It had been expected that those who were not compliant with the World Health Organization's (WHO) GMP standards would be forced to cease operations but the MoH has now softened its stance.
The body's new position is that each company's circumstances will be assessed on a case by case basis, with provisory regulations brought in. Companies now have until 2010 to comply with GMP.
Vietnam's MoH believes that making the nations facilities GMP compliant is essential if they are to evolve into entities capable of competing with foreign competitors.
This is intended to ensure that Vietnam's small but growing local pharmaceutical production industry, which grew by 18 per cent in 2007 to $560m, is equipped to combat international rivals.
However, the MoH has now adjusted its timeframe for GMP compliance following a petition from Vietnam's pharmaceutical manufacturers, which explained the difficulties they faced in adopting and maintaining the standards.
Companies felt more time was needed to arrange capital, modify practices and expand production to bring them into line with the GMP criteria.