Indian Pharma Giants Set To Invest $200 Million In Vietnam Pharma Park

Indian pharmaceutical leaders SMS Pharmaceuticals and Sri Avantika Contractors have announced plans to invest $200 million in establishing a cutting-edge pharmaceutical park in Vietnam, with the potential to draw in $4-5 billion in additional investments, company executives revealed on Wednesday. The proposal for the park was presented by Ramesh Babu, chairman and managing director of SMS Pharmaceuticals, alongside Narendra Reddy, managing director of Sri Avantika Contractors, during a meeting with Vietnamese Prime Minister Pham Minh Chinh as part of his three-day official visit to India.

The two companies, along with their Vietnamese partner, have formed a joint venture to facilitate the upcoming investment. Located in the Nghi Son Economic Zone in Thanh Hoa province, the facility is expected to draw in $4-5 billion over the next ten years, targeting exports to the U.S. and European markets, according to the executives. Babu noted that around 50 investors have already shown interest in the project, highlighting that Vietnam’s attractive investment landscape and vibrant economy are major factors driving this interest.

On Wednesday, Dharmesh Shah, chairman and founder of BDR Group, informed Prime Minister Chinh of the company’s plans to invest in and manufacture pharmaceuticals in Vietnam. As the leading manufacturer of cancer medications in India, holding an impressive 80% market share, BDR currently supplies raw materials to various pharmaceutical factories in Vietnam and is preparing to launch cancer medication distribution within the country.

BDR aims to establish itself as a strategic and long-term investor in Vietnam, actively exploring potential investment areas while also focusing on technology transfers, Shah stated. In response, Prime Minister Chinh welcomed the initiatives from Indian companies, expressing that Vietnam is committed to encouraging, facilitating, and providing incentives for pharmaceutical investments. He noted that Indian products now represent approximately one-third of Vietnam's medicine market.

Chinh called on the Ministry of Health and local authorities to collaborate with Indian firms in executing these projects and encouraged Indian companies to offer insights on Vietnam’s ongoing efforts to update its legal framework. He also highlighted Vietnam’s advantages, such as its population of 100 million, participation in various free trade agreements, and ample resources for medicine production.