU-GMP requirements or the production line fulfilling EU-GMP-equivalent requirements and announced by a drug authority of Vietnam to fulfill EU-GMP requirements or EU-GMP-equivalent requirements;

- The drug has been granted certificate of marketing authorization by a drug authority of a SRA or EMA country according to Clause 4 Article 40 of this Circular;

- The drug sold in Vietnam and the drug granted certificate of marketing authorization by a drug authority of a SRA or EMA country must have the same dosage form, production process, specifications and testing methods; active ingredients and excipients must have the same specifications and been manufactured at the same manufacturing facility or site as prescribed in Clause 4 Article 40 of this Circular.

2. Category 2 consists of drugs which have been granted certificate of marketing authorization or import license for sale in Vietnam and satisfy one of the following criteria:

a) The drug has been wholly manufactured on the production line fulfilling EU-GMP requirements or the production line fulfilling EU-GMP-equivalent requirements and announced by a drug authority of Vietnam to fulfill EU-GMP requirements or EU-GMP-equivalent requirements;

b) The drug has been wholly manufactured on the production line in a country that is concurrently a member state of PIC/s and a member state of ICH, certified by a competent authority of this country to fulfill PIC/s-GMP requirements, and announced by a drug authority of Vietnam to fulfill PIC/s-GMP requirements.

3. Category 3 consists of drugs which have been granted certificate of marketing authorization or import license for sale in Vietnam and of which evidence of bioequivalence has been announced by a drug authority of Vietnam.

4. Category 4 consists of drugs which have been granted certificate of marketing authorization in Vietnam and have been wholly manufactured in Vietnam on production lines fulfilling GMP requirements as certified by drug authorities of Vietnam.

5. Category 5 consists of drugs which have been granted certificate of marketing authorization or import license for sale in Vietnam.

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1. Heads of public health facilities shall make decision on procurement of original brand-name drugs or reference biologicals on the basis of opinions given by the Drug and Treatment Councils, for hospitals, or the Expert Councils, for other public health facilities (hereinafter referred to as “Councils”).

2. An original brand-name drug contract package may contain one or several original brand-name drugs or reference biologicals. Each drug is a part of the contract package. A drug included in the original brand-name drug contract package must be included in the list of original brand-name drugs or reference biologicals announced by the Ministry of Health of Vietnam, except original brand-name drugs or reference biologicals which are manufactured in countries other than SRA or EMA countries and announced by competent authorities before the effective date of the Circular No. 08/2022/TT-BYT dated September 05, 2022 of the Minister of Health of Vietnam.

Article 6. Contract packages of herbal drugs, drugs containing active ingredients combined with herbal materials, and traditional drugs

1. Category 1 consists of drugs which have been wholly manufactured in Vietnam on production lines fulfilling GMP requirements as certified by drug authorities of Vietnam and all herbal materials contained in which have been announced by a drug authority of Vietnam to fulfill GACP requirements.

2. Category 2 consists of drugs which have been wholly manufactured in Vietnam on production lines fulfilling GMP requirements as certified by drug authorities of Vietnam and at least 50% of herbal materials contained in which has been announced by a drug authority of Vietnam to fulfill GACP requirements.

3. Category 3 consists of drugs which have been wholly manufactured in Vietnam on production lines fulfilling GMP requirements as certified by drug authorities of Vietnam.

4. Category 4 consists of drugs which have been granted certificate of marketing authorization or import license for sale in Vietnam.

Article 7. Contract packages of traditional medicinal materials

A contract package of traditional medicinal materials may contain one or several traditional medicinal materials (except contract packages of traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly). Each list of traditional medicinal materials must be sorted by category of traditional medicinal materials. Each traditional medicinal material in a category is a part of the contract package. A contract package of traditional medicinal materials is divided into 03 categories based on technical criteria as follows:

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2. Category 2 consists of traditional medicinal materials which have been wholly manufactured in Vietnam on production lines fulfilling GMP requirements as certified by drug authorities of Vietnam.

3. Category 3 consists of traditional medicinal materials which fail to meet the criteria in Clause 1 and Clause 2 of this Article but have been granted certificate of marketing authorization or import license for sale in Vietnam.

Article 8. Contract packages of traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly

A contract package of traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly may contain one or several traditional medicinal materials. Each list of traditional medicinal materials must be sorted by category of traditional medicinal materials. Each traditional medicinal material in a category is a part of the contract package. A contract package of traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly is divided into 03 categories based on technical criteria as follows:

1. Category 1 consists of traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly which have been wholly manufactured in Vietnam on production lines fulfilling GMP requirements as certified by drug authorities of Vietnam and are made of herbal materials announced by a drug authority of Vietnam to fulfill GACP requirements.

2. Category 2 consists of traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly which have been wholly manufactured in Vietnam on production lines fulfilling GMP requirements as certified by drug authorities of Vietnam.

3. Category 3 consists of traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly which fail to meet the criteria in Clause 1 and Clause 2 of this Article but have been granted certificate of marketing authorization or import license for sale in Vietnam.

Article 9. Contract packages of herbal materials

A contract package of herbal materials may contain one or several herbal materials (except semi-finished herbal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly). Each list of herbal materials must be sorted by category. Each herbal material in a category is a part of the contract package. A contract package of herbal materials is divided into 03 categories based on technical criteria as follows:

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2. Category 2 consists of herbal materials which have been wholly undergone preliminary processing on production lines announced by a drug authority of Vietnam to fulfill GMP requirements for medicinal materials of herbal origin.

3. Category 3 consists of herbal materials which fail to meet the criteria specified in Clauses 1 and 2 of this Article.

Article 10. Contract packages of semi-finished herbal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly

A contract package of semi-finished herbal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly may contain one or several semi-finished herbal materials. Each list of semi-finished herbal materials must be sorted by category. Each semi-finished herbal material in a category is a part of the contract package. A contract package of semi-finished herbal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly is divided into 03 categories based on technical criteria as follows:

1. Category 1 consists of semi-finished herbal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly which have been wholly manufactured in Vietnam on production lines fulfilling GMP requirements for medicinal materials of herbal origin as certified by drug authorities of Vietnam and are made of herbal materials announced by a drug authority of Vietnam to fulfill GACP requirements.

2. Category 2 consists of semi-finished herbal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly which have been wholly manufactured in Vietnam on production lines fulfilling GMP requirements for medicinal materials of herbal origin as certified by drug authorities of Vietnam.

3. Category 3 consists of semi-finished herbal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly which fail to meet the criteria in Clause 1 and Clause 2 of this Article but have been granted certificate of marketing authorization or import license for sale in Vietnam.

Article 11. Provisions on bidding for drug categories

1. Principles for bidding for drug categories in a contract package:

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b) If a drug bidded for is manufactured by several facilities, all of them have to satisfy the technical criteria of the category into which they are sorted.

2. Generic drug contract package:

a) A bidder whose drug satisfies the criteria of category 1 shall be sorted into category 1, category 2 and category 5;

b) A bidder whose drug satisfies the criteria of category 2 shall be sorted into category 2 and category 5;

c) A bidder whose drug satisfies the criteria of category 3 shall be sorted into category 3 and category 5;

d) A bidder whose drug satisfies the criteria of category 4 shall be sorted into category 4 or category 5;

dd) A bidder whose drug satisfies the criteria of neither of category 1, category 2, category 3, and category 4 shall be sorted into category 5.

A bidder whose drug satisfies technical criteria of more than one category may be sorted into the categories as prescribed above.

E.g.: A bidder whose drug concurrently satisfies the criteria of category 3 and the criteria of category 4 shall be sorted into category 3, category 4 and category 5. A bidder whose drug concurrently satisfies the criteria of category 2 and the criteria of category 3 shall be sorted into category 2, category 3 and category 5.

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a) A bidder whose drug satisfies the criteria of category 1 shall be sorted into category 1, category 2, category 3 and category 4;

b) A bidder whose drug satisfies the criteria of category 2 shall be sorted into category 2, category 3 and category 4;

c) A bidder whose drug satisfies the criteria of category 3 shall be sorted into category 3 and category 4;

d) A bidder whose drug satisfies the criteria of neither of category 1, category 2 and category 3 shall be sorted into category 4.

