What is drug price negotiation? Regulations on price negotiation in healthcare bidding.

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What is drug price negotiation?

Price negotiation in bidding can be applied in many different fields. However, the negotiation of prices for drugs, medical equipment, and laboratory supplies is one of the areas specifically regulated by law in Article 28 of the Bidding Law 2023. This is also a form often applied to items with specific characteristics, limited number of manufacturers, or directly related to healthcare needs, thus attracting the attention of many units and businesses.

So, what is drug price negotiation? Drug price negotiation is a method of selecting contractors applied in drug procurement, in which the competent authority will negotiate prices with suppliers to determine a suitable price before signing a procurement contract.

According to current regulations, this method is usually applied to original branded drugs, reference biological products, or drugs with only one or two manufacturers. Drug price negotiations aim to ensure the purchase of drugs at reasonable prices, contributing to improved budget efficiency and meeting healthcare needs.

The drug price negotiation process will be conducted by the bidding party, the investor, or the competent authority, negotiating with the contractor on issues related to the bid price, implementation costs, and certain commercial conditions before finalizing and signing the contract as prescribed.

When is drug price negotiation applied?

Previously, under the Bidding Law 2013, price negotiation was mainly applied to drug procurement packages with specific characteristics such as rare drugs, original branded drugs, drugs still under patent, or drugs with only one or two manufacturers.

However, according to the 2023 Bidding Law, the scope of application of price negotiation has been expanded to include medical equipment and laboratory supplies. Specifically, the price negotiation method is currently applied to the following cases:

• Procurement of original branded drugs and reference biological products;

• Procurement of drugs, medical equipment, and laboratory supplies where only one or two manufacturers exist.

At the same time, the Government assigns the Ministry of Health to decide on the application of the price negotiation method; to issue a list of drugs, medical equipment, and laboratory supplies subject to price negotiation, as well as to regulate the process and procedures for selecting contractors for these tenders.

Thus, price negotiation is a contractor selection method applied in specific cases related to the procurement of drugs, medical equipment, and laboratory supplies that are monopolistic or have a limited number of manufacturers. The application of this method aims to provide the procuring agency with a basis for price negotiation, ensuring efficient use of the budget and alignment with market realities. Simultaneously, the authority to decide on the application of price negotiation and to issue the specific list rests with the Minister of Health.

Regulations on Negotiation Methods in Bidding

Current legislation already has specific regulations on the cases of application and procedures for conducting negotiations in bidding. Below are some notable regulations regarding this method, specifically:

List of Drugs, Medical Equipment, and Laboratory Supplies Subject to Price Negotiation in Bidding

According to Article 2 of Circular 05/2024/TT-BYT, the list of drugs, medical equipment, and laboratory supplies subject to price negotiation in bidding is specifically regulated as follows:

“Article 2. List of Drugs, Medical Equipment, and Laboratory Supplies Subject to Price Negotiation
Attached to this Circular is the list of drugs, medical equipment, and laboratory supplies subject to price negotiation, including:

1. The list of drugs subject to price negotiation as stipulated in Appendix I attached to this Circular.

2. The list of medical equipment and laboratory supplies subject to price negotiation as stipulated in Appendix II attached to this Circular.”

Price Negotiation Plan for Drugs in Bidding According to Circular 05

The price negotiation plan according to Circular 05 is stipulated in Article 5 of Circular 05/2024/TT-BYT, specifically:

“Article 5. Price Negotiation Plan

1. The development of a price negotiation plan for drugs shall be based on one or more or all of the following information:
a) The number of marketing authorization certificates for Group 1 generic drugs as stipulated in the Circular on drug bidding at public health facilities issued by the Minister of Health (hereinafter referred to as Group 1 generic drugs) or other technical group generic drugs in cases where there are no Group 1 generic drugs;
b) The winning bid price for Group 1 generic drugs or other technical groups in cases where there are no Group 1 generic drugs;
c) The substitutability of the drug under price negotiation (if necessary);
d) The period of circulation in Vietnam;
e) Information on the value of the drug under price negotiation already used by the Insurance Vietnamese society provides (if any);

e) Value and planned quantity of the drug subject to price negotiation;

g) Reference price of the drug subject to price negotiation in ASEAN countries (if any). If there is no reference price in ASEAN, refer to other countries (if any);

h) Processing and technology transfer roadmap for original branded drugs and reference biological products announced by the Ministry of Health for processing and technology transfer in Vietnam;

i) Proposal documents of the contractor, proposal evaluation report and summary of information on the drug subject to price negotiation by the expert team;

k) Other relevant information (if any).

2. The development of a price negotiation plan for medical equipment and laboratory supplies is based on one or more or all of the following information:
a) Winning bid price of the medical equipment and laboratory supplies subject to price negotiation (if any);

b) Time of circulation in Vietnam;

c) Information on the value of the equipment Medical equipment and testing supplies subject to price negotiation, as provided by Vietnam Social Security (if any);

d) Planned value and quantity of medical equipment and testing supplies subject to price negotiation;

e) Reference prices of medical equipment and testing supplies subject to price negotiation in ASEAN countries (if any). If there are no reference prices in ASEAN, refer to other countries (if any);

f) Contractor's proposal, proposal evaluation report, and summary of information on medical equipment and testing supplies subject to price negotiation by the expert team;

g) Other relevant information (if any).

