“Indian Pharma Giant Proposes a Drug Manufacturing Hub in Central Vietnam, Anticipating $4-5 Billion in Investments Over the Next Decade”

On the morning of July 31, as part of his state visit to India, Prime Minister Pham Minh Chinh met with Mr. P. Ramesh Babu, Chairman and CEO of SMS Pharmaceuticals, and Mr. Narendra Reddy, CEO of Sri Avantika.

SMS Pharmaceuticals is one of India’s largest pharmaceutical manufacturers, established in 1990. The corporation currently has four production facilities and two research centers, employing 1,000 people. Meanwhile, Sri Avantika, founded in 1992, operates in multiple sectors, including mining, pharmaceuticals, infrastructure, and trade.

At the meeting, the Prime Minister emphasized that healthcare and pharmaceuticals are sectors of great interest to Vietnam, with supportive policies and incentives in place. He highlighted the significant potential for collaboration between the two countries in the pharmaceutical sector, noting that Indian medicines currently hold approximately 33% of the market share in Vietnam.

Additionally, the Prime Minister pointed out that Vietnam is a large market with a population of 100 million, located in a dynamic economic region, and boasts abundant pharmaceutical raw materials. Vietnam has also signed and negotiated numerous free trade agreements, creating favorable opportunities for Indian pharmaceutical companies.

The leaders of SMS Pharmaceuticals shared a similar sentiment, describing Vietnam as a vibrant and rapidly developing market with an increasingly favorable investment and business environment, making it a top investment destination. They revealed that their companies have established a joint venture with a Vietnamese partner to propose the development of a high-tech pharmaceutical industrial park in the Nghi Son Economic Zone (Thanh Hoa) with an investment of approximately $200 million in phase 1.

This project aims to produce goods targeted at the US and European markets and is expected to attract secondary investors, generate numerous jobs, and enhance the capabilities of Vietnamese businesses. According to the Indian corporation, around 50 secondary investors have already expressed interest in the project.

In response to the Indian companies’ cooperation proposals, the Prime Minister requested that the corporations continue discussions with the Ministry of Health and other relevant ministries, sectors, and localities to implement the necessary procedures. He also encouraged them to actively contribute to the improvement of Vietnam’s institutional and policy framework and engage in technology transfer and pharmaceutical human resource development.

The Prime Minister assured the companies that the Vietnamese government is committed to supporting and creating a conducive legal corridor for the investment, production, and business activities of domestic and foreign businesses, including those from India.

On the same day, Prime Minister Pham Minh Chinh also met with the leadership of the BDR Group. Established in 2002, BDR is India’s largest manufacturer of cancer treatment products, holding 80% of the domestic market share. The group currently owns nine factories in India and one in Algeria.

BDR established a representative office in Vietnam in 2022 and currently supplies pharmaceutical raw materials for cancer treatment drug production to several factories in the country. They are also in the process of obtaining distribution licenses for drugs treating certain types of cancer.

During the meeting, the group’s leadership expressed their desire to become a long-term strategic investor in the pharmaceutical sector in Vietnam. They are exploring locations to invest in the production of important and new-generation drugs and to transfer technology, especially in cancer and AIDS treatment. Their goal is to supply the domestic market and export their products.