4. Contract packages of traditional medicinal materials:

a) A bidder whose traditional medicinal material satisfies the criteria of category 1 shall be sorted into category 1, category 2 and category 3;

b) A bidder whose traditional medicinal material satisfies the criteria of category 2 shall be sorted into category 2 and category 3;

c) A bidder whose traditional medicinal material satisfies the criteria of neither of category 1 and category 2 shall be sorted into category 3.

5. Contract packages of traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly:

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b) A bidder whose traditional medicinal material satisfies the criteria of category 2 shall be sorted into category 2 and category 3;

c) A bidder whose traditional medicinal material satisfies the criteria of neither of category 1 and category 2 shall be sorted into category 3.

6. Contract packages of herbal materials:

a) A bidder whose herbal material satisfies the criteria of category 1 shall be sorted into category 1, category 2 and category 3;

b) A bidder whose herbal material satisfies the criteria of category 2 shall be sorted into category 2 and category 3;

c) A bidder whose herbal material satisfies the criteria of neither of category 1 and category 2 shall be sorted into category 3.

7. Contract packages of semi-finished herbal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly:

a) A bidder whose semi-finished herbal material satisfies the criteria of category 1 shall be sorted into category 1, category 2 and category 3;

b) A bidder whose semi-finished herbal material satisfies the criteria of category 2 shall be sorted into category 2 and category 3;

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8. The inclusion of foreign drugs manufactured under a processing contract or technology transfer contract in Vietnam in the contract packages of generic drugs and original brand-name drugs shall be made as follows:

a) A foreign drug manufactured under a processing contract or technology transfer contract in Vietnam shall be sorted into the drug categories prescribed in Point b of this Clause when it satisfies all of the following criteria:

- The drug is included in the list of drugs manufactured under processing contracts (with transfer of manufacturing technology) as certified by the Ministry of Health of Vietnam, and has a certificate of marketing authorization issued or renewed as prescribed in point a clause 1 Article 6 of the Circular No. 16/2023/TT-BYT dated August 15, 2023 of the Minister of Health prescribing marketing authorization for drugs manufactured in Vietnam under processing contracts or technology transfer contracts (hereinafter referred to as “Circular No. 16/2023/TT-BYT”) or is included in the list of drugs manufactured under technology transfer contracts and has a certificate of marketing authorization issued or renewed as prescribed in point a clause 1 Article 10 of the Circular No. 16/2023/TT-BYT;

- The drug is not included in the list of drugs announced by the Ministry of Health of Vietnam as prescribed in clause 2 Article 56 of the Law on Bidding (unless the drug is wholly manufactured in Vietnam when it is granted certificate of marketing authorization in Vietnam);

b) Inclusion of foreign drugs which are manufactured under processing contracts or technology transfer contracts in Vietnam and satisfy the requirements set out in Point a of this Clause shall be made as follows:

- A drug that is manufactured under a processing contract or technology transfer contract may be included in contract packages of original brand-name drugs if it is included in the list of original brand-name drugs or reference biologicals announced by the Ministry of Health of Vietnam, and satisfies the requirements in clause 2 Article 5 of this Circular. If a drug is included in the list of drugs procured through price negotiation announced by the Ministry of Health of Vietnam, it shall be procured through price negotiation;

- A drug shall be sorted into category 1, category 2, category 4 and category 5 if it meets all of the following criteria: The drug for which manufacturing technology is to be transferred or which will be manufactured under a processing contract meets the requirements in point a clause 1 Article 4 of this Circular; the drug is manufactured in Vietnam under a processing contract or technology transfer contract on the production line fulfilling EU-GMP requirements or the production line fulfilling EU-GMP-equivalent requirements and certified by a drug authority of Vietnam to fulfill EU-GMP requirements or EU-GMP-equivalent requirements.

- A drug shall be sorted into category 2, category 4 and category 5 if it meets all of the following criteria: The drug for which manufacturing technology is to be transferred or which will be manufactured under a processing contract meets the requirements in clause 2 Article 4 of this Circular; the drug is manufactured in Vietnam under a processing contract or technology transfer contract on the production line fulfilling EU-GMP requirements or the production line fulfilling EU-GMP-equivalent requirements and certified by a drug authority of Vietnam to fulfill EU-GMP requirements or EU-GMP-equivalent requirements.

- Other drugs shall be sorted in category 4 and category 5.

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Chapter III

PROCEDURES FOR SELECTION OF DRUG SUPPLIERS

Article 12. Drug supplier selection plans

Contents of a drug supplier selection plan shall comply with provisions of Article 39 of the Law on Bidding. To be specific:

1. Name of the contract package:

The contract package shall be named according to the division of contract package and drug categories in conformity with the provisions of Articles 4 through 10 of this Circular. If a contract package is divided into smaller parts, each of them must have a suitable name. Mandatory information on the contract package included in the drug supplier selection plan:

a) Each part of a contract package of generic drugs shall contain: name of active ingredient; content or concentration; route of administration, dosage form; drug category; measuring unit; quantity; unit price and total value;

b) Each part of a contract package of original brand-name drugs shall contain: name of the drug and the phrase “hoặc tương đương” (“or equivalent”) as prescribed in point c clause 9 Article 24 of the Government’s Decree No. 24/2024/ND-CP dated February 27, 2024 elaborating and providing measures for implementation of the Law on Bidding regarding contractor selection (hereinafter referred to as “Decree No. 24/2024/ND-CP”); name of active ingredient; content or concentration; route of administration, dosage form; measuring unit; quantity; unit price and total value. If a single active ingredient has several names of the original brand-name drug or reference biological on the list of original brand-name drugs and reference biologicals announced by the Ministry of Health of Vietnam, all names shall be specified;

c) Each part of a contract package of herbal drugs, drugs containing active ingredients combined with herbal materials, traditional drugs, semi-finished herbal materials, or traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly shall contain: name of the drug or semi-finished herbal material or traditional medicinal material in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly; route of administration, dosage form; measuring unit; quantity; drug category; unit price. Names of herbal drugs, drugs containing active ingredients combined with herbal materials, traditional drugs, semi-finished herbal materials, or traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly in the contract package shall be specified according to clause 3 of this Article;

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If a public health facility provides any additional information on a contract package specified in this Clause, it shall assume responsibility to provide explanation about such additional information.

2. Information about the dosage form of a drug in a contract package of generic drugs, herbal drugs, drugs containing active ingredients combined with herbal materials or traditional drugs in the drug supplier selection plan shall be provided in accordance with Appendix I enclosed herewith. The dosage forms (marked (*)) shall be specified separately in the drug supplier selection plan on the condition that:

a) It has the same dosage form as the original brand-name drug or reference biological which has the same active ingredient and route of administration or the drug which has the same active ingredient and route of administration and has been granted certificate of marketing authorization in a SRA or EMA country;

b) If a drug is not subject to the provisions of Point a of this Clause, the health facility shall clearly state the necessity and its demand for this dosage, and shall only use it in case another dosage form cannot be used or does not respond to treatment.

3. Names of herbal drugs, drugs containing active ingredients combined with herbal materials, traditional drugs, semi-finished herbal materials, or traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly in the contract package shall be specified according to the following provisions:

a) Only ingredients of herbal drugs, drugs containing active ingredients combined with herbal materials, traditional drugs, semi-finished herbal materials, or traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly are specified; their trade names shall not be specified;

b) For herbal drugs, drugs containing active ingredients combined with herbal materials, traditional drugs, semi-finished herbal materials, or traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly that have the same ingredients or dosage form: only contents or concentrations of the ingredients are specified if the difference in contents or concentrations leads to the difference in dose and indications according to opinions given by the Council.

