Pharmaceutical sector of Sri Lanka has increasing potential to penetrate Vietnamese market
The Embassy of Sri Lanka in collaboration with Export Development Board (EDB) organized a Webinar on “Sri Lankan Pharmaceutical Industry” to Vietnamese Pharmaceutical companies a couple of days before the Medipharm Expo 2024 in Ho Chi Minh (HCM) city. This was organized in order to raise the awareness as well as the potential of Sri Lankan Pharma Sector to leading importers and manufacturers of pharma in Viet Nam. The webinar was attended by over 100 Pharma companies in Viet Nam, Drug Authority of Viet Nam and Viet Nam Pharmaceutical Association along with the Sri Lankan Pharma companies which are participating at the aforementioned Medipharma Expo 2024.
Ambassador A. Saj U Mendis, delivering the welcome remarks, mentioned that although the pharmaceutical manufacturing in Sri Lanka is modest in its scale and scope when compared with Viet Nam, the quality of drugs produced in Sri Lanka is quite high and impressive adhering to the international standards such as ISO, WHO and EU GMP standards maintained by the industry. Ambassador Mendis further stated that the Sri Lankan Pharma companies are much eager and keen to associate, engage, form joint ventures and to export to the Vietnamese market. He further stated that Viet Nam boasts a large Pharma market in excess of USD 10 billion and envisages it to reach USD 16 billion within the next couple of year. Mendis further added that Viet Nam is a rapidly developing economy, which could be described as amongst the fastest growing economies in the world, with a population of 100 million
Ambassador Mendis delivering the opening remarks at the pharma webinar
On the same note, Ambassador Mendis enunciated that Sri Lanka’s pharmaceutical market is around USD 750 million, of which 85% is imported and remaining 15% is locally produced. Government has allocated Pharma making Zones in Hambantota within 200 acres with the intention to attract FDIs and joint ventures in order to increase domestic production of medicines and pharma. Further, generous tax holidays for exports, 0% duty & taxes on imported capital goods & raw materials, 100% repatriation of capital and profits, dividends exempt from income and withholding taxes to non-resident entities are some of the compelling incentives extended to foreign pharma companies in this specifically identified and dedicated Zone. He earnestly implored and urged the Vietnamese companies to seriously consider investing and engaging in the pharma sector of Sri Lanka, given a number of efficacious trade agreements and FTAs with many countries in the region. This would enable select Vietnamese pharma companies to manufacture pharma products in Sri Lanka at competitive cost and to market not only in Sri Lanka but also to export to the region consisting of well over 40% of the global population.
Dr Kingsley Bernard, Chairman & CEO of EDB stated that the Pharmaceutical Sector has been identified as one of the most promising and emerging sectors of Sri Lanka, not only to be developed as an import substitution industry but also as an export-oriented industry which could not only earn but could save a large quantum of foreign exchange, thus mutually benefiting both Sri Lanka and pharma corporates of Viet Nam. In Sri Lanka, around 25 pharmaceutical manufacturing companies are currently engaged in the manufacturing of variety of pharmaceutical products.
A customized video was played on the “Sri Lankan Pharmaceutical Industry”, which embraced attention and enhanced interest of Vietnamese audience as it provided first-hand experience of the industry. Mr. Kalana Hewamallika, President of Sri Lanka Pharmaceutical Manufacturers’ Association (SLPMA) made a presentation on “Pharmaceutical Industry of Sri Lanka”, mentioned that by 2030 SLPMA intends to produce 40% of local market requirements. Whilst enlightening on the pharmaceutical products manufactured by different companies in Sri Lanka, he mentioned that at present, Sri Lanka exports medicines to Myanmar, Cambodia, Maldives, Seychelles, Japan and Philippines and Viet Nam is a new market they wish to penetrate.
Sri Lankan delegation at the MediPharm Expo 2024 in HCM city
Mr. Rohan Karunathilake, General Manager of Astron Ltd and Mr. Dinesh Kumar Athapaththu, Managing Director of Morison Ltd presented in detail about their respective companies and products and their meticulous objectives in the Viet Nam market. This was followed by a Q&A Session, which clarified questions and elucidated the Vietnamese audience.
Delivering the closing remarks, Ms. Kishani Wickramasinghe, Minister Commercial of the Embassy, invited the Vietnamese distributers, agents and importers to visit the Sri Lankan Pavillion at the MediPharm Expo 2024 and requested them for B2B meetings with Sri Lankan companies.
It is strongly expected that since Viet Nam imported goods and services worth in excess of USD 350 billion in 2023, the pharma corporates of Sri Lanka would be able to enter the Vietnamese market as well as to have commercial engagements and joint ventures, amongst others.
Ha Noi
2nd August 2024
