Though the pharmaceutical market is expected to see rapid growth, foreign companies are not interested in investing in drug production, leaving Vietnam heavily dependent on imports. The country's pharmaceutical and healthcare sectors are set to see strong growth, albeit from a low base, given the bullish outlook on the economy and rising affluence. Besides, the government is committed to universal healthcare coverage, according to Business Monitor International, a UK-based information provider on country risk and industry research. Spending on drugs is expected to increase from US$2.84 billion last year to $3.31 billion this year, it said. Two-thirds of Vietnam's 90 million people are covered by health insurance, and the ratio is expected to rise to 70 percent by 2015 and 80 percent by 2020, according to Deputy Minister of Health Nguyen Thi Xuyen. But despite the promise, the market is not attractive to foreign investors since Vietnam is still heavily reliant on imported raw … [Read more...] about Lack of raw materials puts foreign drug firms off production
PANO - The Vietnam economy has been growing at a steady pace for the last decade or so and as it is common for any developing country the consumption of steel is linked to the GDP growth of the country. Vietnam consumed around 11.7 million tones of steel for the year 2010 and the consumption is going to increase at about 10% for the next 5 years or so. It is expected that the steel consumption will rise to about 20 million tones by 2015. As of now the major portion of the steel consumption is imported, which puts a strain on the trade deficit and hence the forex reserves of the country. It is imperative that Vietnam produces steel based on its own raw materials, as it will help save scarce foreign exchange and prevent the trade deficit from increasing further. The trade deficit for Vietnam was about USD 12 billion for 2009. If incremental volumes of steel in future are produced from domestic raw materials, it will help to minimize increase in trade deficit and prevent the currency … [Read more...] about Imperatives for using local raw material resources for steel-making in Vietnam
Vietnamese enterprises have to import a huge amount of raw material from other countries every year with several latent risks that pose a constant challenge for local companies. When first entering the global market, Vietnamese cashew was recognized as a high-quality product. However, in recent year, the country's leading spot has shaken with many companies suffering losses and discouragement because they could not source raw material. At a recent conference, the Vietnam Cashew Association said that the area under cashew in the country has become narrower, so in order to supply the demand volume for export, the local cashew industry has to import 50 percent of the material. Nguyen Duc Thanh, CEO of Tan An Foods Processing Export Limited Company, shared that raw cashew was mainly imported from Africa and its quality was hard to control. Last year, the company suffered losses because 1,500 tons of raw cashew imported from Africa was mixed with low-quality cashew. Added to this, … [Read more...] about Raw material a perennial challenge for export firms
VietNamNet Bridge - Natural resources and minerals exports bring tens of billions of dollars to Vietnam every year. However, the loss it suffers from mineral exports is much bigger than the sum of money.Vietnam warned about Dutch disease, urged to stop exporting raw minerals Just over the last 7 years, Vietnam's coffee exports increased by 2.5 times, natural rubber exports by two times. And during the same time, in the Central Highlands only, 206,000 hectares of forests has disappeared. In 1980s, natural resource exports were the main source of income of Vietnam. Nowadays, though the turnover from natural exports just accounts for 1/10 of the total export turnover, Vietnam remains a natural resource based economy. A report by the Vietnam Chamber of Commerce and Industry (VCCI) showed that mining industry makes up 10-11 percent of GDP. In 2012, Vietnam earned $9.6 billion from mineral exports, of which the crude oil alone brought $8.22 billion and coal $1.23 billion. However, … [Read more...] about Exporting raw materials, Vietnam eats itself
VietNamNet Bridge - The Ministry of Industry and Trade (MOI) has issued a series of documents, allowing some local enterprises exporting raw materials to help reduce the inventories. The door for raw mineral exports has, once again, been opened, though not to all enterprises. With the nod given by MOIT, many enterprises in the provinces of Binh Thuan, Nghe An, Phu Tho, Lao Cai, Thua Thien - Hue and Quang Binh now can export raw minerals to clear the inventories. The decision by the watchdog agency surprised many people, who just heard some months ago that Vietnam had decided to gradually stop the "raw mineral bleeding", i.e. the raw mineral outflow from Vietnam. Explaining its decision, the ministry said this is just a Band-Aid solution which exceptionally opens a way for enterprises to clear their inventories to ease their difficulties in the production and business. The ministry affirmed that only the inventories would be exported, while enterprises must not exploit more … [Read more...] about Allowing raw material exports, MOIT yields to enterprises?