Vietnam - Pharma Opening After EVFTA.
Legal News & Analysis - Asia Pacific - Vietnam - FDI
13 August, 2019
The pharmaceutical industry is looking forward to major investment now that the European-Vietnam Free Trade Agreement has been signed. The EVFTA allows for investment in the pharma industry by European investors that may not have been allowed before, luring investors to a lucrative industry.
For example, just this week Sanofi Vietnam became the first firm to directly import drugs from overseas. See article in Vietnam Investment Review, here.
This signals a new phase of investment in the pharma industry.
It has only been recently that foreign invested enterprises have been allowed into the pharma manufacturing and import sectors. This move means that there is an open door to foreign investment in the sector.
I remember my first M&A deal was in the pharma industry, though it was a long time ago and not for import, in fact I don’t rightly remember the nature of the deal, though I do remember the fact that the due diligence was postponed until after the closing due to tax considerations. I do remember that the pharma industry was even then a major mover, and now, with the multi-billion dollar sector opening to foreign investment further than it hitherto has been, we will see a slew of investors frothing at the pit of pharma-copia.
You can also read an in depth report of the pharma situation, here, and consider whether this sector is right for you.
For further information, please contact:
Dang The Duc, Partner, Indochine Counsel