Foreign drugmakers ramp up investments in Vietnam

By Tuong Thuy
Tue, July 19, 2022 | 12:37 pm GMT+7
Logo of Sanofi, one of the world's leading pharma companies. Photo courtesy of the firm.

Logo of Sanofi, one of the world's leading pharma companies. Photo courtesy of the firm.

Multinationals are scaling up investments in the growing pharmaceutical industry in Vietnam, which boasts a population of 100 million and a medicine market valued at $6.2-6.4 billion a year.

Robust industry development has been driven by Vietnamese people's increasing care about their health and rising disposable income, with the expected to gain in strength.

European footprint

France-based giant Sanofi’s Vietnamese unit has just inaugurated a modern warehouse meeting Good Storage Practice standards at Long Hau Industrial Park in Long An province, which borders Ho Chi Minh City. The facility is about one hour’s drive from the $75-million plant in HCMC’s Saigon Hi-Tech Park the French heavyweight built in 2013 to boost supplies across Southeast Asia.

The new warehouse is expected to bolster Sanofi’s supply chain in Vietnam and ensure smooth delivery of its drugs, vaccines, and consumer healthcare products across the burgeoning market, Sanofi Vietnam said at the warehouse opening ceremony on July 13. It was built using environment-friendly materials, helping reduce greenhouse effects and heat insulation.

“We set very strict standards for storage, transport and handling of goods to ensure optimal product quality,” said Emin Turan, country lead of Sanofi Vietnam and Cambodia.

To optimize space utilization and economic efficiency, it is equipped with two narrow-aisle trucks imported from Germany able to transport over 200 pallets of products daily.

Sanofi operates three manufacturing facilities in Vietnam, all located in HCMC. While kicking off construction of the third in 2013, Sanofi’s global operations president Hanspeter Spek said Vietnam was his group’s second-most important market in Asia after China.

British global healthcare company GSK launched in May its new entity in the market, GSK Pharma Vietnam Co. Ltd., with $200 million in investment capital, as the next development replacing the European giant’s Vietnam representative office. GSK said the office had contributed to preventing and treating diseases in Vietnam with its vaccines and drugs over three decades.

The new firm aims to deliver positive impacts on healthcare quality for more than one-third of the Vietnamese population over the next three years. GSK said in a release that the new subsidiary would continue operating and growing sustainably and responsibly in the country to become “one of the most innovative, best performing, and trusted healthcare companies.”

“We aim to protect six out of 10 newborn babies from life-threatening vaccine-preventable diseases and hundreds of thousands of adults and groups with underlying conditions,” said medical doctor Pham My Lien, GSK Pharma Vietnam president. She added her company would also provide treatments for millions of asthma and chronic obstructive pulmonary disease patients.

GSK Pharma Vietnam president Pham Thi My Lien gives a speech while launching the firm in Ho Chi Minh City on May 11, 2022. Photo courtesy of the company.

GSK Pharma Vietnam president Pham Thi My Lien gives a speech while launching the firm in Ho Chi Minh City on May 11, 2022. Photo courtesy of the company.

Marking its debut, GSK Pharma Vietnam signed cooperation deals with Vietnam Medicine Association, Phytopharma JSC, and Vietnam Vaccine JSC (VNVC) to provide continuing medical education to enhance the quality of treatment and clinical practice for healthcare professionals across the country. The parties will also strengthen knowledge exchange, expand immunization coverage to children and adults in the country, and promote disease awareness among the general public.

Indian investors

Vietnam's pharmaceutical industry was estimated to grow 15% in 2021, according to Saigon Securities Inc. analysts. Like other foreign companies, Indian drugmakers are seeking inroads into the fast expansion.

Two Indian companies, Sri Avantika Contractor and SMS Pharmaceuticals, signed a cooperation agreement with Vietnamese industrial property developer Dai An JSC this February to build an Indian-invested pharmaceutical park in Hai Duong province near Hanoi, with total investment capital likely to reach $10 billion.

The project will cover more than 900 hectares in Binh Giang and Thanh Mien districts. It will be implemented in two phases of investment, according to local media.

Addressing the signing ceremony, Hai Duong’s Party chief Pham Xuan Thang pledged to provide the best support toward the project, the largest of its kind in the province.

In the central province of Thanh Hoa, a partnership between the three companies is set to build another pharmaceutical park worth around $500 million.

The project is expected to deliver an export revenue of $3 billion annually, creating 50,000 direct and 200,000 indirect jobs.

At an India-Vietnam pharmaceuticals and healthcare conference held in HCMC on July 5, Le Ngoc Danh, deputy head of HCMC Department of Health's pharmacy division, said the Vietnamese pharmaceutical market was currently valued at $6.2-6.4 billion.

Tran Ngoc Liem, head of the Vietnam Chamber of Commerce and Industry’s HCMC branch, said India is the third biggest pharmaceuticals supplier to Vietnam. "Pharmaceutical and healthcare partnerships, among joint operations in many other fields where the two countries hold advantages, would help both reach their 2022 bilateral trade target of $15 billion," he noted.

Around 300 Indian drug companies already have representative offices in Vietnam, including large firms like Sun Pharma, Natco, and Mylan, but there is not a joint venture between the two nations’ companies, Liem added.

At the event, Pranay Verma, India’s ambassador to Hanoi, said cooperation in the pharmaceutical sector was a significant factor in the two countries’ economic ties. He encouraged Indian companies to explore partnerships and investments in Vietnam.

Comments (0)
  • Read More
VSIP starts work on industrial park project in northern Vietnam province Thai Binh

VSIP starts work on industrial park project in northern Vietnam province Thai Binh

Construction of the Vietnam-Singapore Industrial Park (VSIP) Thai Binh commenced on Wednesday in northern Vietnam, with the witness of Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong.

