The idea of setting up the pharmaceutical industrial park was launched during recent trade and investment promotion sessions for the pharmaceutical industry organized by the Vietnamese Embassy in India, according to the local Vietnam Trade Office.

Vietnamese Ambassador to India Pham Sanh Chau said construction of the pharmaceutical industrial park would open an opportunity to welcome large pharmaceutical giants for long-term investment, helping Vietnam reduce dependence on traditional pharmaceutical supplies and diversify production chains.

It is estimated the industrial park would create jobs for 50,000 direct and 200,000 indirect workers, earning export revenue of about $5 billion per year.

Leaders of localities in Da Nang and Thua Thien-Hue in central Vietnam, Long An in southern Vietnam, and Hai Duong, Bac Ninh, and Thai Nguyen in the north have discussed land rent, geographical location, transport infrastructure and investment incentive mechanisms with Indian investors.

Ramesh Babu, chairman of India-based pharmaceutical manufacturing company SMS Pharmaceutical Group, which plans to invest in the pharmaceutical industrial park in Vietnam, said if successful, it would turn the country into a leading pharmaceutical research, development and production base in Southeast Asia and the world.

Analysts at SSI Securities estimated Vietnam's pharmaceutical industry to grow by 15 percent in 2021 mainly due to a rapidly aging population and rising incomes.