Vietnam should accelerate process to be a part of global vaccine supply chain

Tiếng Việt

Vietnam should accelerate process to be a part of global vaccine supply chain

Vietnam should take quick measures and speed up the manufacturing of COVID-19 vaccines locally, experts from RMIT Vietnam said.

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RMIT Senior Lecturer and Research Cluster Lead Dr Pham Cong Hiep said that joining the global vaccine supply chain will help Vietnam to enhance its ability in countering current and future pandemics and to achieve a number of its strategic goals.

Enhance Vietnam’s ability in countering current and future pandemics

RMIT Senior Lecturer and Research Cluster Lead Dr Pham Cong Hiep said that while Nanogen, one of the two local firms participating in COVID-19 vaccine research and development, has reached stage 3 of clinical trial with its Nano Covax COVID-19 vaccine, it has not gotten to the final approval stage.

“Once fully functional the company can be capable of manufacturing 20 to 30 million doses, and up to 100 million doses each year to satisfy both domestic and export demand,” Dr Hiep said.

“Though it seems Nanogen can satisfy Vietnam’s vaccine domestic demand, it has not reached final approval stage and large-scale usage while the worsening situation of COVID-19 globally would require a more proactive approach to ensuring sufficient supplies of the vaccines for the near future.”

Dr Hiep said that it is clear the government is taking decisive action to establish Vietnam as a world vaccine supply source through technology transfer agreement and domestic research and development.

“A number of vaccine transfer-and-produce initiatives have been endorsed by the Ministry of Health (Decision 2301/QD-BYT), to beef up vaccine production from Vietnam to around 200 million doses by the first half of 2022,” he said.

“In addition to that, Vietnam has successfully secured technology transfer from Japan and Russia.

“It is expected that the tech transfer of the Sputnik vaccine from Russia will be completed by the end of 2021.”

Joining the global vaccine supply chain, according to Dr Hiep, will help Vietnam to achieve a number of its strategic goals.

“First, Vietnam can take advantage of its high-quality infrastructure in industry zones, and experienced workers in many high-tech firms to participate deeper in the value chain of vaccine production,” Dr Hiep explained.

“Second, being able to master complex vaccine production know-how and establish capability to produce large-volume world-class vaccines can ensure Vietnam to reach its target of COVID-19 vaccine coverage of at least 70% of the population by Quarter 2/2022.

“Third, it can contribute to reducing global shortages and making vaccines more affordable to less developed countries like Vietnam.

“Importantly, participating in the vaccine supply chain can enhance the country’s ability to counter future pandemics as COVID-19 may not be the last.”

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RMIT School of Business and Management lecturer Dr Majo George analysed the challenges local companies might face when acquiring vaccine tech transfer and starting to implement production in Vietnam.

Identify challenges

RMIT School of Business and Management lecturer Dr Majo George analysed the challenges local companies might face when acquiring vaccine tech transfer and starting to implement production in Vietnam.

Dr George said the first challenge is to find a local manufacturer with adequate skilled capability and capacity to produce COVID-19 vaccines.

“Manufacturing COVID-19 vaccines require highly technical know-how, rare raw materials and equipment, which are lacking in many developing countries,” he said.

“The complexity in the supply chain might create a huddle for countries like Vietnam in accessing the technology transfer.

“A recent study indicated that the Pfizer vaccine supply chain requires 280 components from 86 suppliers in 19 countries, along with specialised equipment and trained personnel.”

He emphasised that although Vietnam may take part only in the fill-and-finish stage of vaccine production, investment in advanced technology, capital and human resource training becomes essential for the national vaccine production plan.

Dr George pointed out another challenge in accessing to reliable supplies in a short time when current outbreak of the new Delta variant of the COVID-19 has adversely affected existing global supply chains.

“The raw materials needed can vary from basic ones like buffers, resins, sodium chloride, to consumables such as single use containers, tubing, sterile filters, vials, stoppers to mention a few,” he said.

“Delays of some of these are forecasted to be 12 to 15 months.

“For some of the key materials like vials, syringes, stoppers, seals, there are only a limited suppliers and it hinders the supplier base growth.

“To worsen the situation, some developed countries have taken excess ordering for safety stock which leads to further shortage and inefficiencies across the industry.”

Dr George said the international travel restrictions and quarantine requirements are causing delays for vendors to provide experts on site for installation of the new equipment and to provide training for the local staff.

“It is expected that there will be long delays to commission new facilities.”

He also commented on the limited resources and supply sources which mainly from only five major pharmaceutical firms and the continuing debate over intellectual property rights have not enabled vaccine tech transfer as expected.

“Large pharmaceutical companies have been unwilling to join it, preferring to pursue lucrative bilateral deals with wealthy countries instead.”

Story: Ha Hoang

Business and management

Media Release

17 August 2021