3. The price negotiation plan includes the following contents:
a) Expected time for conducting price negotiations;

b) Summary information of the drugs, medical equipment, and testing supplies subject to price negotiation;

c) Desired negotiation price is the price used for negotiation and is not a mandatory price to be achieved during the negotiation process. price negotiation, including one of the following two cases:

• The desired price level to be achieved in price negotiation;

• A price range encompassing multiple desired price levels to be achieved in price negotiation;

d) Other factors related to the price negotiation approach.”

Instructions for searching for price negotiation tenders on DauThau.info

If your company is interested in price negotiation tenders, please follow methods below:

In the Bid search, enter the keyword "price negotiation" in the Main keyword box, select the desired publication period, for example: "From May 1, 2026 - May 21, 2026", then click Search.

If you want to search for negotiated bids based on multiple criteria, click on Click for advanded search then enter the following information fields for the most accurate results:

• Place of implementation

• Bid security amount

• Tender value

• Fields

• …

To easily track and find suitable bid packages for price negotiation, businesses can refer to DauThau.info's VIP1 software package with outstanding features such as:

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• Helps save time on manual search

Register for the VIP1 package today to receive quick and accurate tender updates and not miss out on suitable opportunities for your business!

FAQ - Frequently Asked Questions Regarding Price Negotiation in Tendering

The following are some frequently asked questions related to price negotiation in tendering. Your company should refer to them to better understand this type of tendering, specifically:

1. What are the contents of a plan for organizing price negotiations for a pharmaceutical tender package?

According to Clause 1, Article 6 of Circular 05/2024/TT-BYT, the plan for organizing price negotiations for drug tenders includes the following contents:

“1. Based on the capacity to organize and implement price negotiations, the Price Negotiation Unit shall develop a plan for organizing price negotiations including at least the following contents:
a) Number of price negotiation rounds in the year;
b) List of drugs, medical equipment, and laboratory supplies to be subject to price negotiation in each round;
c) Expected start time of price negotiation and expected end time, and announcement of price negotiation results.
Specifically for drugs, medical equipment, and laboratory supplies on the List subject to price negotiation and for which price negotiation results have been announced, the Price Negotiation Unit is responsible for developing a plan, determining procurement needs, and organizing the selection of contractors through price negotiation for the next period or for at least 6 months before the expiration date.” 1. The signed framework agreement must include written notification to the units and localities organizing the contractor selection process as stipulated in Clause 2 of this Article.

2. In what cases must the price negotiation unit notify the plan and implementation status? 

Based on Clause 2, Article 6 of Circular 05/2024/TT-BYT, the price negotiation unit is required to notify the plan and implementation status in the following cases:

“2. The price negotiation unit is responsible for notifying in writing the price negotiation plan and the implementation status of price negotiations so that units and localities can proactively organize the selection of contractors to supply medicines, medical equipment, and laboratory supplies subject to price negotiation as prescribed in Clause 1, Article 20 of this Circular in the following cases:
a) Before March 15th of each year, notify the plan for organizing price negotiations as prescribed in Clause 1 of this Article;
b) When medicines, medical equipment, and laboratory supplies on the List subject to price negotiation do not meet the principles and criteria prescribed in Clause 1, Article 28 of the Law on Bidding and the provisions of Article 1 of this Circular;
c) When the negotiation process cannot be completed on schedule.” price;

d) When regulation is not possible as stipulated in Article 17 of this Circular in one of the following cases:
- The medical facility has used up the allocated quantity of medicines, medical equipment, and laboratory supplies in the framework agreement or has a need for use that exceeds the regulation capacity as stipulated in Article 17 of this Circular;

- The medical facility is established after the completion of the aggregation of the need to purchase medicines, medical equipment, and laboratory supplies and exceeds the regulation capacity as stipulated in Article 17 of this Circular.

e) When price negotiations fail;

f) The contractor supplying medicines, medical equipment, and laboratory supplies is no longer able to fulfill the framework agreement or signed contract.”

3. What are the responsibilities of the price negotiation unit?

According to Clause 2, Article 3 of Circular 05/2024/TT-BYT, the price negotiation unit has the following responsibilities:

“a) Develop, approve, and announce the plan for organizing price negotiations;
b) Develop a plan for selecting contractors to supply medicines, medical equipment, and laboratory supplies through price negotiation;
c) Develop, appraise, and approve the request for proposals;
d) Organize the evaluation of proposals;
e) Develop and approve price negotiation options;
f) Appraise, approve, and publicly announce the results of price negotiations;
g) Sign framework agreements or contracts with the winning contractors;
h) Participate in monitoring and regulating the supply and use of medicines, medical equipment, and laboratory supplies for which contractors have been selected through price negotiation;
i) Participate in all steps of the price negotiation process and compile and provide relevant information during the price negotiation process;
k) Implement Other tasks assigned by the Minister of Health.”

In case you need clarification on any issues arising during the bidding process, your company can access the Bidding Support Center of the Bidding Ecosystem to receive answers from AI Bidding Consultants (see user guide HERE) or Bidding Experts.

Conclusion

Price negotiation is a specific form of bidding, applied to certain tenders with unique characteristics to ensure the selection of an appropriate price and improve the efficiency of capital utilization. Understanding the regulations regarding price negotiation in bidding will help organizations and businesses be more proactive in the process of selecting contractors and conducting procurement in accordance with the law.

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