4. Price of the contract package:

a) The price of the contract package shall comply with the provisions of Clause 1 Article 16 of the Decree No. 24/2024/ND-CP;

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c) Grounds for determination of the price of the contract package shall comply with provisions of Clause 2 Article 16 of the Decree No. 24/2024/ND-CP. Additionally, the public health facility may refer to the successful bids of drugs, herbal materials or traditional medicinal materials in the same technical criteria category of public health facilities or through provincial centralized bidding sessions conducted within the 12 months prior to the date of submission of the drug supplier selection plan for approval or through the national centralized bidding sessions or their effective negotiated prices under framework agreements published on the web portal of the Ministry of Health of Vietnam; or the website of the national centralized procurement unit; or obtained from the Vietnam E-Procurement System (VNEPS) or collected by the public health facility itself;

d) The proposed price of items with the same active ingredient, concentration or content, route of administration and dosage form in the generic drug contract package must comply with the following rules:

- The proposed price of category 1 shall not be higher than that of the original brand-name drug or reference biological;

- The proposed price of category 2 or category 3 shall not be higher than that of the original brand-name drug or reference biological and that of category 1;

- The proposed price of category 4 shall not be higher than the proposed prices of the original brand-name drugs or reference biologicals, and drugs of category 1, drugs of category 2 manufactured in Vietnam, and drugs of category 3;

- The proposed price of category 5 shall not be higher than the proposed prices of the original brand-name drugs or reference biologicals, and drugs of category 1, category 2, category 3 and category 4.

5. Funding sources: Funding sources must be clearly specified as prescribed in clause 3 Article 39 of the Law on Bidding. Where the duration of a package exceeds 01 year, the funding sources may be determined on the basis of the procurement cost estimate of the current budget year and planned procurement cost estimates of the following budget years.

6. Drug supplier selection method and procedure:

a) Drug supplier selection methods: Based on the price and nature of each contract package, one of the following drug supplier selection methods will be adopted: competitive bidding, limited bidding, direct contracting, shopping method, direct procurement, online quotation and online procurement;

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7. Drug supplier selection duration: The starting time and duration of the drug supplier selection must be clearly specified according to clause 5 Article 39 of the Law on Bidding.

8. Type of contract: The specific type of contract must be determined according to Article 64 of the Law on Bidding as the basis for preparation of bidding documents, request for proposals, and signing of the contract.

9. Duration of the contract package: The duration for execution of the contract package shall be specified according to clause 7 Article 39 of the Law on Bidding but shall not exceed 36 months.

10. Additional purchase option (if any):

a) If the additional purchase option applies, the quantity and estimated value of the additional purchase must be specified;

b) The additional purchase option may be applied if: the bidder has won the bid through the competitive bidding; the quantity of additional purchase does not exceed 30% of that of the corresponding drug specified in the contract; there is an approved cost estimate for the additional purchase; the unit price of the drug additionally purchased shall not be higher than that of the drug specified in the contract; and the additional purchase option is exercised during the validity period of the contract.

11. Supervision of bidding activities (if any).

Article 13. Submission, appraisal and approval of drug supplier selection plan

1. The request for approval of the drug supplier selection plan shall be made using the form in Appendix II enclosed herewith.

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2. The drug supplier selection plan shall be appraised according to Article 128 of the Decree No. 24/2024/ND-CP. The appraisal report is made using the form in the Appendix III enclosed herewith.

3. The approval of the drug supplier selection plan shall comply with Articles 40 and 41 of the Law on Bidding.

4. In case of procurement prescribed in clause 3 Article 3 of this Circular, the head of the unit in charge of the procurement or the unit appointed to take charge of the procurement shall organize appraisal and approval of the drug supplier selection plan.

Article 14. Preparing bidding documents and request for proposals (RFP)

1. The bidding documents or RFP shall be prepared according to the following provisions:

a) Bidding documents for contract packages of herbal materials and traditional medicinal materials shall be prepared using the forms in Appendix IV enclosed herewith;

b) Bidding documents for contract packages of original brand-name drugs; generic drugs; herbal drugs, drugs containing active ingredients combined with herbal materials or traditional drugs; traditional medicinal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly; semi-finished herbal materials in the form of glue, granule, powder, extract, essential oil, resin, gum or jelly shall be prepared using the forms in Appendix V enclosed herewith;

c) Regarding contract packages of drugs, herbal materials and traditional medicinal materials applying shopping method: health facilities shall prepare appropriate bidding documents using the forms in Appendix IV and Appendix V enclosed herewith and in conformity with provisions of point c clause 1 Article 45 of the Law on Bidding, clause 1 Article 79 of the Decree No. 24/2024/ND-CP.

d) RFP for contract packages of drugs applying common direct procurement or direct contracting procedure shall be prepared with reference to contents and forms of bidding documents and RFP issued by the Ministry of Health of Vietnam or the Ministry of Planning and Investment of Vietnam.

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Article 15. Evaluation of bids/proposals, consideration for contract award and use of drugs

1. Bids/proposals shall be evaluated in accordance with regulations of law on bidding. During evaluation of the drug-related information, in addition to the documents provided by the bidder, the procuring entity may use the drug-related information (certificate of marketing authorization or import license), information on fulfillment of GMP requirements of the manufacturer and other information in official dispatches and/or decisions giving approval of Drug Administration of Vietnam, or Traditional Medicine Administration of Vietnam, or published on the websites of these authorities.

2. The award of contract shall be subject to a bidder’s satisfaction of the prerequisites set out in Article 61 of the Law on Bidding and the issued bidding documents or RFP, and the following provisions:

a) The procuring entity shall propose the successful bidder for each part specified in the approved drug supplier selection plan (except the contract package specified in Point b Clause 2 of this Article). Only a drug, herbal material or traditional medicinal material in a category (which is a part of the contract package) which satisfies technical and quality requirements specified in the bidding documents or RFP and for which the bid after error correction and deviation adjustment minus (-) discount (if any) is the lowest bid (if the least-cost method is applied), or the evaluated bid is the lowest bid (if the lowest evaluated bid method is applied), shall be proposed;

b) Regarding a contract package of various drugs procured and packaged according to the requested quantity to serve disaster preparedness and control, search and rescue, or epidemic prevention and control: the procuring entity shall propose the successful bidder for the requested quantity (comprising multiple parts, called contract package) if the bidder meets technical and quality requirements specified in the bidding documents or RFP and its submitted bid for each part of the contract package and total value of the contract package after error correction and deviation adjustment minus (-) discount (if any) is the lowest bid (if the least-cost method is applied), or its evaluated bid is the lowest bid (if the lowest evaluated bid method is applied). In this case, the price of the contract package includes costs of packaging for the requested quantity of drugs.

3. If there are changes in a drug bidded for during the drug supplier selection or the drug supply but the substitute drug is not offered in the bid or proposal, the purchaser may consider allowing the drug supplier to supply the substitute drug to meet its medical examination and treatment requirements in the following cases:

a) There are changes in information on an original brand-name drug or reference biological in comparison with the information in the decision to grant marketing authorization:

- If the changes do not involve any contents of the decision to announce the list of original brand-name drugs and reference biologicals, a drug authority's approval for such changes is required or such changes must be disclosed following procedures for registration of changes in the marketing authorization;

- If there are changes in the contents of the decision to announce the list of original brand-name drugs and reference biologicals, such changes must be updated and included in the list of original brand-name drugs and reference biologicals;

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c) There are changes in the marketing authorization number of a generic drug or a new import license is issued but other information remains unchanged;

d) There are changes in the marketing authorization number of a generic drug or a new import license is issued and there is one or some of the following changes: change in name of the drug; change in name of the manufacturer or the method for specifying address of the manufacturer (but the manufacturing factory is unchanged); changes in the manufacturing factory which do not influence on the manufacturer’s fulfillment of GMP requirements; increase in shelf life of the drug; changes in packaging specifications but the content, concentration or volume of the drug specified in the bidding documents or RFP remains unchanged; changes in quality specifications of the drug as a result of application of new version of Pharmacopoeia as prescribed; changes in quality specifications but new qualification specifications shall not be lower than those of the selected drug or offered in the bid or proposal.

4. When supplying a substitute drug in the cases prescribed in Clause 3 of this Article, the supplier shall provide all necessary information for the procuring entity for its evaluation of the substitute drug, including: decisions and official dispatches on approval of the changes issued by competent authorities, and explanations and/or commitments on unchanged quality specifications of the substitute drug.

