Implementing economic diplomatic duty, Vietnam Embassy at India cooperated with Indian companies (including SMS Pharmaceutical Ltd Company, Leaps & Bounds Office at Vietnam) in organization of the online meeting on “Pharma Park” on July 27, 2021, with participation of connecting spots in India and Vietnam. Representatives of leadership of People Committees, departments and agencies of cities and provinces in Vietnam (Hai Phong, Hai Duong, Bac Ninh, Thai Nguyen, Nam Dinh, Da Nang, Thua Thien Hue, Quang Tri, Khanh Hoa, Ba Ria – Vung Tau, Ho Chi Minh City, Long An), Investment Promotion Center of the South – IPCS (Ministry of Investment and Planning), industrial parks and economic zones at the aforementioned cities and provinces (such as DeepC and Trang Due IPs at Hai Phong, Tan Thach IP at Long An, etc.)
A scene of the online meeting “Pharma Park” on July 27, 2021
Photo: Department of Foreign Affairs.
According to the IPCS, by June 2021, India ranked the 26th position from the top list of 140 countries and territories investing in Vietnam, with a number of 160 FDI projects; Indian projects mainly operated in the South of Vietnam (in which 169 projects with an amount of $95 million have been run at Ho Chi Minh City, 04 projects with an amount of above $195 million have been operated at Ninh Thuan Province). Those projects of India have mainly involved in processing manufacturing sector. Also, the IPCS mentioned, in pharmaceutical industry at Vietnam, by July 2021, there have had about in-validity 132 FDI projects of Japanese, Singaporean, Chinese and Hong Kong investors at cities and provinces of Vietnam.
Presentation of IPs in cities and provinces of Vietnam
Photo: Department of Foreign Affairs.
In the context that Vietnam has prepared to host new flows of investment, a favorable environment to foreign investment attraction, support from the Central Government and local authorities, Investment Law 2020 approved on June 17, 2020 (replaced Investment Law 2014) officially being effective since the first day of January 2021, investment in health care sector has particularly got attention in Vietnam. Currently, the pharmaceutical industry has responded to about 53% domestic demand, and estimated to grow around 14-15% ongoing years in a scale of approximately 98-million population at Vietnam and 574-million inhabitants at ASEAN market. Given that, the pharmaceutical industry has been put in interest of foreign investors including Indian ones.
Leaps & Bounds Vietnam Office’s Representative paid a high consideration about industrial manufacturing operation at Vietnam.
Photo: Department of Foreign Affairs.
At the meeting, leadership representatives of People Committees of cities and provinces were introducing strengths and interest in calling FDI projects in general and pharmaceutical FDI projects in particular. They expressed their interest and commitment to land and infrastructure facilitation (electricity, water supply, solid waste and waste water treatment, etc.) for investors’ convenience in investment and production. Representatives of IPs (including DeepC and Trang Due IPs at Hai Phong) also presented their capacity and supply to meet foreign investors’ requests. Delegate of SMS Pharmaceutical Ltd Company (India) expressed their interest in implementation of “Pharma Park” project at Vietnam. According to the Company, there has had yet currently any specific industrial park in Southeast Asia for pharmaceutical research, development, production and export at a big scale. With their experience and already-built importing markets in EU and the USA, after making comparison between Vietnam and several countries, the Company has been interested in establishment and operation of the “Pharma Park” project at Vietnam, with an initial investment capital of $500 million to meet expectation of an in-return profitable amount of $5 billion, attracting about 50,000 direct workers and above 200,000 indirect workers. The Company has searched for a plain land sized around 500-1000 ha (minimum at a size of 300 ha) facilitating inbound and outbound connection and transport, stable and reliable energy sources (power, water, firefight, roads, light, solid waste and waste water treatment), supportive industry services, supporting policies from Central Government and local authorities, visa, etc.
According to representative of Vietnam Embassy at India, if the “Pharma Park” project was successfully operated ongoing time, it would be a breakthrough in the pharmaceutical industry at Vietnam, contributing to meet domestic demand and accessing regional and international markets./.