India seeks to pour $500-mln into Vietnam pharmaceutical hub
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Large pharmaceutical enterprises in India have expressed their hope to establish a pharmaceutical industrial park in Vietnam, with an initial investment of about $500 million.
The idea of setting up the pharmaceutical industrial park was launched during recent trade and investment promotion sessions for the pharmaceutical industry organized by the Vietnamese Embassy in India, according to the local Vietnam Trade Office.
Vietnamese Ambassador to India Pham Sanh Chau said construction of the pharmaceutical industrial park would open an opportunity to welcome large pharmaceutical giants for long-term investment, helping Vietnam reduce dependence on traditional pharmaceutical supplies and diversify production chains.
It is estimated the industrial park would create jobs for 50,000 direct and 200,000 indirect workers, earning export revenue of about $5 billion per year.
Leaders of localities in Da Nang and Thua Thien-Hue in central Vietnam, Long An in southern Vietnam, and Hai Duong, Bac Ninh, and Thai Nguyen in the north have discussed land rent, geographical location, transport infrastructure and investment incentive mechanisms with Indian investors.
Ramesh Babu, chairman of India-based pharmaceutical manufacturing company SMS Pharmaceutical Group, which plans to invest in the pharmaceutical industrial park in Vietnam, said if successful, it would turn the country into a leading pharmaceutical research, development and production base in Southeast Asia and the world.
Analysts at SSI Securities estimated Vietnam’s pharmaceutical industry to grow by 15 percent in 2021 mainly due to a rapidly aging population and rising incomes.
Questions & Answers
Q.Which regions in Vietnam are being considered for the pharmaceutical industrial park?
Which regions in Vietnam are being considered for the pharmaceutical industrial park?
Local leaders in Da Nang and Thua Thien-Hue in central Vietnam, Long An in the south, and Hai Duong, Bac Ninh, and Thai Nguyen in the north have discussed potential locations with Indian investors.
Q.What benefits does Vietnam expect from establishing this pharmaceutical industrial park?
What benefits does Vietnam expect from establishing this pharmaceutical industrial park?
Vietnam anticipates welcoming large pharmaceutical companies, reducing reliance on traditional drug supplies, and diversifying production. The project is also expected to create many jobs and generate significant export revenue.
Q.What is the estimated economic impact of this pharmaceutical industrial park?
What is the estimated economic impact of this pharmaceutical industrial park?
The park is projected to create 50,000 direct jobs and 200,000 indirect jobs. It is also estimated to generate approximately $5 billion in export revenue annually.
Q.What is the primary reason for the expected growth in Vietnam's pharmaceutical industry?
What is the primary reason for the expected growth in Vietnam's pharmaceutical industry?
Analysts at SSI Securities attribute the anticipated 15 percent growth in Vietnam’s pharmaceutical industry primarily to the country's rapidly ageing population and increasing average incomes.
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