5. The head of the health facility and the successful drug supplier shall execute the drug supply contract in accordance with relevant laws on business contracts, and ensure that at least 80% of the value of each part in the signed contract shall be executed. For specially controlled drugs, intravenous fluids and other cases, after reporting to a competent authority, the health facility ensures that at least 50% of the value of each part in the signed contract shall be executed. For emergency treatment drugs, antidotes and rare drugs, public health facilities shall take actions appropriate for its actual conditions.

If a health facility fails to complete at least 80% or 50%, for specially controlled drugs and intravenous fluids, of the value of each part in the signed contract, its head shall be required to provide explanations to a competent person.

Article 16. Selection of drug suppliers for retailers located within precinct of public health facilities

Retailers located within the precinct of public health facilities shall purchase drugs according to the following provisions:

1. For drugs covered by the health insurance fund as prescribed by the law on health insurance:

a) Public health facilities may develop their own drug supplier selection plans and carry out the procurement adopting one of the contractor selection methods specified in clause 1 Article 20 of the Law on Bidding, documents elaborating this law, and provisions of this Circular;

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2. For cases other than those specified in Clause 1 of this Article, public health facilities shall make their own decision to purchase drugs in a manner that ensures openness, transparency, economic efficiency, and accountability.

Chapter IV

CENTRALIZED PROCUREMENT OF DRUGS

Section 1. GENERAL PROVISIONS

Article 17. Notification of centralized procurement roadmap/schedule

1. In order to facilitate public health facilities’ organization of drug supplier selection to ensure adequate drugs to serve their medical examination and treatment, centralized procurement units shall promptly notify such public health facilities of the drug supplier selection in the following cases:

a) The drug supplier selection has been carried out according to the drug supplier selection plan approved by a competent authority but, at least 03 months before the expiration of the signed framework agreement, the drug supplier selection result is not available;

b) The drug supplier selection has been carried out but no bids are received or none of the bidders meets relevant technical requirements or all bids after error correction and deviation adjustment minus (-) discount (if any) of the technically-responsive bidders included in list of bidders to be ranked exceed the price of the contract package, and the situation cannot be handled according to clause 8 Article 131 of the Decree No. 24/2024/ND-CP.

Within 10 days after the event in this Point is certified, centralized procurement units shall give notification thereof to health facilities under their management and relevant units.

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- If the bidding documents or RFP has been issued, the centralized procurement unit shall continue conducting the drug supplier selection according to the approved drug supplier selection plan;

- If the bidding documents or RFP is not yet issued, the centralized procurement unit shall notify such change to public health facilities whose demands have been consolidated and relevant units within 05 working days after it receives information on such change.

2. When it is unable to carry out the regulation as prescribed in Article 33 of this Circular, the national centralized procurement unit shall give written notification to health facilities and Departments of Health of provinces or central-affiliated cities (hereinafter referred to as “provincial Departments of Health”) so that they can proactively determine their demands and organize the drug supplier selection in the following cases:

- Public health facilities have used up the quantity of drugs specified in the framework agreement or have unexpected demands for drugs which are beyond the regulating capacity of the national centralized procurement unit;

- Public health facilities are established after demands for drugs have been determined, and the increased demands exceed the regulating capacity of the national centralized procurement unit;

For antiretroviral drugs, tuberculosis treatment drugs and vaccines: the national centralized procurement unit shall cooperate with the units in charge of consolidating demands prescribed in points a, b and c clause 1 Article 22 of this Circular (hereinafter referred to as “units in charge of consolidating demands”) in giving notification so that public health facilities can proactively organize the drug supplier selection to ensure adequate drugs to serve their medical examination and treatment.

3. When it is unable to carry out the regulation as prescribed in Article 34 of this Circular, provincial centralized procurement units shall give written notification of their provincial centralized procurement status to health facilities in their provinces so that they can proactively determine their demands and organize the drug supplier selection in the following cases:

a) Public health facilities have used up the quantity of drugs specified in the framework agreement or have unexpected demands for drugs which are beyond the regulating capacity of the relevant provincial centralized procurement unit;

b) Public health facilities are established after demands for drugs have been determined, and the increased demands exceed the regulating capacity of the relevant provincial centralized procurement unit.

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Article 18. Drug supplier selection method and procedure

1. Drug supplier selection methods:

a) Domestic competitive bidding: applied to all contract packages;

b) Direct contracting: applied to all contract packages for drugs which are included in the list of drugs procured through centralized procurement but must be purchased as prescribed in point c clause 1 Article 23 of the Law on Bidding and clause 1 Article 94 of the Decree No. 24/2024/ND-CP.

2. Drug supplier selection procedure: the single-stage two-envelope procedure shall be adopted as prescribed in Article 30 of the Law on Bidding, except the cases of contract packages prescribed in point b clause 1 of this Article where the simplified direct contracting procedure is applied at the purchaser’s discretion. Centralized procurement units shall only apply the single-stage two-envelope procedure as the law on science and technology provides for guidelines thereon.

Article 19. Implementation methods

The centralized procurement of drugs shall be carried out by signing a framework agreement, except for the following cases where a contract may be signed directly:

1. Procurement of drugs and vaccines serving the implementation of expanded immunization programs and/or projects funded by state budget under decisions of the Minister of Health of Vietnam or Chairpersons of Provincial People’s Committees.

2. Procurement of drugs under programs and/or projects funded by ODA, aid, sponsorship from domestic and overseas sponsors who require direct contract conclusion.

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2. The drug supplier selected applying centralized procurement method shall supply drugs with the agreed quantity and schedule specified in the contract signed with each health facility.

Centralized drug procurement units shall cooperate with units in charge of consolidating demands and successful drug suppliers in regulating the contract execution in a manner that ensures sufficient supply of drugs for health facilities.

3. Duration of a national or provincial centralized procurement package shall be specified in the drug supplier selection plan approved by a competent authority but shall not exceed 36 months from the effective date of the signed contract until the day on which contractual works are accepted and all contractual obligations are fulfilled.

4. Provincial Departments of Health, health facilities, units in charge of consolidating demands and provincial centralized procurement units shall review and consolidate demands in terms of list of drugs and quantities of each of health facilities under their management, and regulate the execution of contracts in a manner ensuring that at least 80% of the quantity of each part in the signed framework agreement or contract shall be supplied. For specially controlled drugs, intravenous fluids and other cases, after reporting to a competent authority, the health facility ensures that at least 50% of the quantity of each part in the signed framework agreement or contract shall be supplied. For emergency treatment drugs, antidotes and rare drugs, public health facilities shall take actions appropriate for its actual conditions.

Article 21. Changes in information and substitution of drugs during drug supplier selection or contract execution

If there are changes in a drug bidded for during the drug supplier selection or the drug supply but the substitute drug is not offered in the bid or proposal, the centralized procurement unit shall consider allowing the substitution of drug according to clauses 3 and 4 Article 15 of this Circular in order to ensure the supply of adequate drugs to serve medical examination and treatment.

Section 2. PREPARATION, APPRAISAL AND APPROVAL OF DRUG SUPPLIER SELECTION PLANS, BIDDING DOCUMENTS OR REQUEST FOR PROPOSALS

Article 22. Determination of demands for national centralized procurement

1. Units in charge of consolidating demands:

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Vietnam Administration of HIV/AIDS Control plays the leading role and cooperates with the national centralized procurement unit in determining and consolidating demands according to the following provisions:

- Public health facilities under management of the Ministry of Health of Vietnam, public health facilities under management of Ministries or central-government authorities located in provinces or central-affiliated cities, and public health facilities under management of provincial governments shall determine their demands for antiretroviral drugs in terms of list of antiretroviral drugs, detailed quantities, categories, additional quantities (if any) and supply schedules, and submit reports on their demands to HIV/AIDS Control Agencies of province where the public health facility is headquartered;

- Provincial HIV/AIDS Control Agencies shall review, consolidate and assume responsibility for demands for antiretroviral drugs of public health facilities in their provinces or cities, and send consolidated reports on such demands to provincial Departments of Health for consideration and decision;

- Provincial Departments of Health shall send their written proposals indicating demands for antiretroviral drugs, which are accompanied with the documents in Article 24 of this Circular, to Vietnam Administration of HIV/AIDS Control;

- Vietnam Administration of HIV/AIDS Control shall consolidate and assume responsibility for consolidated demands, and send its proposal for procurement of antiretroviral drugs to the national centralized procurement unit.

