In a significant step towards deepening international cooperation, Vietnamese Prime Minister Phạm Minh Chính hosted Nitin Kapoor, Chairman and General Director of AstraZeneca Vietnam, in Hanoi on 5 March 2025. The meeting underscored Vietnam’s ambition to bolster its pharmaceutical and vaccine industries while advancing sustainable development goals through foreign partnerships. PM Chính urged AstraZeneca to accelerate the transfer of proprietary drug manufacturing and vaccine technologies to Vietnam, highlighting the government’s commitment to improving public healthcare and fostering a conducive business environment.

The dialogue comes at a pivotal moment for Vietnam, as the country seeks to recover from the economic and social impacts of the COVID-19 pandemic while pursuing an ambitious economic growth target of over 8% for 2025. AstraZeneca, a global pharmaceutical giant, has already played a crucial role in Vietnam’s pandemic response, delivering 30 million vaccine doses ahead of schedule and at reduced costs despite global supply chain challenges. This contribution earned praise from PM Chính, who expressed appreciation for the company’s “practical and effective support” during one of Vietnam’s most challenging periods.

A Partnership Beyond Healthcare

AstraZeneca’s engagement with Vietnam extends far beyond vaccine supply. The company has invested nearly US$100 million in the country’s pharmaceutical sector, alongside a further $50 million commitment to forest and landscape restoration projects. These initiatives align with Vietnam’s broader goals of achieving net-zero emissions and sustainable development. Additionally, AstraZeneca has partnered with the Ministry of Health on various public health campaigns focusing on disease prevention and early detection, while contributing VNĐ1.2 billion to disaster relief efforts following Typhoon Yagi, one of the most devastating storms to hit the region in recent years.

During the recent Vietnam Business Forum (VBF), Kapoor and AstraZeneca provided valuable feedback and recommendations from the foreign business community to the Vietnamese government. This input is critical as Vietnam continues to reform administrative procedures and improve its business climate, reducing time and costs for enterprises. PM Chính reiterated the government’s dedication to fostering deeper ties with foreign investors, a policy that has gained momentum as Vietnam positions itself as a regional hub for manufacturing and innovation.

Technology Transfer: A Key Priority

A central theme of the meeting was the transfer of technology to Vietnam’s pharmaceutical sector. PM Chính urged AstraZeneca to prioritise the localisation of drug manufacturing and vaccine production, a move that could significantly enhance Vietnam’s self-reliance in healthcare. Such transfers would not only strengthen the country’s capacity to respond to future health crises but also create jobs and stimulate economic growth in the pharmaceutical industry, which is still in its nascent stages compared to global leaders.

Kapoor expressed enthusiasm for deeper collaboration, affirming AstraZeneca’s commitment to supporting Vietnam’s development goals. He highlighted potential partnerships with local organisations, including the Hồ Chí Minh Communist Youth Union, to drive innovation and community engagement. Kapoor also praised Vietnam’s resilience and the government’s decisive leadership during the pandemic, describing the country as his “second home.”

AstraZeneca’s environmental initiatives were another focal point of the discussion. Through afforestation and biomass energy projects, as well as carbon credit schemes, the company aims to support Vietnam’s transition to a greener economy. These efforts are particularly significant given Vietnam’s vulnerability to climate change, with rising sea levels and extreme weather events like Typhoon Yagi posing ongoing threats to livelihoods and infrastructure. PM Chính encouraged AstraZeneca to expand its contributions to forest restoration, social welfare, and assistance for vulnerable communities, aligning with the government’s broader sustainable development agenda.

Kapoor reiterated AstraZeneca’s commitment to accompanying Vietnam on its journey towards sustainability and economic growth. Public health campaigns focusing on early detection and prevention of diseases are also part of the company’s long-term vision for the country, aiming to reduce the burden on Vietnam’s healthcare system while improving quality of life for its citizens.

Economic Context and Future Prospects

Vietnam’s economic trajectory provides a compelling backdrop to this partnership. With a target of over 8% GDP growth in 2025, the government is keen to attract foreign investment in high-value sectors like pharmaceuticals and green technology. AstraZeneca’s investments and technological expertise could play a pivotal role in achieving these goals, particularly if technology transfers lead to the establishment of local production facilities. Such developments would not only enhance Vietnam’s healthcare infrastructure but also position the country as a competitive player in the regional pharmaceutical market.

However, challenges remain. Vietnam’s regulatory framework for technology transfer and intellectual property protection is still evolving, and foreign companies often face bureaucratic hurdles. While PM Chính has promised reforms to streamline administrative processes, the pace of change may determine how quickly partnerships like the one with AstraZeneca can scale. If confirmed, these reforms could reduce costs and timelines for foreign investors, creating a win-win scenario for both Vietnam and its partners. (Estimates of the economic impact remain unconfirmed, and no evidence currently suggests immediate outcomes from the proposed reforms.)

A Model for International Cooperation?

The meeting between PM Chính and Kapoor signals a broader trend of Vietnam seeking strategic alliances with global corporations to address domestic challenges. AstraZeneca’s multifaceted contributions—from healthcare to environmental sustainability—offer a potential model for how foreign companies can align their business interests with a host country’s development priorities. For Vietnam, partnerships like this are essential to achieving its dual goals of economic growth and social progress.

Kapoor’s personal connection to Vietnam, describing it as his “second home,” adds a human dimension to the corporate relationship. His commitment to strengthening ties with local partners and supporting Vietnam’s net-zero ambitions reflects a growing recognition among multinational corporations of the importance of cultural and social integration in their operations.

Looking Ahead

As Vietnam navigates the complexities of post-pandemic recovery and sustainable development, collaborations with companies like AstraZeneca will be critical. The government’s push for technology transfer, coupled with foreign investment in key sectors, could transform Vietnam’s healthcare and environmental landscape over the coming decades. However, the success of these initiatives will depend on the ability to balance economic imperatives with regulatory clarity and mutual trust.

For now, the meeting between PM Chính and Kapoor marks a promising step forward. AstraZeneca’s ongoing investments and commitments to public health and sustainability underscore the potential for meaningful impact, provided both sides can navigate the challenges ahead. If these efforts bear fruit, Vietnam may emerge as a regional leader in pharmaceutical innovation and green development—a prospect that, while speculative, holds significant promise for the country’s future.