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The pharmaceutical market in Vietnam attracts foreign investors

Update: 12/8/2017 - View: 42

Pharmaceutical production scale in Vietnam accounted for 77% in volume but only 35% in value. In the context of extensive pharmaceutical market, many Vietnamese pharmaceutical companies actively seek opportunities to cooperate with foreign pharmaceutical companies, to develop the domestic market and export.

 


 

Development cooperation for the common goal: All for the health of Vietnamese people

 

On September 7, on the visit of the French President within the framework of the Vietnam-France Business Forum 2016, in the presence of leaders of the two countries, Sanofi Group announced the signing of an agreement to strengthen and expand strategic cooperation with Vietnam Pharmaceutical Corporation (Vinapharm).


According to this agreement, Vinapharm has invested in Sanofi Vietnam, which is owning a factory complying with GMP standard at the Saigon Hi-Tech Park. This new factory will be built with total investment of $75 million with a modern technology model and a maximum capacity of 150 million boxes per year and it will be a pharmaceutical development center in all over Asia. Up to now, this is Sanofi's largest invested factory in ASEAN region.

 

According to a report by BMI Research, Vietnam's pharmaceutical market is expected to grow from $4.2 billion in 2015 to $7.2 billion by 2020 and is expected to grow at least 10% in the next 5 - 10 years. Historically, Vietnam market has been always attracted by foreign investors by a large population, young people and high GDP and specific characteristic of each regions. “In other countries in the region, the pharmaceutical market is dominated by multinational corporations in terms of value, but conversely in Vietnam, there are many pharmaceutical companies that are dynamic and have own competitive advantages”, said by Cyril Grandchamp-Desraux, Director of ASEAN Sanofi.


Mr. Cyril Grandchamp-Desraux, said in an interview with Tuoi Tre, that the agreement reaffirms Sanofi's commitment to producing and developing high-quality,
diversified pharmaceuticals to meet the needs of the Vietnamese market. Not many ASEAN countries both have invested in the development of hospital infrastructure, good health care system and have included extended health insurance policies with a diversified list of drugs as in Vietnam. This is a favorable condition for pharmaceutical industry development.

 

Promote the export of pharmaceutical products “Made in Vietnam”

 

According to Deputy Minister of Health Pham Le Tuan, the cooperative relationship between Vinapharm and Sanofi has been in place for 23 years. This partnership has created a reputable enterprise which provides the market with quality pharmaceutical products trusted by health facilities and consumers. Therefore, this new cooperation will continue to promote strengths of the two sides, in which Sanofi is a leading pharmaceutical company in the world with high-quality products while Vinapharm has a clear understanding of the domestic market demand as well as health care needs of Vietnamese people. Further procedures of the agreement are expected to be completed later this year after receiving approval from the competent State authorities.

According to a representative of the Ministry of Health and the Pharmacy Law passed by the National Assembly in early 2017, Vietnam aims to focus on developing the pharmaceutical industry and how to produce more high-quality pharmaceutical products. With the investment in the new plant following the modern technology model, the Ministry of Health believes that the products not only provide for the domestic market but also export to Asia Pacific countries, even to the countries that require high quality product standards such as Japan. "Once the pharmaceutical products “made in VN” are exported to advanced countries, it will be not only a benefit of Sanofi or Vinapharm but also an image of the Vietnamese pharmaceutical industry," said by the Deputy Minister of Health Pham Le Tuan.

 

Mrs. Martine Pinville, French Secretary of State for Trade, Crafts, Consumer and Social Economy and Solidarity said Vietnam and the European Union have currently signed a Free Trade Agreement (FTA VN-EU), and under the commitment, opportunities for French enterprises in the field of agriculture and pharmaceuticals will be really large. She also emphasized that current joint-venture cooperation is a good foundation for enterprises of both countries to take full advantage of FTA’s commitments.

Factory:
Quang Minh Industrial Zone, Me Linh Dist., Hanoi, Vietnam
Tel: +84.4.3584 1213/14/16 - Fax: +84.4.3584 0788
Email: info@saokimpharma.com
Hanoi Office:
Floor 10, SkyCity Tower - No.88 Lang Ha, Dong Da, Hanoi
Tel: +844.7305.9668 Fax: +84.4.373.66669
Email: info@saokimpharma.com
HCMC Office:
Villa 185B1, Vo Thi Sau Str., Ward 7, Dist. 3, HCMC
Tel: +84.8.3864. 5584 Fax: +84.8.3864 5583
Email: info@saokimpharma.com
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