b) For tuberculosis treatment drugs:

The National Lung Hospital plays the leading role and cooperates with the national centralized procurement unit in giving instructions for determining and consolidating demands for tuberculosis treatment drugs, or, based on the quantity of tuberculosis treatment drugs actually used by health facilities and suppliers’ capacity in the previous period, the estimated number of patients, determine and assume responsibility for determined demands for tuberculosis treatment drugs and additional quantities (if any), and sending a written proposal for procurement of tuberculosis treatment drugs to the national centralized procurement unit;

c) For vaccines:

The General Department of Preventive Medicine plays the leading role and cooperates with the National Institute of Hygiene and Epidemiology and the national centralized procurement unit in giving instructions for determining and consolidating demands for vaccines, or, based on the quantity of vaccines actually used by health facilities and suppliers’ capacity in the previous period, and the estimated number of vaccinees, determine demands for vaccines, and additional quantities (if any). General Department of Preventive Medicine shall assume responsibility for determined demands and send a written proposal for procurement of vaccines to the national centralized procurement unit;

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The national centralized procurement unit shall give instructions for determining and consolidating demands as follows:

- Public health facilities under management of the Ministry of Health of Vietnam shall determine their demands in terms of list of drugs, detailed quantities, including additional quantities (if any), assume responsibility for their determined demands, and submit reports on their demands to the national centralized procurement unit;

- Public health facilities under management of Ministries or central-government authorities, infirmaries of regulatory authorities, and private health facilities shall determine their demands in terms of list of drugs, detailed quantities, and additional quantities (if any), and submit reports on their demands to Departments of Health of provinces or cities where the health facility is headquartered; provincial Departments of Health shall consolidate demands and send reports to the national centralized procurement unit. Health facilities assume responsibility for determined demands submitted to the national centralized procurement unit;

- Public health facilities under management of provincial Departments of Health shall determine their demands in terms of list of drugs, detailed quantities, and additional quantities (if any), and submit reports on their demands to provincial centralized procurement units. Provincial centralized procurement units shall consolidate demands and submit consolidated reports to provincial Departments of Health. Provincial Departments of Health shall consider and decide demands, and assume responsibility for their decision, and then send written proposals for procurement of drugs to the national centralized procurement unit.

2. Consolidation of demands:

a) Provincial Departments of Health, health facilities, and units in charge of consolidating demands shall consolidate and send consolidated demands within a time limit which is prescribed by the national centralized procurement unit but does not exceed 45 days;

b) If Provincial Departments of Health, health facilities, or units in charge of consolidating demands do not send their consolidated demands within 45 days from the day on which the national centralized procurement unit makes initial request for consolidation of demands, they shall be considered to have no demands for drugs;

c) If a Provincial Department of Health, health facility, or unit in charge of consolidating demands fails to send adequate documents as prescribed in Article 24 of this Circular, the national centralized procurement unit shall send a written request for submission of additional documents. Within 5 working days from the date of the request sent by the national centralized procurement unit, if the Provincial Department of Health, health facility, or unit in charge of consolidating demands still fails to submit the requested documents or submits inadequate documents, the national centralized procurement unit shall, based on the quantity of the drug used and proposals of Provincial Departments of Health, health facilities, and units in charge of consolidating demands, determine and consolidate demands of health facilities, provided that the increased quantity does not exceed 30% of the quantity of that drug used in the previous period or in 12 months prior to the date of the request for consolidation of demands;

d) Where necessary, in order to ensure the supply of adequate drugs to serve medical examination and treatment of public health facilities, the national centralized procurement unit may determine demands, including additional quantities (if any), based on the quantity of the drug actually used in the previous period or in 12 months prior to the date of determination of demands, provided that the increased quantity shall not exceed 30% of the quantity of that drug actually used in the previous period or in 12 months prior to the date of determination of demands. Then, the national centralized procurement unit shall send written request to public health facilities under management of the Ministry of Health of Vietnam, public health facilities under management of Ministries or central-government authorities and provincial centralized procurement units for review of the determined demands. If any requested unit fails to give its response within 30 days from the date of the written request for review of demands sent by the national centralized procurement unit, it shall be considered to have no demand;

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Within 10 days from the date of the written request for opinions sent by the national centralized procurement unit, Vietnam Social Security shall give its written response. If Vietnam Social Security fails to give its response by the abovementioned deadline or gives its response after the abovementioned deadline, Vietnam Social Security shall be considered to have agreed with the consolidated demand presented by the national centralized procurement unit.

Where Vietnam Social Security disagrees with the consolidated demand presented by the national centralized procurement unit, the national centralized procurement unit shall receive and clarify opinions given by Vietnam Social Security. If the national centralized procurement unit disagrees with any opinion given by Vietnam Social Security, within 05 working days from the date of receipt of opinions given by Vietnam Social Security, it shall organize a meeting with Vietnam Social Security to reach an agreement. Opinions given by the person who attends the meeting as assigned by Vietnam Social Security shall be considered the official opinions given by Vietnam Social Security. Any discrepancies which cannot be resolved at the meeting shall be submitted to the Ministry of Health of Vietnam for consideration and decision.

Where Vietnam Social Security does not assign its representative to attend the meeting, it shall be considered to have agreed with the consolidated demand presented by the national centralized procurement unit after this unit has received and clarified opinions of Vietnam Social Security.

Article 23. Determination of demands for provincial centralized procurement

1. Determination of demands for provincial centralized procurement:

a) Health facilities under management of provincial governments shall determine their demands in terms of list of drugs, detailed quantities, including additional quantities (if any), and submit reports on their demands to provincial centralized procurement units;

b) Private health facilities engaging in provincial centralized procurement shall determine their demands in terms of list of drugs, detailed quantities, including additional quantities (if any), submit reports on their demands to provincial centralized procurement units, and assume responsibility for their submitted demands.

2. Consolidation of demands for provincial centralized procurement:

a) The time limit for submission of demands shall be decided by provincial centralized procurement units but shall not exceed 30 days. If a health facility does not submit their demands within 30 days from the day on which the provincial centralized procurement unit makes initial request for consolidation of demands, it shall be considered to have no demands;

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c) After consolidating demands, the provincial centralized procurement unit shall send a written request to the Social Security Office of province or city (hereinafter referred to as “provincial Social Security Office”) for its opinions on demands of public health facilities under its management. To be specific:

- Within 10 days from the date of the written request for opinions sent by the provincial centralized procurement unit, the provincial Social Security Office shall give its response to the provincial centralized procurement unit. If the provincial Social Security Office fails to give its response by the abovementioned deadline or gives its response after the abovementioned deadline, the provincial Social Security Office shall be considered to have agreed with the consolidated demand presented by the provincial centralized procurement unit.

- Where the provincial Social Security Office disagrees with the consolidated demand presented by the provincial centralized procurement unit, the provincial centralized procurement unit shall receive and clarify opinions given by the provincial Social Security Office. If the provincial centralized procurement unit disagrees with any opinion given by the provincial Social Security Office, within 05 working days from the date of receipt of opinions given by the provincial Social Security Office, it shall organize a meeting with the provincial Social Security Office to reach an agreement. Opinions given by the person who attends the meeting as assigned by the provincial Social Security Office shall be considered the official opinions given by the provincial Social Security Office. Any discrepancies which cannot be resolved at the meeting shall be submitted to provincial competent authorities for consideration and decision.

Where the provincial Social Security Office does not assign its representative to attend the meeting, it shall be considered to have agreed with the consolidated demand completed by the provincial centralized procurement unit after receiving and clarifying opinions given by the provincial Social Security Office.

Article 24. Required documents for registration of centralized procurement demands

When submitting its demand for centralized procurement, a health facility shall be required to submit the following documents:

1. Summary report on implementation of the drug supplier selection result and drug use in the previous 12 months and in the previous period prior to the date of notification of the consolidation of demands, the drug inventory and the planned quantity of drug of the previous period that has not been used at the date of determination of the health facility's demand.

2. A brief explanation for the demand for the proposed drug. In case there is an increase in the quantity by more than 30% of the quantity of the drug used in the previous period or in 12 months prior to the date of determination of demands, detailed explanations must be provided.

