India’s leading pharmaceutical enterprises, including SMS Pharmaceuticals, Sri Avantika Contractors, and BDR Pharmaceuticals International Pvt. Ltd., committed to their investments in pharmaceutical projects in Vietnam during their meetings with Vietnamese Prime Minister Pham Minh Chinh on Wednesday (local time).

The Vietnamese prime minister is in the South Asian country for a state visit through Thursday.

P. Ramesh Babu, chairman and managing director of SMS Pharmaceuticals, and Narendra Reddy, managing director of Sri Avantika Contractors, proposed developing a 500-hectare pharmaceutical park at Nghi Son Economic Zone in Thanh Hoa Province, north-central Vietnam.

The project will initially carry a price tag of some US$200 million. The investment will be increased to $4.5-5 billion in the next decade.

The park will gather vaccine, antibiotic, and anti-cancer drug factories, whose products will be exported to the U.S. and European markets.

“About 50 secondary investors are willing to participate in the project. We want to become a partner of the Vietnamese government and bring secondary investors to Vietnam to create jobs and incomes for local residents and support local startups as well as Vietnam’s pharmaceutical sector,” Babu said.

They had worked with authorities in Thanh Hoa Province and secured great support, the Indian entrepreneur noted, adding that Vietnam is a dynamic country in Southeast Asia and a leading destination for investment.

After the COVID-19 pandemic was kept at bay, many international investors have chosen Vietnam as an ideal investment destination.

Babu expected the Vietnamese government to create favorable conditions in land banks, site clearance, investment procedures, tax incentives, and other policies.

Meanwhile, Dharmesh Shah, chairman and founder of BDR Pharmaceuticals International Pvt. Ltd., expressed his interest in a cancer drug production project in Vietnam.

Prime Minister Chinh praised Indian pharmaceutical companies for their plans to invest in Vietnam, stating that their decisions are wise given the high demand for pharmaceutical products and medical checkups and treatments in the country.

Up to 33 percent of pharmaceutical products in Vietnam are imported from India.

Vietnam has a large population, diversified materials for pharmaceutical production, and a high demand for high-quality pharmaceutical production, PM Chinh said.

He asked Indian investors to use land sparingly and effectively, prioritize high tech and technology transfer, and participate in policy improvement, infrastructure development, and manpower training.

Indian firms should continue working with the Vietnamese Ministry of Health and other relevant ministries and localities to carry out projects in line with regulations, the Vietnamese government leader noted.

He stressed that the Vietnamese government always supports and is willing to make legal frameworks favorable for investors, including Indian companies.

The Vietnamese prime minister and his entourage arrived in New Delhi late Tuesday evening (local time) for a state visit to India.

This is the first state visit by PM Chinh as the head of government and also the first business trip to India by a Vietnamese prime minister in 10 years.

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