Industrial real estate - Wed, March 26, 2025 | 10:41 pm GMT+7

Vingroup starts building mega urban project in Vietnam's Mekong Delta

Vingroup starts building mega urban project in Vietnam's Mekong Delta

Vietnam’s leading private conglomerate Vingroup on Wednesday embarked on construction of the VND28 trillion ($1.1 billion) Vinhomes Green City, the first mixed-use urban development in its ecosystem in the Mekong Delta province of Long An.

Real Estate - Wed, March 26, 2025 | 10:11 pm GMT+7

Indonesia, China cooperate in digital technology

Indonesia, China cooperate in digital technology

Indonesia and China are expanding cooperation in the field of AI to promote digital transformation, especially in the fields of agriculture and smart cities.

Southeast Asia - Wed, March 26, 2025 | 10:01 pm GMT+7

Indonesia decides to join BRICS New Development Bank

Indonesia decides to join BRICS New Development Bank

Indonesian President Prabowo Subianto has announced the Government's decision to become a member of the New Development Bank (NDB), a multilateral development bank established by the five founding member states of the BRICS group.

Southeast Asia - Wed, March 26, 2025 | 9:57 pm GMT+7

Major Vietnamese broker SHS to double charter capital

Major Vietnamese broker SHS to double charter capital

Saigon-Hanoi Securities Corporation (SHS) plans to issue 894 million shares to increase its charter capital from VND8.13 trillion to VND17.07 trillion ($667.6 million), making it one of the top three securities firms in term of charter capital.

Companies - Wed, March 26, 2025 | 8:30 pm GMT+7

Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Vietnam has allowed the U.S.'s SpaceX to pilot Starlink low-orbit satellite internet service in the country on a pilot basis until January 1, 2031.

Industries - Wed, March 26, 2025 | 5:18 pm GMT+7

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Denmark's Lego will officially open its factory in VSIP III Industrial Park in Vietnam's southern province of Binh Duong on April 9.

Industries - Wed, March 26, 2025 | 4:18 pm GMT+7

Top Singaporean firms earn high incomes in Vietnam

Top Singaporean firms earn high incomes in Vietnam

Singapore is the second-biggest foreign investor in Vietnam, with over $84 billion in registered investment capital as of end-January and many prominent investors raking in high incomes.

Companies - Wed, March 26, 2025 | 3:45 pm GMT+7

Vietnam, Singapore ink significant deals in Hanoi

Vietnam, Singapore ink significant deals in Hanoi

Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong on Wednesday witnessed the signing of many cooperation deals between agencies and enterprises of the two countries.

Economy - Wed, March 26, 2025 | 2:51 pm GMT+7

Vietnam's major policies are reshaping economic development

Vietnam's major policies are reshaping economic development

Major policies are reshaping Vietnam's approach to economic development, which focuses on science, technology, and private enterprises, said a leader at the Vietnam Chamber of Commerce and Industry (VCCI).

Economy - Wed, March 26, 2025 | 12:11 pm GMT+7

PM okays over $10 bln urban area project in central Vietnam

PM okays over $10 bln urban area project in central Vietnam

The over VND260.3 trillion ($10.16 billion) Cam Lam New Urban Area project in the south-central province of Khanh Hoa has received in-principle approval from Prime Minister Pham Minh Chinh.

Real Estate - Wed, March 26, 2025 | 8:58 am GMT+7

S Korea's KIM Fund raises stake in Vietnam's marine transportation firm VIPCO

S Korea's KIM Fund raises stake in Vietnam's marine transportation firm VIPCO

South Korea’s KIM Fund has increased its stake in Hai Phong city-based Vietnam Petroleum Transport JSC (VIPCO, HoSE: VIP) to 2.73%, making it the latter’s second-largest shareholder.

Companies - Wed, March 26, 2025 | 8:30 am GMT+7

Vietnam, Singapore seek cooperation chances in semiconductor industry

Vietnam, Singapore seek cooperation chances in semiconductor industry

The Vietnam Trade Office in Singapore, in collaboration with the Singapore Semiconductor Industry Association (SSIA), organized a hybrid seminar on Monday to introduce Vietnam's potential, advantages, and development strategies for the semiconductor industry.

Southeast Asia - Tue, March 25, 2025 | 10:55 pm GMT+7

OV intellectuals in UK suggest blueprint for Vietnam’s int’l financial hub ambition

OV intellectuals in UK suggest blueprint for Vietnam’s int’l financial hub ambition

Vietnam can rise as a major international financial centre, both regionally and globally, with a strategic vision that highlights transparency, a skilled workforce, modern infrastructure, robust financial markets, and strong international branding, the Vietnam Intellectual Society in the UK and Ireland (VIS) told visiting Vietnamese Permanent Deputy Prime Minister Nguyen Hoa Binh in a recent meeting.

Southeast Asia - Tue, March 25, 2025 | 10:55 pm GMT+7

Vietnam Deputy PM discusses financial center development with ECB

Vietnam Deputy PM discusses financial center development with ECB

Vietnam's Standing Deputy Prime Minister Nguyen Hoa Binh on Monday met with representatives of the European Central Bank (ECB) to discuss plans for the establishment of financial centers in Vietnam, as part of his working visit to Germany – the final stop in his European tour.

Southeast Asia - Tue, March 25, 2025 | 10:52 pm GMT+7

Indonesia keeps commitment on energy transition

Indonesia keeps commitment on energy transition

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday affirmed that the U.S. decision to pull out of the Just Energy Transition Partnership (JETP) will not impact the other partners' commitment to it.

Southeast Asia - Tue, March 25, 2025 | 10:35 pm GMT+7