3. Documents used as the basis for the drug supplier selection plan as prescribed.

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- The Drug and Treatment Council in respect of the list of drugs, quantities thereof and demands of health facilities.

- Provincial Department of Health in respect of drugs included in the list of drugs procured through centralized procurement of health facilities under management of the Provincial Department of Health, including private health facilities and health facilities under management of Ministries or central-government authorities located in the province (except health facilities affiliated to the Ministry of Health of Vietnam).

When submitting consolidated reports on demands of a new health facility or a health facility that first has demands for the drug, the documents in clause 1 of this Article are not required.

Article 25. Formulation, appraisal and approval of drug supplier selection plan

1. Formulation of drug supplier selection plan:

A drug supplier selection plan shall be prepared according to the following provisions:

a) If the demand for a drug is high and a single supplier is unable to supply total quantity for that drug, it may be divided into smaller contract packages by regions or socio-economic areas to ensure the competitiveness in bidding. The selection of more than one supplier to execute a part of the contract package, where necessary, must be clearly stated in the drug supplier selection plan;

b) Division of a contract package and contents of a drug supplier selection plan shall comply with Articles 4 through 12 of this Circular.

2. Appraisal of drug supplier selection plan:

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b) The appraising agency shall play the leading role in organizing the appraisal of the drug supplier selection plan for centralized procurement as prescribed in clause 2 Article 13 of this Circular;

c) Vietnam Social Security shall engage in the appraisal of the drug supplier selection plan as prescribed in clause 4 Article 94 of the Decree No. 24/2014/ND-CP. To be specific:

Within 10 days from the receipt of the documents submitted for approval of the drug supplier selection plan, the appraising agency shall send a written request to Vietnam Social Security (in case of national centralized procurement) or the provincial Social Security Office (in case of provincial centralized procurement) (hereinafter referred to as “Social Security Office”) for its opinions about the drug supplier selection plan, except the contents of procurement which have been unanimously agreed upon as prescribed in point dd clause 2 Article 22 and point c clause 2 Article 23 of this Circular;

Within 10 days from the receipt of the written request for opinions, the Social Security Office shall clearly give its opinions on the drug supplier selection plan. If the Social Security Office fails to give its opinions by the abovementioned deadline or gives its opinions after the abovementioned deadline, it shall be considered to have agreed with all contents of the drug supplier selection plan presented by the appraising agency.

Where the Social Security Office disagrees with any contents of the drug supplier selection plan presented by the appraising agency, the appraising agency shall cooperate with the centralized procurement unit in receiving and clarifying opinions given by the Social Security Office. If the appraising agency disagrees with any opinion given by the Social Security Office, within 5 working days from the date of receipt of opinions given by the Social Security Office, it shall organize a meeting with the Social Security Office to reach an agreement. Opinions given by the person who attends the meeting as assigned by the Social Security Office shall be considered the official opinions given by the Social Security Office. Any discrepancies which cannot be resolved at the meeting shall be submitted to the Ministry of Health of Vietnam (in case of national centralized procurement) or a provincial competent authority (in case of provincial centralized procurement) for consideration and decision.

Where the Social Security Office does not assign its representative to attend the meeting, it shall be considered to have agreed with the drug supplier selection plan completed by the centralized procurement unit after receiving and clarifying opinions given by the Social Security Office.

3. Approval of drug supplier selection plan:

a) The Ministry of Health of Vietnam shall consider approving the drug supplier selection plan for national centralized procurement on the basis of the documents submitted for approval of the drug supplier selection plan by the national centralized procurement unit, appraisal report and request of the appraising agency;

b) The provincial competent person shall consider approving the drug supplier selection plan for provincial centralized procurement on the basis of the documents submitted for approval of the drug supplier selection plan by the provincial centralized procurement unit, appraisal report and request of the appraising agency.

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1. Based on the approved drug supplier selection plan, the centralized procurement unit shall organize the preparation, appraisal and approval of the bidding documents or RFP according to Article 14 of this Circular.

2. Where more than one supplier will be selected to execute a part of the contract package or an undivided contract package, the bidding documents or RFP must impose requirements for bid submission, and methods for evaluation and ranking of bidders, including provisions allowing bidders to submit bids according to their supply capacity so that bidders can develop measures for submitting bids according to their supply capacity.

Section 3. ORGANIZATION OF DRUG SUPPLIER SELECTION

Article 27. Evaluation of bids or proposals

1. Depending on the nature of the contract package, drug supplier selection method and procedure, the procuring entity shall adopt appropriate method for evaluating bids or proposals according to Article 58 of the Law on Bidding. The method for evaluating bids or proposals must be specified in the bidding documents or RFP.

2. Evaluation of bids or proposals for each part of the contract package which is divided into smaller parts shall comply with provisions of the Law on Bidding, except the cases prescribed in point b clause 2 Article 15 of this Circular. To be specific:

a) The drug-related information shall be evaluated on the basis of the certificate of marketing authorization or import license, information on fulfillment of GMP requirements of the manufacturer and other information in official dispatches and/or decisions giving approval of Drug Administration of Vietnam, or Traditional Medicine Administration of Vietnam, or published on the websites of the Drug Administration of Vietnam, the Traditional Medicine Administration of Vietnam, the national centralized procurement unit (if any) and provincial centralized procurement units (if any);

b) The evaluation of capacity and experience of a bidder shall be based on the total parts of the contract package in which the bidder participates.

Article 28. Ranking of bidders and award of contract

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The expert team shall prepare and send a report on evaluation of bids or proposals to the centralized procurement unit for consideration and ranking of bidders.

2. Award of contract:

The award of contract shall be subject to a bidder’s satisfaction of the prerequisites set out in Article 61 of the Law on Bidding and the issued bidding documents or RFP.

Section 4. APPRAISAL, APPROVAL, DISCLOSURE AND IMPLEMENTATION OF DRUG SUPPLIER SELECTION RESULT

Article 29. Submission of drug supplier selection result for appraisal and approval

Based on the report on evaluation of bids or proposals, the centralized procurement unit shall organize appraisal and approval of the drug supplier selection result according to Article 13 of this Circular.

Article 30. Completion, signing and disclosure of framework agreement

1. The centralized procurement unit and the selected supplier shall complete contents of the framework agreement according to point e clause 1 Article 89 of the Decree No. 24/2024/ND-CP as the basis for signing of the framework agreement.

2. If a supplier wins bids for the same product in different contract packages, the supplier shall be required to submit a statement that they have adequate experience and capacity to supply drugs according to the specified quality and supply schedule; this statement shall be considered an integral part of the framework agreement.

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a) publish the framework agreement on the web portal of the Ministry of Health of Vietnam, and on its website, and publish information on the drug supplier selection result according to point a clause 1 and clause 4 Article 8 of the Law on Bidding;

b) send written notification of the drug supplier selection result to bidders within 05 working days from the day on which the drug supplier selection result is approved;

c) send written notification to public health facilities under management of the Ministry of Health of Vietnam; public health facilities under management Ministries or central-government authorities; provincial Departments of Health and units in charge of consolidating demands.

4. Provincial Departments of Health, health authorities of Ministries or central-government authorities, and units in charge of consolidating demands shall notify the drug supplier selection result and the framework agreement to health facilities within the scope of the framework agreement.

5. Each provincial centralized procurement unit shall:

a) publish the framework agreement on the web portal of the provincial People's Committee, the website of the provincial Department of Health, and on its website (if any), and publish information on the drug supplier selection result according to point a clause 1 and clause 4 Article 8 of the Law on Bidding;

b) send written notification of the drug supplier selection result to bidders within 05 working days from the day on which the drug supplier selection result is approved;

c) send written notification to health facilities under management of the provincial government.

Article 31. Completion and signing of drug supply contract

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1. The compliance with supply conditions set out in the framework agreement must be ensured.

2. The price of each drug in the contract does not exceed the successful bid announced by the relevant centralized procurement unit.

3. Duration of the contract package is specified in the drug supplier selection plan approved by a competent authority but shall not exceed 36 months from the effective date of the signed contract until the day on which all contractual obligations are fulfilled.

