Indian Pharmaceutical Groups Pledge US$4-5 Billion Investment in Viet Nam

Prime Minister Pham Minh Chinh separately received leaders of SMS Pharmaceuticals Ltd. and Sri Avantika Contractors in New Delhi on Wednesday morning.

Prime Minister Pham Minh Chinh (R) hosts a reception for Ramesh Babu Potluri, Chairman/managing director at SMS Pharmaceuticals Ltd. Delhi, July 31, 2024 - Photo: VGP/Nhat Bac

Both SMS Pharmaceuticals Ltd. and Sri Avantika Contractors have entered into a partnership with a Vietnamese firm to develop a pharmaceutical park in Thanh Hoa province.

The project will have an initial investment of between US$700 million – US$1 billion in the first phase. It will be added with US$4-5 billion in the next phases over the next decade, targeting American and EU markets.

Ramesh Babu Potluri, Chairman/managing director at SMS Pharmaceuticals Ltd., welcomed Viet Nam’s conducive investment environment and proposed that the government consider approving the project.

Prime Minister Pham hailed the group’s investment plan and said Viet Nam wants to cooperate with foreign partners to develop the pharmaceutical industry to meet domestic demand, reduce imports and also export products to regional and world markets.

Viet Nam, said the Prime Minister, owns abundant sources of raw materials for pharmaceutical manufacturing, but the industry is yet to bring into full play its strength, with 33 percent of the products imported from India alone.

The country has offered special investment incentives for projects with large capital scale, quick disbursement and using high technology, he added.

The Vietnamese Government pledges to create a favorable legal corridor for foreign firms, including those from India, to carry out effective, successful and sustainable business and investment activities in the country.

He proposed the investor shake hands with the Ministry of Health, relevant agencies and localities to ensure the project would be undertaken effectively in Viet Nam.

The same day, Prime Minister Pham also hosted a reception for Dharmesh Shah, Chairman and Managing Director of BDR Pharmaceuticals International Pvt Ltd.

The group operates in the fields of manufacturing pharmaceuticals and cancer drugs, special care, dermatology, gynecology, and cardiology in many countries.

It has already set up a representative office in Viet Nam since 2022, and is currently providing pharmaceutical input materials for making cancer drugs for some factories in the country.

Shah and other BDR leaders expected that the Prime Minister would direct and promote the approval of distribution licenses for drugs to treat some types of cancer such as prostate cancer and breast cancer in the Vietnamese market.

They expected to engage in drug production and technology transfer, support pharmaceutical manufacturing facilities that have been granted Viet Nam’s GMP certificate to meet EU-GMP and WHO-GMP standards, and develop a data center in the country.

For his part, the Prime Minister welcomed the group’s investment strategy, and asked the group to discuss specific projects with relevant Vietnamese agencies to promote the efficiency of cooperation.

He also vowed to offer the best possible conditions for the group to operate efficiently in Viet Nam.

Source: VGP