Indian pharmaceutical giants SMS Pharmaceuticals and Sri Avantika Contractors are considering establishing a US$200 million plant in a manufacturing park in Thanh Hoa province. The project has already attracted around 50 potential secondary investors, according to Vietnam Investment Review.
Of note, Vietnam’s pharmaceuticals market is projected to reach approximately US$2.4 million this year, with a compound annual growth rate of 4.25 percent from 2024 to 2029, according to Statista.
Demand for healthcare in Vietnam is rising on the back of higher middle class incomes. Of note, Novo Nordisk Vietnam, a global healthcare company headquartered in Denmark, recorded increased demand for its diabetes and obesity treatments in Vietnam in the first half of the year. This fits with increased market access for EU firms as a result of the EU-Vietnam Free Trade Agreement, which took effect in August 2020 and eliminated tariffs on over half of the pharmaceutical imports from EU member states.
See also: How to Open a Factory in Vietnam: Ultimate Guide 2024