Article 32. Payment for and finalization of drug supply contracts

1. Centralized procurement units (in case of direct conclusion of contract) or health facilities (in case of conclusion of the framework agreement) shall make payments and carry out finalization of contracts with drug suppliers in accordance with regulations of law and under terms and conditions of the signed contracts.

2. The written approval for transfer of drugs between health facilities given by a centralized procurement unit shall be considered a part of the drug supply contract, and the basis for the health facility and the drug supplier to sign an appendix to the contract (if the quantity of drug to be transferred is included in the framework agreement) or sign a new contract (if the quantity of drug to be transferred is not included in the framework agreement).

Article 33. Regulating implementation of framework agreement for national centralized procurement

1. The units in charge of consolidating demands prescribed in clause 1 Article 22 of this Circular assume responsibility to regulate the use of drugs supplied by the supplier that is selected through the national centralized bidding under the signed framework agreement or contract.

2. A selected drug may be regulated by executing the additional purchase option and making the drug transfer between health facilities. Such regulation shall be made following the procedures for regulating drugs procured through national centralized procurement announced by the national centralized procurement unit. A health facility is only eligible for replenishment of a drug procured through national centralized procurement on the condition that:

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b) Drugs of other categories of the same active ingredient, concentration or content have to be suspended from supply or marketing or removed from the list of drugs of evidenced bioequivalence after they are selected;

c) The selected supplier is unable to fully supply the quantity of drugs of a category as specified in the signed contract due to force majeure events. In this case, the supplier’s written notification enclosed with relevant supporting documents must be provided; or

d) A drug is necessary to meet treatment demands. In this case, the health facility is required to provide convincing explanation.

3. If the demand for a drug of a health facility under management of a Ministry or central-government authority or provincial government exceeds the quantity of that drug supplied under the framework agreement, the provincial centralized procurement unit or the provincial unit in charge of consolidating demands (for antiretroviral drugs, tuberculosis treatment drugs, or vaccines) shall be notified to consolidate and regulate the transfer of drug quantities between provincial health facilities, provided that total quantity of drug to be supplied to all health facilities in that province or city under the framework agreement must not be exceeded. Within 10 days from the receipt of a written request for replenishment of drugs from a health facility, the provincial centralized procurement unit or the provincial unit in charge of consolidating demands shall give its written response or make regulation.

If demands for drugs of health facilities under management of Ministries, central-government authorities or provincial governments exceed the regulating capacity of provincial centralized procurement units or provincial units in charge of consolidating demands (for antiretroviral drugs, tuberculosis treatment drugs, or vaccines), or demands for drugs of health facilities under management of the Ministry of Health of Vietnam exceed the drug quantities distributed under the framework agreement, or health facilities’ unexpected demands for drugs have not been included in the drug supplier selection plan, provincial centralized procurement units or provincial units in charge of consolidating demands (for antiretroviral drugs, tuberculosis treatment drugs, or vaccines) or health facilities under management of the Ministry of Health of Vietnam shall inform such demands to units in charge of consolidating demands to regulate the transfer of drug quantities between health facilities.

Within 05 working days from the receipt of the written request for replenishment of drugs from provincial health facilities, provincial centralized procurement units or provincial units in charge of consolidating demands (for antiretroviral drugs, tuberculosis treatment drugs, or vaccines) shall send reports on such request to units in charge of consolidating demands.

Within 15 days from the receipt of the written request from the provincial centralized procurement unit or the provincial unit in charge of consolidating demands (for antiretroviral drugs, tuberculosis treatment drugs, or vaccines) or a health facility under management of the Ministry of Health of Vietnam, units in charge of consolidating demands shall give their written responses or make regulation. If a request is refused, reasons for such refusal must be indicated in the written response.

4. After the quantity of drugs procured under the framework agreement has been fully transferred between health facilities to meet their demands, the national centralized procurement unit or unit in charge of consolidating demands shall make regulation by executing the additional purchase option. The quantity of drugs replenished to health facilities shall not exceed the quantity specified in the approved drug supplier selection plan, including additional quantity received by executing the additional purchase option.

5. Drugs are regulated to meet demands of health facilities and ensure the execution of signed contracts as prescribed in clause 4 Article 20 of this Circular.

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Article 34. Regulating implementation of framework agreement for provincial centralized procurement

1. Provincial centralized procurement units assume responsibility to regulate the use of drugs supplied by the supplier that is selected through the provincial centralized bidding under the signed framework agreement or contract.

2. A selected drug may be regulated by executing the additional purchase option and making the drug transfer between health facilities. Such regulation shall be made following the procedures for regulating drugs procured through provincial centralized procurement announced by the centralized procurement unit (if any).

3. If the demand for a drug of health facilities exceeds the quantity of that drug supplied under the framework agreement or a health facility's unexpected demand for a drug has not been included in the drug supplier selection plan, the provincial centralized procurement unit shall be notified to consolidate and regulate the transfer of drug quantities between provincial health facilities, provided that total quantity of drug to be supplied to all health facilities in that province or city under the framework agreement must not be exceeded.

Within 10 days from the receipt of a written request for replenishment of drugs from a health facility, the provincial centralized procurement unit shall give its written response or make regulation. If a request is refused, reasons for such refusal must be indicated in the written response.

4. After the quantity of drugs procured under the framework agreement has been fully transferred between health facilities, the provincial centralized procurement unit shall make regulation by executing the additional purchase option on the condition that total quantity of drugs replenished to health facilities shall not exceed the quantity specified in the approved drug supplier selection plan, including additional quantity received by executing the additional purchase option.

5. Drugs are regulated to meet demands of health facilities and ensure the proper use of drugs as prescribed in clause 4 Article 20 of this Circular.

6. A written request for replenishment of a drug shall be made using the form in Appendix VI enclosed herewith.

Article 35. Additional purchase option in centralized procurement

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1. The centralized procurement unit may purchase an additional amount of drugs which must not exceed the maximum permissible limit specified in the approved drug supplier selection plan to additionally supply them for health facilities.

2. If a health facility wants to use an additional amount of a drug under the framework agreement which is beyond the regulating capacity and exceeds the approved quantity, after obtaining a written consent from the centralized procurement unit, it may purchase an additional amount of drugs within the scope of the additional purchase option. In this case, the quantity, value and supply schedule of the drug additionally purchased must be clearly specified in the contract or its appendix.

3. The centralized procurement unit or health facility may make multiple additional purchases provided that total amount of drug additionally purchased must not exceed the maximum permissible limit specified in the approved drug supplier selection plan.

Article 36. Reporting on implementation of supplier selection result in national centralized bidding

1. By the 10th of each month and the 10th of the first month of each quarter or upon request, selected suppliers shall prepare reports on their execution of contracts for supply of drugs included in lists of drugs procured through national centralized bidding using the form in Appendix VII enclosed herewith, and submit them to the national centralized procurement unit and Vietnam Administration of HIV/AIDS Control (for antiretroviral drugs).

2. By the 10th of the first month of each quarter or upon request, health facilities under management of provincial governments, Ministries or central-government authorities shall prepare reports on their execution of contracts for supply of drugs included in lists of drugs procured through national centralized bidding using the form in Appendix VII enclosed herewith, and send them to provincial centralized procurement units and provincial HIV/AIDS Control Agencies (for antiretroviral drugs).

3. By the 15th day of the first month of each quarter or upon request, provincial centralized procurement units and health facilities under management of the Ministry of Health of Vietnam shall prepare reports on their execution of contracts for supply of drugs included in lists of drugs procured through national centralized bidding using the form in Appendix VII enclosed herewith, and send them to the national centralized procurement unit and Vietnam Administration of HIV/AIDS Control (for antiretroviral drugs).

Article 37. Reporting on implementation of supplier selection result in provincial centralized bidding

1. By the 10th day of the first month of each quarter or upon request, selected suppliers shall prepare reports on their execution of contracts for supply of drugs included in lists of drugs procured through provincial centralized bidding using the form in Appendix VII enclosed herewith, and submit them to provincial centralized procurement units.

