Leading Indian economic groups reveal mammoth investment plans in Vietnam

Gautam Adani, founder and chairman of Adani, which ranks among the top 3 industrial conglomerates in India, said the group is pouring its investment into Lien Chieu port project in Da Nang city with a total investment of more than US$2 billion, along with a full logistics ecosystem in the city.

He also revealed that Adani also wants to invest in Vinh Tan thermal power plant in Binh Thuan province with an estimated capital of US$2.8 billion. The group is seeking partnerships with Vietnamese firms to build Chu Lai and Long Thanh airports and develop a logistics centre in Vietnam.

For his part, PM Pham Minh Chinh, who is in New Delhi for a State visit to India, welcomed Adani’s investment strategy in Vietnam and said the country is currently implementing three strategic breakthroughs - institutions, infrastructure, and human resource training - to promote socio-economic development.

He asked the group to bring into Vietnam advanced technology and modern management skills to help local businesses to engage in global production and supply chains.

Vietnam will create all favourable conditions for foreign businesses to invest in essential infrastructure projects in the country, such as highways, airports, seaports, high-speed railways, metros, and logistics centers, he told the executive.

Vietnamese Prime Minister Pham Minh Chinh and Ramesh Babu Potluri, chairman - managing director at Sms Pharmaceuticals Ltd, during their meeting in New Delhi on July 31

The same day, PM Pham Minh Chinh had a meeting with leaders of Sms Pharmaceuticals Ltd. and Sri Avantika Contractors that are operating in the fields of mining, pharmaceuticals, infrastructure, and commerce. Sms Pharmaceuticals Ltd. and Sri Avantika Contractors have entered into a partnership with a Vietnamese firm to develop a pharmaceutical park in Thanh Hoa province. 

The project will have an initial investment of between US$700 million – US$1 billion in the first phase, and between VND4-5 billion will be added in the next phases lasting for 10-12 years.  

At the meeting, Ramesh Babu Potluri, chairman/managing director at Sms Pharmaceuticals Ltd., welcomed Vietnam’s conducive investment environment and proposed that the government consider approving the project.

Chinh welcomed the group’s investment plan and said Vietnam wants to cooperate with foreign partners to develop the pharmaceutical industry to meet domestic demand, reduce imports and also export products to regional and world markets.

He pointed out that Vietnam has abundant sources of raw materials for pharmaceutical manufacturing, but the industry is yet to bring into full play its strength, with 33% of the products imported from India alone.

According to the PM, Vietnam introduces special investment incentives for projects with large capital scale, quick disbursement and using high technology. The government stays ready to create a favourable legal corridor for foreign firms, including those from India, to carry out effective, successful and sustainable business and investment activities in the country.

He requested the investor to work closely with the Ministry of Health, relevant agencies and localities to ensure the project would be undertaken effectively in Vietnam.

Vietnamese Prime Minister Pham Minh Chinh (R) shaking hands with Dharmesh Shah, chairman and managing director of BDR Pharmaceuticals International Pvt Ltd ahead of their meeting in New Dehli on July 31

Also on July 31, PM Pham Minh Chinh received Dharmesh Shah, chairman and managing director of BDR Pharmaceuticals International Pvt Ltd. that operates in the fields of manufacturing pharmaceuticals and cancer drugs, special care, dermatology, gynecology, and cardiology in many countries. The group has opened a representative office in Vietnam since 2022, and is currently providing pharmaceutical input materials for making cancer drugs for some factories in the country.

Shah and other BDR leaders expected that the Prime Minister would direct and promote the approval of distribution licenses for drugs to treat some types of cancer such as prostate cancer and breast cancer in the Vietnamese market.

They also expressed their desires to deploy cooperation on drug production and technology transfer, support pharmaceutical manufacturing facilities that have been granted Vietnam’s GMP certificate to meet EU-GMP and WHO-GMP standards, and develop a data centre in the country.

Chinh for his part welcomed the group’s investment strategy, and asked the group to discuss specific projects with relevant Vietnamese agencies to promote the efficiency of cooperation. He also pledged the best possible conditions for the group to operate efficiently in Vietnam.

Source: VOV