Vietnam Pharma Sector Estimates Revenue of US$2B in 2012

The pharmaceutical sector’s revenue is forecast to hit US$2 billion by 2012, according to the Vietnamese Ministry of Health’s Drug Administration.

The administration announced the estimate at a recent conference to assess the health sector’s investment attraction.

Vietnamese people spend US$1.7 billion on buying medicine products in 2009, up 18.9% from a year earlier, the administration said, adding that drug expenditure per capita was around US$19.77 last year, soaring 495.48% on year.

The government is encouraging foreign firms to invest in the field of vaccine production as the country imported US$59 million worth of vaccines last year to meet demand of locals.

Many foreign investors are interested in Vietnam’s medicine market after it became a member of World Trade Organization (WTO) in 2007, the administration’s head Truong Quoc Cuong said.

Under Vietnam’s WTO commitments, foreign investors can establish 100% foreign-invested hospitals or set up business cooperation contracts with Vietnamese partners. The minimum capital for hospital construction is US$20 million.

Vietnam’s health sector has to date attracted 70 foreign direct investment (FDI) projects totaling US$908 million, the Ministry of Planning and Investment’s Foreign Investment Agency said.

TBKTSG

Tags: Vietnam Pharma Sector, Vietnam pharmaceuticals