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Chapter V

IMPLEMENTATION

Article 38. Effect

1. This Circular comes into force from May 17, 2024.

2. From the effective date of this Circular, the following regulations shall cease to have effect:

a) The Circular No. 15/2019/TT-BYT dated July 11, 2019 of the Minister of Health of Vietnam;

b) Article 5 of the Circular No. 15/2020/TT-BYT dated August 10, 2020 of the Minister of Health of Vietnam;

c) Clause 8 Article 1 of the Circular No. 29/2020/TT-BYT dated December 31, 2020 of the Minister of Health of Vietnam;

d) The Circular No. 15/2021/TT-BYT dated September 24, 2021 of the Minister of Health of Vietnam;

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e) The Circular No. 22/2020/TT-BYT dated December 02, 2020 of the Minister of Health of Vietnam;

g) Chapter III of the Circular No. 36/2021/TT-BYT dated December 31, 2021 of the Minister of Health of Vietnam;

h) The Circular No. 09/2022/TT-BYT dated September 09, 2022 of the Minister of Health of Vietnam.

Article 39. Terms of reference

If any legislative documents referred to in this Circular are superseded or amended, the new ones shall apply.

Article 40. Implementation organization

1. Heads of central-government authorities shall instruct public health facilities under their management to select qualified drug suppliers in accordance with this Circular and regulations of the law on contractor selection.

2. The Minister of Health of Vietnam shall delegate authority to decide the procurement of drugs to agencies and units using funding under the management of the Ministry of Health of Vietnam to serve their operation and performance of tasks assigned by the Minister of Health of Vietnam.

3. Drug Administration of Vietnam, and Traditional Medicine Administration of Vietnam shall update and publish the following information on their websites:

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- List of drug authorities of SRA or EMA countries and List of SRA or EMA countries;

- List of drug authorities of countries that are members of PIC/s and ICH;

- List of drug manufacturers in Vietnam fulfilling WHO-GMP requirements as certified by drug authorities of Vietnam;

- List of drug manufacturers fulfilling EU-GMP requirements or EU-GMP-equivalent requirements; List of drug manufacturers fulfilling PIC/s-GMP requirements; List of drug manufacturers fulfilling WHO-GMP requirements;

- List of drug manufacturers fulfilling GMP requirements for herbal drugs or traditional drugs as certified by the Ministry of Health of Vietnam;

- List of drug manufacturers in Vietnam fulfilling GMP requirements for herbal materials or traditional medicinal materials as certified by the Ministry of Health of Vietnam;

- List of drug manufacturers in Vietnam fulfilling GMP requirements for medicinal materials being herbal ingredients as certified by the Ministry of Health of Vietnam.

b) Lists of drugs serving drug supplier selection, including:

- List of drugs, traditional medicinal materials and semi-finished herbal materials granted certificate of marketing authorization or import license;

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- List of original brand-name drugs and reference biologicals manufactured under processing contracts or technology transfer contracts in Vietnam;

- List of drugs of evidenced bioequivalence;

- List of drugs wholly manufactured in Vietnam on production lines fulfilling category-1 drug category criteria as prescribed in Point c Clause 1 Article 4 of this Circular;

- List of traditional medicinal materials in the following dosage forms: glue, granule, powder, extract, essential oil, resin, gum or jelly meeting quality standards according to the Ministry of Health of Vietnam’s regulations on management of quality of herbal materials and traditional drugs;

- List of drugs included in the List of national products;

- List of drugs awarded the "Ngoi sao thuoc Viet” (“Star of Vietnamese medicines”) by the Ministry of Health of Vietnam;

- List of herbal materials which are planted, collected or obtained naturally and certified to fulfill GACP requirements by the Ministry of Health of Vietnam;

- List of processed drugs (without transfer of drug manufacturing technology);

- List of processed drugs (with transfer of drug manufacturing technology); List of drugs which are manufactured under technology transfer contracts and granted new or renewed certificate of marketing authorization;

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- List of drugs and manufacturers and suppliers committing violations against quality standards;

c) List of capable, experienced and reputable drug manufacturers and suppliers to be invited to limited bidding.

4. Health facilities requesting for information disclosure specified in Point c Clause 1 Article 4 of this Circular shall provide the following documents and be legally responsible for the accuracy of the provided documents:

a) Legal documents issued by drug authorities of SRA or EMA countries. These documents must bear full names and signatures of signatories and seals of competent authorities of the issuing countries and bear the consular legalization as prescribed (originals or certified true copies);

In case of electronic legal documents, including those without full names and signatures of signatories and seals of competent authorities of the issuing countries, the health facility shall send the documents obtained from the English website of the issuing authority to the Ministry of Health of Vietnam (via the Drug Administration of Vietnam). These documents shall bear the health facility’s seal and be accompanied with a document containing the download links. The health facility shall be legally responsible for the legitimacy and accuracy of these documents;

The legal documents shall have the following contents: drug name, active ingredients, their concentration or content, dosage form, name and address of the manufacturer, and certification that the drug is granted marketing authorization in that country.

b) Statements proving that the drug sold in Vietnam and the drug granted certificate of marketing authorization by a drug authority of a SRA or EMA country have the same dosage form, production process, specifications and testing methods; active ingredients and excipients have the same specifications, manufacturer and manufacturing facility or site as prescribed in Appendix VIII enclosed herewith.

5. Centralized procurement units shall take charge of supervising and expediting the supply of drugs by selected suppliers, health facilities’ use of drugs, and performance of regulation tasks under signed framework agreements.

6. Bidders for contract packages of herbal drugs, drugs containing active ingredients combined with herbal materials, or traditional drugs, or contract packages of herbal materials, semi-finished herbal materials or traditional medicinal materials of herbal origin announced by drug authorities of Vietnam to have fulfilled GACP requirements shall wholly assume legal responsibility for the following contents:

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b) The selected drug, traditional medicinal material or herbal material is manufactured or supplied from herbal materials which have been announced by drug authorities of Vietnam to fulfill GACP requirements and satisfies technical standards laid down in bidding documents or RFP.

7. Regarding a drug which is included in the approved drug supplier selection plan but no longer meets the principles and criteria for being included in the list of drugs procured through centralized procurement:

a) If the bidding documents or RFP has been issued, the centralized drug supplier selection shall continue to be carried out according to the approved drug supplier selection plan;

b) If the bidding documents or RFP is not yet issued, the centralized procurement unit shall:

- request competent authorities to consider permitting application of clause 5 Article 53 of the Law on Bidding; or

- notify the termination of the centralized procurement, and request health facilities/provincial governments to proactively organize the procurement of drugs.

8. If a drug which can be manufactured by at least 03 domestic manufacturers on production lines fulfilling EU-GMP requirements or EU-GMP-equivalent requirements, and meet technical requirements as announced by the Ministry of Health of Vietnam, and other quality, price and supply capacity requirements no longer meets principles and criteria as prescribed, the unit in charge of organizing the drug supplier selection shall consider taking one of the following actions:

a) If the bidding documents or RFP has been issued, the drug supplier selection shall continue to be carried out according to the approved drug supplier selection plan and the issued bidding documents or RFP; or

b) if the bidding documents or RFP is not yet issued, the purchase must not grant the incentives as prescribed in point b clause 1 Article 56 of the Law on Bidding.

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The Director of Drug Administration of Vietnam, the Director of the Traditional Medicine Administration of Vietnam, the Director of the Planning - Finance Department, Chief of the Ministry’s Office, the Ministry’s Chief Inspector, head of the national centralized procurement unit, heads of departments of and affiliated to the Ministry of Health of Vietnam, Directors of Provincial Departments of Health, pharmacy business establishments and other relevant authorities, organizations and individuals are responsible for the implementation of this Circular.

Difficulties that arise during the implementation should be reported to the Ministry of Health of Vietnam for consideration./.

 

 

PP. MINISTER
DEPUTY MINISTER




Le Duc Luan

 

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Circular No. 07/2024/TT-BYT dated May 17, 2024 on prescribing bidding for supply of drugs for public health facilities
Official number: 07/2024/TT-BYT Legislation Type: Circular
Organization: The Ministry of Health Signer: Le Duc Luan
Issued Date: 17/05/2024 Effective Date: Premium
Gazette dated: Updating Gazette number: Updating
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Circular No. 07/2024/TT-BYT dated May 17, 2024 on prescribing bidding for supply of drugs for public health facilities

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