Vietnam’s pharmaceutical industry has historically relied on China for over 80% of its pharma inputs. However, the Covid-19 pandemic has caused significant disruptions in the supply chain, particularly affecting imports from China and Europe. Consequently, Vietnam is now turning to India to fulfill its pharmaceutical needs
Vietnam’s shift towards Indian pharmaceutical supplies highlights the potential for enhanced bilateral trade relations in the healthcare sector, driven by the disruptions caused by the Covid-19 pandemic.
This partnership not only helps Vietnam diversify its supply chain but also provides a lucrative opportunity for Indian pharmaceutical companies to expand their market presence.
Market Value: Vietnam’s pharmaceutical market is valued at approximately $5 billion.
Supply Chain Shift: To mitigate the impact of supply disruptions, Vietnam has approached Indian healthcare, pharmaceutical, and beauty product companies for assistance.
Continued dialogue and negotiation between the Vietnamese authorities and Indian pharmaceutical representatives are essential to solidify this burgeoning partnership
Trade and Investment Event: India’s Department of Pharmaceutical has received a request from the High Commission of Vietnam to participate in a healthcare event scheduled for May 2023. This event aims to foster trade and investment opportunities between the two nations.
POTENTIAL BENEFITS FOR INDIA
Market Opportunity: Vietnam is identified as a high-growth market within the region, presenting significant potential for bilateral trade and investment.
Export Statistics: In FY2021, India exported pharmaceutical products worth over $243.91 million to Vietnam, ranking it 21st among India’s export destinations for pharmaceuticals.
R&D Advantage: Vietnam’s limited research and development capabilities in the pharmaceutical sector offer Indian companies an advantageous position to supply and perhaps collaborate on R&D efforts.
STRATEGIC IMPLICATIONS:
Enhanced Trade Relations: Strengthening pharmaceutical trade ties with Vietnam could open new avenues for Indian companies and help diversify Vietnam’s supply base.
Economic Growth: Both countries stand to gain economically from increased trade and collaboration in the healthcare sector.
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