Strengthening Pharmaceutical Cooperation between Vietnam and Pakistan

Vietnam and Pakistan established diplomatic relations in 1972, but not until recent years when the two countries have reopened permanent embassies and implemented active measures has the cooperation between the two countries begun to make new changes. Not just developing good political relations and promoting economic cooperation, Vietnam and Pakistan are working closely in regional and international forums, and has been developing friendship relations and mutual trust for over 40 years.

 

Particularly, economic and trade relations between Vietnam and Pakistan have enjoyed relatively stable development, with a significant increase in exports and imports over the recent years. The bilateral trade turnover of Vietnam and Pakistan reached only US$27 million in 2000, rose to US$75 million in 2005, US$175 million in 2009 and US$400 million in 2012. Particularly in the first four months of 2013, bilateral trade volume reached US$96.2 million and it is expected to reach US$500 million by the end of 2013.

 

Vietnam mainly exports to Pakistan goods such as tea, pepper, rubber, tires and all kinds of computers, generators, auto parts, electronic products, handicrafts and shoes. Also Pakistan importers are starting to give more attention to the Vietnam seafood market. Currently, Vietnam and Pakistan are pushing for market research to expand investment activities and diversify business items. At the same time, Pakistan is now exploring the possibility of joint ventures in the fields of industrial investment, agricultural products, cooperation and exchange of culture, training and preparing to expand into the basic technology, information technology and software.

 

Mr Hung said that in 2012, Vietnam spent more than US$3.5 billion on imports of pharmaceutical products and pharmaceutical raw materials. The main markets offering pharmaceutical goods for Vietnam include France, India, South Korea and Thailand. As for pharmaceutical raw materials, in addition to China, Vietnam mainly imports from Spain, Austria, South Korea and France. With abundant potential, Vietnam's pharmaceutical industry is achieving significant growth. In the period 2008-2011, the growth rate was only 13.5 percent / year, in 2012 it reached 25 percent and had the value of US$2 billion. Mr Hung emphasized, "The pharmaceutical industry is a high potential business; particularly the demand for raw materials and finished products of Vietnam is still quite large. This is an opportunity for business of Vietnam and Pakistan to take advantage and exploit, bringing benefit for the two countries.”

 

According to Mr Aizaz Khan, a representative of the Pakistan Embassy in Vietnam, the bilateral relationship between the two countries is growing in a positive direction. Particularly, in the trade-investment sectors, there are many practical activities, many agreements which have been implemented. Besides, Vietnam and Pakistan now have implemented many trade promotion activities in the two countries' markets. In order to create favourable conditions for enterprises of the two sides, Pakistan has also worked with Vietnam Airlines to open direct flights between the two countries. In only a short time there will be direct flights from Hanoi to Pakistan and vice versa, thereby helping to reduce freight costs, facilitating trade services, contributing to the promotion trade and enhancing cooperation between the two business communities.

 

In addition, to support the business payments, Pakistan’s central bank has also decided to allow Pakistani commercial banks to set up branches in Vietnam. These are favourable conditions to strengthen cooperative relations between the two countries in the future.