Corporate Legal Services

Bidding Drug Supply to Public Hospitals

Public hospitals are a major drug sales channel, but companies cannot sell to them directly — they must compete through bidding under the law. The Bidding Law 22/2023/QH15 and its guidance set the framework of eligibility conditions, contractor selection methods and competition principles every drug company should grasp before entering the game. This article sketches the overall picture at framework level, helping companies shape strategy rather than getting lost in individual tender details.

1. Legal framework: Bidding Law 22/2023 and guidance

The Bidding Law 22/2023/QH15, effective 1 January 2024 and replacing Bidding Law 43/2013, is the parent statute governing contractor selection using state capital — including drug procurement at public healthcare facilities. Decree 24/2024/ND-CP of 27 February 2024 details contractor selection. For healthcare specifically, the Ministry of Health issued Circular 40/2025/TT-BYT on drug bidding at public healthcare facilities, effective 25 October 2025 — the newest sectoral instrument companies should consult before bidding. Note: guidance in this field is updated frequently; companies must verify the guidance in force when preparing bids rather than mechanically applying old documents.

2. Eligibility and contractor selection methods

At framework level, bidders must satisfy conditions on legal standing, financial capacity, supply experience, and the offered drugs must hold valid marketing authorizations. Bidding law provides several selection methods such as open bidding, competitive offering, direct appointment and price negotiation in special cases — the applicable method depends on the package’s nature, scale and healthcare sector rules. Besides hospital-level bidding, drugs are also procured through national centralized procurement or price negotiation for special lists; companies should track these lists to choose the right arena.

3. Common risks and prevention

Drug companies commonly stumble on three points: bid dossiers missing capacity evidence or with expired marketing authorizations; pricing that miscalculates logistics, cold-chain and exchange-rate costs, causing losses after winning; and violations of competition rules in bidding. Consequences go beyond losing the bid — bidders may be banned for a period or sanctioned under the law. The best prevention is a multi-layer internal bid review process, updating the legal document list before each bidding round, and never committing to prices beyond real supply capacity.

Conclusion

Bidding drugs into hospitals is a long game requiring companies to master the Bidding Law 22/2023 framework while tracking ever-changing healthcare guidance. The smart strategy is to build dossier capacity early and choose the right selection method and list, rather than chasing each tender reactively. When a compliance review of the bid dossier is needed, companies should consult legal counsel before the bid closing time.

Frequently asked questions

1. Can a drug company sell directly to a public hospital?
No. Drug procurement at public healthcare facilities using state capital must follow contractor selection under bidding law; direct sales bypassing bidding violate the law.

2. Do bid drugs need a marketing authorization?
Yes; at framework level, offered drugs must hold a valid marketing authorization at bidding time — a prerequisite legal condition for the product.

3. What contractor selection methods exist?
The framework provides open bidding, competitive offering, direct appointment, price negotiation and centralized procurement; the method depends on package nature and sector rules — check current regulations when bidding.

4. Can the price be adjusted after winning?
The general principle is to perform the signed contract as agreed; adjustments apply only when the law and bidding documents allow under strict conditions — do not assume adjustment will be granted.

5. How are bidding violations sanctioned?
Depending on severity: cancellation of the selection result, bidding bans for a period, administrative fines; serious fraud may face criminal liability.

This article has been quality-reviewed by the FLAW AI Legal Council.