The Ministry of Health has said that Viet Nam had licensed 37 FDI-invested projects with registered capital of US$282.6 million in 2008, a tiny amount of US$64 billion projects.

Of the total projects, only 25 projects totaling US$192.9 million are operational, the ministry said. Most of foreign pharmacy companies prefer to imports and distribution of pharmaceutical products to direct investments in Viet Nam.

Bui Quoc Trung, vice head of the Ministry of Planning and Investment’s Foreign Investment Department said the government is working incentives to entice foreign investors as part of efforts of industrializing chemistry-pharmacy sector by 2015 and vision toward 2020.

Viet Nam will completely open its distribution market for foreign partners, allowing them to set up the wholly foreign-owned companies from 2009. Accordingly, foreign retailers will have rights to distribute tractors, vehicles, machinery, cars and motorbikes from January 1, 2009.

From January 1, 2010, they will be allowed to distribute additional commodities of liquors, cement and clinker, fertilizer, steel and iron, paper, vehicle tyres and audiovisual equipment.

Last year, Viet Nam reportedly spent US$1.425 billion on medicines, up US$300 million from 2007, or US$16.45 on medicine per capital, up 22.8% on year and rising 305 per cent from the year of 2000, the ministry said. (Dau Tu)