According to a local source, B. Braun will expand its investment capital in Vietnam over the coming seven to nine years. The boost in investment aims to meet a rising healthcare demand in both Vietnam and abroad. The additional investment will create 1,000 to 1,300 direct jobs, and spark the creation of 2,000 to 2,500 secondary jobs.
The expansion includes a US$ 45.5 million medical equipment factory which is expected to be completed within 2014, and another medical equipment plant worth US$97 million which is expected to become operational in 2016.
Moreover, B. Bruan will also build a new pharmaceutical factory worth US$66.3 million. This factory plans to cover 10,000 squares metres and is expected to start operating in the fourth quarter of 2015. All the projects will be implemented in Thanh Oai district, Hanoi, where the German healthcare company is already running an intravenous set production factory.
“B. Braun has commenced procedures to seek construction permits and land acquisition for new projects,” said the source.
The investment underlines Vietnam’s importance in its manufacturing strategy, and follows its initial successes in the country. The expanded investment is part of the firm’s wider US$4 billion expansion plans and is aimed primarily at building or expanding production facilities in Germany and around the globe.
B. Braun has maintained a presence in Vietnam since the early 1990s in the form of a joint venture. In 1992, the company initially opened a representative office in Ho Chi Minh City, followed by other offices in Hanoi, Danang, Can Tho and Hue.
B. Braun set up its first Vietnamese production facility, an IV solutions plant in Hanoi, in 1996.
Today, B. Braun Vietnam is a wholly-owned subsidiary of the B. Braun achieved US$75 million in revenue and created around 1,000 jobs in Hanoi, reported the source.
B. Braun is not the only European pharmaceutical company to have increased investment capital in Vietnam. Last year, France’s biggest drug maker Sanofi announced it would start building a US$75 million plant in Vietnam to satisfy the burgeoning healthcare demand in Asia.