Pharmaceutical companies in many localities around Vietnam are facing a host of difficulties, particularly a lack of capital, a recent webinar heard.

“Banks are not really interested in lending to pharmaceutical businesses in particular and the agricultural field in general because the industry is very risky,” said Dr. Vu Van Thoai, Head of the Institute of Sandalwood and Rare Floral (ISRF)’s Science Council.

“Of ten projects, perhaps one or two of the best can earn long-term, stable profits,” he told a seminar discussing the potential of Vietnam’s medicinal herbs held by VnEconomy / Vietnam Economic Times.

“Therefore, to gain preferential loans from banks, firms must have a license granted by local authorities, have technical norms approved, and go through various management levels, which results in many failing to complete the necessary procedures.”

General Director of TH Herbals, Trinh Hien Trung said precious herbal plants must be grown in remote and mountainous areas where substantial investment is needed due to hilly and mountainous terrain and limited electricity and traffic infrastructure.

“Incentives are quite general,” he went on. “When asked about preferences, local authorities often give general responses, making it difficult to implement any policies,” said Mr. Trung.