Indian firms up pharma investments
In anticipation of future growth potential, Indian businesses are venturing further into investments in pharmaceutical production in Vietnam, with more fresh projects in the pipeline.
According to the Indian Business Chamber in Vietnam (Incham), Indian companies have extensive expertise in generic drug production. An increasing number of leading pharmaceutical firms from the subcontinent are now looking to up their investments in the country.
“Some large companies, which are among the top 10 in India, are expected to come to Vietnam in 2019 to invest in production bases in the lucrative local pharmaceutical industry. They are taking the necessary steps for the entry,” a senior official of Incham told VIR. “In addition, some Indian drug makers now have their production bases in Malaysia and Thailand, and Vietnam will be the next destination. Production in Vietnam will enable Indian businesses to export their products to the ASEAN market.”
Pharmaceuticals have been a focus in recent trips made by Indian firms in search of investment and business opportunities in Vietnam, along with agriculture, IT, and biological technology.
Indian firms up pharma investments
The new expected investment is likely to enable Indian firms to benefit from the incentives offered by the Vietnamese government’s plan to privilege domestically produced pharmaceuticals in order to increase the percentage of domestically produced pharmaceuticals among drugs sold in Vietnam from 50 per cent at the end of 2015 to 80 per cent by 2020.
Vietnam now offers some prioritised polices for local drug production, which are specified in the Pharmacy Law and circulars 9, 10, and 11 on pharmaceuticals bidding. High-tech drug production projects are also connected with tax incentives.
What is more, such facilities are to benefit from the Vietnamese government’s policy to give priority to generic drugs, which is considered a speciality of Indian drug markers.
The move among Indian drug makers proves how attractive the Vietnamese pharmaceutical industry is and how highly lucrative the local investment climate is. Vietnam’s pharmaceutical market is on track to grow on a steep incline. The 2017 turnover of the domestic market was estimated at $5.2 billion according to data from Business Monitor International, up approximately 10 per cent on-year. The industry is expected to continue its double-digit growth over the next five years.
At present, Indian investors focus on energy, infrastructure, and mineral projects in the country. Tata Group, Adani Green Energy Ltd., and Suzlon Energy Ltd. are big Indian players on Vietnam’s energy market. They are planning to invest in plants in various Vietnamese regions, while some other firms are interested in marble mining and mineral resources.
According to Incham, despite several issues related to policy and the bankability of projects in the renewable sector, the first green field solar project which is backed by Indian investors has completed major approval steps, resolved financing issues, and on the verge of beginning construction in Vietnam.
India’s total pledged capital in Vietnam hit around $128.14 million in the first seven months of 2018, placing the country at the 17th position among countries and territories with investments in Vietnam.
To promote Indian investment in Vietnam, Incham is now becoming more active. Last week, it worked with the Vietnam Chamber of Commerce and Industry on strengthening co-operation and hosting joint activities in Vietnam and India, including “Summit 2018”, which will be organised in Surat, as well as the Vietnam-India Business Forum.
Further tariff cuts under the ASEAN-India Trade in Goods Agreement–part of the ASEAN-India Free Trade Agreement – are expected to be a key driver of a rise in Indian investment into Vietnam in the near future.
- FDI in Vietnam – Where is the Investment Going? (12/08/2019)
- HCM City solicits investment in infrastructure (30/07/2019)
- Vietnam - Japan Business Matching Symposium 2019 (29/07/2019)
- RoK’s rural development group to invest in smart farming in Vietnam (15/07/2019)
- FDI reaches record level in four months (08/07/2019)
- Powering 220 kV Southern Sai Gon - Urban District 8 transmission line (27/06/2019)
- EVFTA Press Release - Official Announcement from the EU (26/06/2019)
- PM calls on Korean investors to expand operations in Vietnam (12/11/2018)
- E-commerce golden pass for logistics (12/11/2018)
- Hoa Phu Industrial Park - The destination of success (12/11/2018)
- Long Thanh airport’s feasibility study approved (12/11/2018)
- Renewable energy projects spur foreign investment surge (02/11/2018)
- New innovation centre to provide grounds for Vietnam 4.0 (02/11/2018)
- National Assembly set to ratify historic trade deal (02/11/2018)
- Overseas financiers outline obstacles (02/11/2018)
- Moody’s upgrades ratings on Vietnamese banks (01/11/2018)
- Foreign investors expand networks in Vietnam (01/11/2018)
- Altus Capital funded to invest in distressed Southeast Asian companies (01/11/2018)
- More FDI to reach southern region (01/11/2018)
- Foreign fashion giants set footprint in Vietnam through M&A (31/10/2018)
- Key infrastructure projects calling for investment in HCMC (08/07/2019)
- Bac Ninh licenses 116 FDI projects in seven months (22/08/2018)
- Binh Phuoc licenses 24 projects worth $1 billion (22/08/2018)
- Hue targets $56mil in investment this year (15/08/2018)
- Hanoi seeks approval for Vingroup’s $300 million IT park (31/07/2018)
- List of Project Calling For Investment in Lam Dong Province in 2018 (31/07/2018)
- Kien Giang calls for investment in 12 resort projects (31/07/2018)
- Decree amendments open paid TV firms to foreign investment (30/07/2018)
- Vietnam: Opportunities in the Waste-to-Energy Sector (24/07/2018)
- Can Tho City seeks investment for 54 projects worth $5.4 billion (20/07/2018)
- Hoa Lac High-tech Park aims for $1 billion investment in 2018 (19/07/2018)
- Large-scale undersea tunnel to be constructed next year (19/07/2018)
- THU THUA INDUSTRIAL ZONE (15/01/2020)
- Map of industrial parks in Vietnam (23/07/2019)
- 493 Projects Invested in Nghi Son Economic Zone and Industrial Zones (09/02/2018)
- Thai Binh Strives to Attract Investment Capital of VND 5000 billion in Industrial Parks and Economic Zones (07/02/2018)
- Vinh Phuc Adds 4 New FDI Projects in Industrial Zones (07/02/2018)
- Dung Quat EZ and Quang Ngai IPs Attracted 258 Projects with a Total Investment Capital of More Than US$ 11 Billion (30/01/2018)
- Solutions to attract Investment Capital into Industrial Parks in Bac Giang Province (19/01/2018)
- Nghi Son Economic Zone and Industrial Zones Received 66 new Investment Projects (08/01/2018)